ICBC to offer 500 billion yuan worth of credit to spur home rental market in Guangzhou

PUBLISHED : Thursday, 16 November, 2017, 11:20pm
UPDATED : Thursday, 16 November, 2017, 11:20pm

Industrial and Commercial Bank of China (ICBC), the nation’s largest bank by assets, said on Thursday it would offer 500 billion yuan (US$75.4 billion) worth of credit to support the home rental market in Guangzhou.

The bank would offer credit to support the establishment of a state-owned residential leasing platform in Guangzhou.

The Beijing-based bank also signed strategic cooperation deals with two Guangzhou-based enterprises, Yuexiu Group and Pearl River Enterprises Group, to jointly develop the residential leasing market in the southern city in Guangdong province.

Chinese banks being tempted into residential leasing market

The bank would offer credit to the two companies to develop and operate home rental projects. It would also offer financial services to individual tenants, ICBC said on Thursday night.

Earlier this month, China Construction Bank (CCB), the nation’s second largest bank, became the first of the big four lenders to foray into the growing segment, as a number of local governments in mainland China have announced blueprints to encourage the growth of residential rental markets.

In November, CCB signed deals with 11 developers, including Evergrande Group, China Vanke and China Merchants Property, to help them lease more than 5,000 rental flats in Shenzhen.