In recent days, various cities on the "white list" of real estate financing have expressed their stance intensively, and enterprises have also begun to disclose the progress of the "white list". On February 4, a reporter from Beijing Business Daily learned that Country Garden has confirmed that more than 30 projects have been approved to enter the "white list", including many projects in Henan, Hubei, Sichuan, Shandong, Chongqing and other places are in the "white list" of the territory. Before Country Garden, many real estate companies such as Shimao Group, Jinke Co., Ltd., China Aoyuan, and Agile announced that many of their projects had entered the "white list" of financing in various places. In the view of industry insiders, with the implementation of more real estate project loan support, the financing of real estate enterprises has entered a substantial loosening stage. This will help improve the liquidity of real estate enterprises, help alleviate the tightening of real estate loans and expand real estate investment, and help promote a virtuous cycle of real estate and finance.
Risk-taking real estate companies are good.
Judging from the timeline, China Aoyuan is the first real estate company to disclose that it has entered the "white list". On February 1, China Aoyuan announced that its projects such as Nanning Yujiangnan, Chongqing Yuefu, Jade Tianchen and Hechuan Original were shortlisted for the "white list" of real estate projects. In addition, China Aoyuan's projects in Guangdong, Zhengzhou, Shenyang, Tianjin and other projects are also expected to enter the "white list" one after another.
On February 2, Agile Group's official WeChat disclosed that up to now, a number of projects involving Chongqing, Guangzhou, Kunming and other cities have been clearly included in the "white list" by the local housing and urban-rural development department.
Subsequently, Shimao Group and Jinke Co., Ltd. officially announced the news that the project had entered the "white list" almost at the same time. Shimao Group said that the company has applied for 40 real estate projects in pilot cities, and 16 have been shortlisted for the "white list". Among them, the Wuhan Jinxiu Yangtze River Project has implemented the financing plan and realized the collection, and other projects are successively communicating with financial institutions with the support of local **.
In the first batch of "white list" of real estate projects in Chongqing, Jinke shares to declare projects that meet the requirements, and Jinke has confirmed that more than 20 projects have been approved to enter the "white list".
On February 4, a reporter from Beijing Business Daily learned that Country Garden has confirmed that more than 30 projects have been approved to enter the "white list", including many projects in Henan, Hubei, Sichuan, Shandong, Chongqing and other places are in the "white list" of the territory.
According to China Construction News, as of the end of January, 170 cities in 26 provinces had established a coordination mechanism for urban real estate financing, and the first batch of "white lists" of real estate projects were proposed and pushed to commercial banks, involving a total of 3,218 real estate projects.
An insider of an insuring real estate company told a reporter from Beijing Business Daily that there is no restriction on the attributes of enterprises in the "white list" declaration, whether it is a state-owned enterprise or a private enterprise, whether it is an insuring real estate enterprise or a normal operating real estate enterprise. Even if the first batch is not shortlisted, the second batch still has a chance to be selected.
On January 12, the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision jointly issued the "Notice of the State Administration of Financial Supervision of the Ministry of Housing and Urban-Rural Development on the Establishment of an Urban Real Estate Financing Coordination Mechanism", which mentioned the establishment of an urban real estate financing coordination mechanism, and the coordination mechanism is based on the development and construction of real estate projects and the qualifications, credit, finance, etc. of the project development enterprises, in accordance with the principle of fairness and justice, put forward a list of real estate projects that can give financing support, and push it to financial institutions within the administrative area.
According to regulatory requirements, there are five conditions that need to be met in order for a project to be eligible for financing support.
First, the project is under construction, including a short-term shutdown but can resume work immediately after the funds are in place, and can be completed and delivered; second, it has collateral or mortgage guarantee that basically matches the financing amount; Third, the host bank that intends to apply for the loan has been clarified, and the loan funds are subject to closed management; Fourth, the pre-sale funds have not been withdrawn, or the misappropriated funds have been recovered in a timely manner; Fifth, a plan for the use of loan funds and a plan for completion have been preliminarily formulated.
From "real estate enterprises" to "projects".
In November 2023, news that regulators are drafting a "white list" of Chinese-funded real estate developers continues to ferment, and the list may cover 50 large-scale real estate companies, including Vanke, Longfor, Country Garden, CIFI and other large-scale real estate enterprises, many of which have already been insured. At that time, the market view was still in the stage of supporting "real estate enterprises".
Now, with the implementation of the "white list", the objects of financing support have also shifted from "real estate enterprises" to "projects".
Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, said that shifting from "real estate enterprises" to "projects" is a feasible channel for the implementation of the real estate "white list". The integrity and financial data of real estate enterprises may not be able to protect the creditor's rights of financial institutions, but as long as the property rights of real estate projects can be clear, and the funds are operated in a closed manner (there is no withdrawal or evasion of funds), the creditor's rights of financial institutions can be protected. This eliminates the information asymmetry between financial institutions and real estate companies.
On January 30, the city of Nanning, Guangxi Province, announced that it had established a real estate financing coordination mechanism and pushed the first batch of 107 real estate projects to local financial institutions. The Beitou Lotus Courtyard project in the "white list" has been awarded 3300 million yuan development loan, which also marks the official landing of the first "white list" of urban real estate projects.
Since Nanning, Guangxi, Chongqing, Chengdu, Yunnan, Wuhan and other cities have recently pushed the first batch of "white lists" of real estate projects to financial institutions, among which Chongqing also has "white list" project loans. Chongqing Hechuan District Huatan International New City Yufeng Project, won the Agricultural Bank of China Chongqing Branch 3200 million yuan development loan.
Li Yujia said that in the next period of time, similar "white lists" will be issued in various places, and projects will be pushed to the financial sector, and related loans will follow, gradually forming a consensus in the market, and the spread of real estate risks will begin to be blocked, which is not only conducive to the solution of guaranteed delivery, but also conducive to the market's acceptance of off-plan housing, thereby stabilizing the real estate market.
It is worth mentioning that a total of 35 cities participated in the deployment meeting of the urban real estate financing coordination mechanism held by the Ministry of Housing and Urban-Rural Development.
Alleviate the financing problems of real estate enterprises.
Sales are blocked, profit losses are lost, and enterprises are ...... out of dangerThe survival status of major real estate companies constitutes a microcosm of the current real estate market.
According to data released by the China Index Research Institute, in January 2024, the total sales of the top 100 real estate companies will be 2,815300 million yuan, down 33 percent year-on-year3%, an increase of 1 from the same period last year6 percentage points. Among them, the monthly sales of the top 100 real estate companies decreased by 47% month-on-month7%。
For a long time in the past, scale was the reference target for the financing of real estate enterprises, and the larger the scale, the higher the front, the easier it would be to raise external financing. However, in recent years, as the real estate market has entered a period of deep adjustment, debt defaults have triggered a crisis of confidence, and the entire industry has also fallen into a vicious circle. In order to control risks, financial institutions have also significantly reduced real estate loans. In December 2023, the total non-bank financing of real estate enterprises was 56.7 billion yuan, an increase of 267%, but the year-on-year decline is still nearly two percent.
With the implementation of more loan support for real estate projects, the financing of real estate enterprises has entered a stage of substantial loosening.
In this regard, Zhang Dawei, chief analyst of Centaline Real Estate, said that the "white list" system of real estate projects is to alleviate the problem of financing difficulties for real estate enterprises, especially for the problem of "one-size-fits-all" non-financing for insuring real estate enterprises. Open up the dilemma of high-quality project financing of some thunderous real estate enterprises, and partially relieve the worries of financial institutions from the policy level, so as to complete the task of "ensuring the delivery of buildings, ensuring people's livelihood and ensuring stability". However, the targets of this rescue clearly exclude the rescue of real estate development enterprises and projects that have major violations of laws and regulations, evasion of financial debts and other problems. This undoubtedly sets the tone for the ultimate fate of such enterprises.
Zhang Dawei reminded that special attention should be paid to the fact that real estate projects entering the "white list" does not mean that they can obtain financing from financial institutions. The final decision rests with the financial institution, not the local government.
Beijing Business Daily reporter Wang Yinhao.