The first batch of real estate project financing support list will be launched soon

Mondo Finance Updated on 2024-02-01

In order to meet the reasonable financing needs of real estate enterprises and promote the virtuous cycle of finance and real estate, the implementation of relevant policies is getting faster and faster.

Less than half a month after the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision jointly issued a document requiring the establishment of an urban real estate financing coordination mechanism, on January 26, the two departments held separate meetings to deploy and promote the implementation of the urban real estate financing coordination mechanism and accelerate the implementation of the urban real estate financing coordination mechanism.

Ni Hong, Minister of Housing and Urban-Rural Development, stressed at the meeting that it is necessary to support the development and construction of real estate projects, meet the reasonable financing needs of real estate enterprises under different ownership systems without discrimination, and promote the steady and healthy development of the real estate market. Li Yunze, Secretary of the Party Committee and Director of the State Administration of Financial Regulation, said that it will more accurately support the reasonable financing needs of real estate projects and promote the stable and healthy development of the real estate market.

The list of the first batch of real estate projects will be launched by the end of January.

The Ministry of Housing and Urban-Rural Development emphasized at the deployment meeting of the urban real estate financing coordination mechanism that the people of cities at and above the prefecture level should effectively play a leading and coordinating role, quickly establish and operate this important mechanism, timely study and judge the local real estate market situation and real estate financing needs, strengthen overall planning, refine policies and measures, build a communication platform between government and banks and enterprises, promote the precise docking of real estate enterprises and financial institutions, and coordinate and solve the difficulties and problems existing in real estate financing.

The Ministry of Housing and Urban-Rural Development pointed out that the orderly development and construction of the project is the basis for the stable and healthy operation of the real estate market and is related to the vital interests of the people. In view of the current financing problems of some real estate projects, all localities should take the project as the object, pay close attention to the study and propose a list of real estate projects that can be given financing support, coordinate the issuance of loans by financial institutions within their respective administrative regions, and accurately and effectively support reasonable financing needs.

At the same time, credit funds should be used in a closed manner and in compliance with regulations, and misappropriation should be resolutely prevented. At the provincial level, it is necessary to track and monitor the implementation of the situation, and strengthen supervision and guidance. At the national level, a project information platform for the urban real estate financing coordination mechanism will be established, and weekly scheduling and monthly reporting will be implemented. It is reported that before the end of this month, the first batch of project lists will be able to obtain loans after they land.

Zhao Xiuchi, dean of the Beijing-Tianjin-Hebei Real Estate Research Institute of Capital University of Economics, believes that whether the funds can be successfully raised and whether the project has low-cost and stable funds is the key to affecting housing prices and realizing a virtuous cycle of real estate. Therefore, it is very important to accelerate the implementation of the urban real estate financing coordination mechanism and meet the financing needs of enterprises of different ownership systems without discrimination, so as to promote the virtuous cycle of finance and real estate.

A green channel for credit will be established.

At the meeting, the State Administration of Financial Supervision also requested that in accordance with the principle of fairness and justice, the list of real estate projects that can be given financing support should be screened and sent to financial institutions within the administrative region. It is necessary to strengthen information sharing, and provide relevant financial institutions with information on project construction and operation, pre-sale fund supervision and other information in a timely manner. It is necessary to guide financial institutions and real estate development enterprises to negotiate on an equal footing, make decisions and implement them independently in accordance with the principles of marketization and rule of law, and protect the legitimate rights and interests of financial institutions.

The State Administration of Financial Supervision stressed that financial institutions should attach great importance to strengthening organizational leadership, establishing internal mechanisms, and clarifying work rules. For projects that meet the conditions for credit, it is necessary to establish a green channel for credit, optimize the approval process, shorten the approval time, and actively meet reasonable financing needs.

For projects that encounter temporary difficulties in development and construction but can basically balance funds, we will not blindly draw loans, cut off loans, or pressure loans, but will support them by extending existing loans, adjusting repayment arrangements, and adding new loans. At the same time, financial institutions should strengthen the closed management of funds and strictly prevent the misappropriation of credit funds.

Yan Yuejin, research director of the E-House Research Institute, said that the relevant work deployed by the State Administration of Financial Supervision emphasizes the orientation of implementation and promotion, and clarifies the working steps of the coordination mechanism. That is, the local government should take the lead, and the coordination mechanism should push the list of real estate projects, strengthen information sharing, and guide financial institutions and real estate enterprises to negotiate on an equal footing. The concept of "green channel for credit" mentioned at the meeting actually emphasizes efficiency, which is also a new financing mechanism based on the new situation of the real estate market.

Fully give the autonomy of urban real estate regulation and control.

In addition, the Ministry of Housing and Urban-Rural Development also requested at the meeting to adapt to the new situation of major changes in the relationship between supply and demand in the real estate market, accelerate the construction of a new model of real estate development, combine the long and short, treat both the symptoms and the root causes, and promote the steady and healthy development of the real estate market. It is necessary to adhere to city-specific policies, precise policies, and one city, make good use of the policy toolbox, fully give urban real estate regulation and control autonomy, and cities can adjust real estate policies according to local conditions.

It is worth noting that "fully endowing urban real estate regulation and control autonomy" means that the future real estate regulation and control policies will be delegated to local governments, and cities at all levels can optimize and adjust existing real estate policies according to local conditions.

Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, believes that in the past, for the key monitoring cities of the regulation and control policies, for the sake of housing not speculation, stabilizing real estate, and standardizing policy behavior, policy adjustments should be strengthened between the upper and lower coordination and reporting, which is no longer feasible in the current downward market. Give the autonomy of urban real estate regulation and control, give the rights, responsibilities and obligations of stabilizing the market and the industry to the local government, implement the main responsibility of the local government, and strengthen policy support and monitoring and assessment, so that the rights, responsibilities and interests are more equal.

In fact, since the Politburo meeting of the Communist Party of China in July last year set the tone of "major changes in the relationship between supply and demand in the real estate market", the local real estate policy has gradually changed from "supporting but not lifting" to "lifting and using", most of the second- and third-tier cities have been cancelled administrative restrictions, and the real estate policies of first-tier cities have also been actively optimized. In the process of real estate policy adjustment, local governments have more room for independent decision-making.

According to the monitoring of the Evaluation and Research Center of the China Real Estate Research Association, a total of 800 real estate regulation and control policies will be issued by local governments in 2023, which is at a historical high. Among them, there are 704 loose policies, accounting for 88%, and the real estate policy environment is close to the most relaxed stage in the past decade.

The statement of the competent department of the industry also means that the policy easing has entered the stage of accelerated implementation. "Ding Zuyu Commenting on the Property Market" believes that in the context of exploring a new model of industry development, the future policy orientation will gradually improve the housing system of "security + market", and the new round of policies will continue to promote the industry to enter a new pattern of "low-end security and high-end market". (*Zhongfang.com).

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Article**: China Real Estate Network

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