36 million subsidized houses drive PU market

According to 12th Five-year plan of national economic and social development, China will construct 36 million subsidized houses in the next 5 years, which will enable national affordable dwelling coverage to reach around 20%. Vice prime minister of state council & member of Politic Bureau of the CPC central committee Li Keqiang stated that housing supply system needed to be improved. We need to focus on promoting the construction of public rental house and increase provision of low and middle pricing & small and medium sized ordinary commercial houses. Future housing policy tend to refrain speculation activity in housing market and construction subsidized houses.

36 million subsidized houses will stimulate the building insulation market, which in turn is expected to drive the PU rigid foam demand.