China Will Let Banks Lend to Local Governments for Housing

China will let financial institutions lend to qualified local government financing vehicles for public-rental housing projects, the government said, citing a meeting presided over by Premier Wen Jiabao.

“Banks and financial institutions may lend to qualified public rental housing projects directly, or though qualified LGFVs,” China’s central government said in a statement posted on its website yesterday. “The central government will continue to increase subsidies and the local governments also need to add financial investments.”