BEIJING — China will not include affordable rental housing loans in the management system that sets caps on real estate loans, the country's central bank said on Feb 8.

Financial institutions should scale up support for affordable rental housing in accordance with law while managing risks and pursuing sustained development, according to a statement jointly issued by the People's Bank of China (PBOC) and the China Banking and Insurance Regulatory Commission.

The move is expected to increase loan issuances for affordable rental housing projects and aims to further improve the country's housing support system, the PBOC said.

To guard its financial system against risks, China has implemented the management system for property loans since Jan 1, 2021, imposing upper limits on outstanding real estate loans and mortgages for lenders.

Moving forward, the central bank pledged to put in place a rental housing financial system and promote the healthy development of the property sector.