New city dwellers will benefit from simplified financing

Customers do business at a bank branch in Nantong, Jiangsu province. [Photo by XU JINGBAI/FOR CHINA DAILY]

China is working to make financial services more accessible and convenient for new city dwellers through a variety of measures including data sharing, targeted support and financial innovation, regulators said Monday.

The China Banking and Insurance Regulatory Commission has defined new urban residents as people who live in a city permanently but have not yet obtained a local hukou, or those who have obtained a local hukou within the last three years.

A hukou is an official document certifying that the holder is a legal resident of a particular area.

There are more than 300 million of these new urban residents in the country. According to the regulator, they have a rigid demand for jobs, starting businesses, renting or buying homes, raising children, childcare and elderly care.

Wang Wei, deputy director of the CBIRC’s Beijing office, said the office promotes government and regulatory data sharing to effectively mitigate the problem of inadequate financial services due to information asymmetry.

Beijing’s comprehensive financial services network has so far integrated information on new urban residents into several categories, including eligibility and participation in housing provident fund, social security and insurance. medical. Currently, 42 banking and insurance institutions have applied for access to the network, which will help institutions keep abreast of the dynamic credit conditions of new urban residents and control financial risks with greater efficiency, Ms. .Wang.

“We will further eliminate data barriers and use data to create accurate customer profiles of new urban residents on the premise of protecting personal information in accordance with law, in order to increase the breadth and depth of financial services for this group of people,” he said. added.

The Beijing office has also made it possible for new urban residents of the capital to benefit from the same policies as those who hold a local hukou in terms of government subsidies and waiver of fees when applying for entrepreneurship-related loans.

At the end of February, the balance of these loans in the jurisdiction of the Beijing office reached 1.18 billion yuan (185.3 million dollars), or 12.8 times the amount of the previous year.

As a province attracting a large number of migrant workers, Guangdong saw the population of its new urban residents exceed 40 million by the end of 2021. To better assist migrant workers to settle in the province, the Guangdong office of the CBIRC has guided banking and insurance institutions to actively participate in the subsidized rental housing pilot program, said Wang Wuqing, deputy director of the office.

The Guangdong branch of China Construction Bank Corp, a major state-owned commercial lender, has so far supported 245 subsidized rental housing projects, issued more than 16 billion yuan in loans and helped provide 165,300 units of rental units on the market, Wang said.

Also, under the leadership of the Chongqing office of the CBIRC, two banks signed strategic cooperation agreements for subsidized rental housing with the Chongqing Municipal Housing and Urban-Rural Development Commission and granted about 2.5 billion yuan of loans to 27 projects.

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