Dallas, Texas 08/13/2014 (FINANCIALSTRENDS) – China Hgs Real Estate Inc (NASDAQ:HGSH) has said that it will sign agreements with the local governments for working on large-scale shanty areas rebuilding projects. It is a leading regional real estate firm, and the company’s headquarter office is based in Hanzhong City. It is in the process of completing the formalities of agreements. It is a large project that will require the total investment of more than USD1.3 billion.
The objective of reform
The Chinese government has to reform the shanty areas. It is a significant public welfare project. The need is to improve the housing conditions of the local people. Ultimately it will enhance the quality of people’s lives. The government can further go for the urbanization drive. It will people-oriented drive and can result in the integration of the rural and urban areas. The measures will enhance the quality of urbanization. The new reform will benefit both the rural and the urban areas. Overall, it can lead to a healthy economic development. It clearly indicates that the project will hold a lot more value to the China Hgs Real Estate Inc (NASDAQ:HGSH).
The details of the plan
The proposed plan is expected to include the construction of almost 4.7 million units of subsidized houses. These will be government subsidized house. The objective is to complete the entire process by the end of 2014. The time frame was mentioned in the new circular -36 generated from General Office of the State Council of the People’s Republic of China. It was published on August 4, 2014. The circular contained the added information that funds allocation can be increased for shantytown reforms. The optimization of investment agendas was mentioned in the circular. It expects to get the loan support for similar projects from the major financial institutions.
China Hgs Real Estate Inc (NASDAQ:HGSH) CEO, Mr. Xiaojun Zhu said that the company is looking forward to the shanty area building plan. China Hgs will be a key participant in the reforming projects. China Hgs will take all the steps to provide better housing environment to the residences. The focus will remain on the quality housing along with affordable housing. The reform plans will meet the growing demand of housing in the region.