CITIC Securities: The scale of urban village transformation to boost credit ranges from 150 to 500 billion yuan per year

CITIC Securities Research Report said that urban village transformation can not only improve the living environment of residents and enhance the urban landscape, but also can promote fixed asset investment and accelerate the process of economic repair. Compared with the shed renovation, its funding sources, project size, and compensation methods for residents are different. According to our calculation, the construction and installation investment cost required for the renovation of urban villages may reach a trillion-level scale. Considering the factors such as housing sales, it is expected that the annual scale of credit promotion is within the range of 150 billion yuan to 500 billion yuan. Overall, the short-term impact of urban village transformation is mainly manifested in boosting market expectations, and the policy effect will take a longer time to gradually appear.