China to build low-cost ‘eco-homes’ funded by corporate bonds

Housing planners aiming for a higher standard of construction, with pre-fab components and lower emissions 

China to build low-cost ‘eco-cities’ funded by corporate bonds
Construction of high-rise apartments is seen in Tongzhou district in Beijing on July 22, 2020. Photo: Koki Kataoka / Yomiuri  via AFP.

(ATF) China's Ministry of Housing and Urban-Rural Development is looking at speeding up industrial production of more environmentally-friendly and higher-standard modern buildings.

It has issued new regulations, ranging from strengthening systematic integrated design, optimising the production of components, promoting lean construction, accelerating the development of IT integration, innovation, boosting scientific and technological support, speeding up the cultivation of professional talent, and launching industrialised construction.

The industrialisation of new buildings is driven by a new generation of IT, using systematic integrated design and lean production and construction throughout a project as the main means to integrate the entire engineering industry chain to achieve a high standard of engineering construction.

This new type of housing is hoped to be economical, high-quality, and to create lower building emissions via the development of prefabricated buildings, as encouraged by the State Council.

The idea is to fully implement the new concept and promote ‘green and high-quality development in urban and rural areas, while promoting a comprehensive transformation and upgrading of the construction industry, with new industrialised buildings that can be part of an internationally competitive "China Construction" brand.

To generate increased financial support the businesses involved would raise financing via the issuance of corporate bonds.

Officials believe the policy environment for ‘green finance’ would support industrialised production of new construction projects that meet the star-level standards for green buildings. These firms also should make good use of the National Green Development Fund, and encourage localities to set up special funds without adding new hidden debts.

The new regulations apply to all the housing and urban-rural development departments (commissions, management committees), as well as education departments (committees), science and technology departments (committees, bureaus), industry and information departments, natural resources departments, and ecological environment departments (bureaus) in all provinces, autonomous regions, and municipalities directly under the central government.

This includes the People’s Bank of China's Shanghai headquarters, business management departments in provincial capitals, sub-provincial city centres, various banking and insurance regulatory bureaus, the Xinjiang Production and Construction Corps housing and urban-rural construction Bureau, Education Bureau, Science and Technology Bureau, the Industry and Information Technology Bureau, the Natural Resources Authority, plus the Ecological Environment Bureau and Market Supervision bureaus.