City government joins hands with banks to promote rental housing

The Shanghai municipal government signed memorandums with China Development Bank and China Construction Bank  separately in a bid to ensure healthy development of the local home rental market.

Shanghai Jianxin Housing Service Co Ltd, a company to offer financial services for home rental seekers, was established yesterday during a ceremony attended by Shanghai Mayor Ying Yong and Wang Zuji, president of China Construction Bank.

Also at the ceremony was Zheng Zhijie, president of the China Development Bank, who signed memorandums with the Shanghai government.

According to the memorandum, the three parties will strengthen cooperation in key areas such as credit for key projects, comprehensive financial services, and financial innovation, aiming to foster a healthy development environment for the local rental market.

The Shanghai branch of China Development Bank and China Construction Bank inked house renting deals with local state-owned enterprises such as Shanghai Municipal Investment (Group) Corporation, Shanghai Metro, and Bright Food (Group) Co Ltd to further support their participation in promoting the market.

The move is an active response to the central government’s assertion that "housing is for living in, not for speculation”.