Wenzhou cuts capital ratio for commercial housing by 20%_ Wenzhou Part-time Job Network

The State Department announced on May 27th the results of the adjustment to the capital ratio for fixed asset investment projects, among which the most noteworthy is that the minimum capital ratio for ordinary commercial housing project investment has been reduced from 35% to 20%, becoming one of the projects with the largest benefits from this adjustment.

Restored to 1996 level

The reporter noticed that this is the first reduction since the establishment of the real estate project capital ratio system in 1996. After the minimum capital ratio for affordable housing and ordinary commercial housing projects was reduced by 15 percentage points, it has been restored to the level of 1996.

In September 2004, the central government required that the self-owned capital ratio of development enterprises applying for loans must not be less than 35% in order to regulate the then overheated real estate market. In the following years, as the property market continued to heat up, the central government had introduced a series of regulatory policies for the property market, but the "35%" limit has never been relaxed.

What is the project capital ratio?