The Shanghai government has signed memoranda 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 which offers financial services for home rental seekers, was set up on Tuesday during a ceremony attended by Shanghai Mayor Ying Yong, Wang Zuji, president of CCB, and Zheng Zhijie, president of CDB.
According to the memoranda, the three parties will strengthen cooperation in various areas such as credit for key projects, comprehensive financial services, and financial innovation, to foster a healthy development environment for the local rental market.
The Shanghai branch of CDB and CCB 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."