At more than 9 o'clock in the evening on February 4th, China Construction News and China Real Estate News reported a blockbuster news at the same time:
At present, 26 provinces and 170 cities have established real estate financing coordination mechanismsThe first batch of real estate project financing "white lists" has been pushed to commercial banks, involving a total of 3,218 real estate projects.
The report further said that 83 projects in 27 cities have won 178$600 million in loans. The average amount of financing received per project is 21.6 billion yuan.
According to this calculation, the 3,218 projects involved in the first batch of white lists can obtain loans of nearly 700 billion yuan.
There are about 100 cities that meet the conditions and have not yet established a financing coordination mechanism, plus the second and third batches of white lists in various places, which means that through the "urban real estate financing coordination mechanism",This year, it can give developers more than one trillion yuan in new financing, and it may even reach 1More than 5 trillion!
The "2023 Statistical Report on Loan Investment of Financial Institutions" recently released by the central bank shows that:
At the end of 2023, the balance of RMB real estate development loans was 1288 trillion yuan, a year-on-year increase of 15%, the growth rate was 2 lower than the end of the previous year2 percentage points. Personal housing loan balance 3817 trillion yuan, down 16%, the growth rate was 2 lower than the end of the previous year8 percentage points. At the end of 2023, the balance of RMB real estate loans was 5263 trillion yuan, down 1% year-on-year, and the growth rate was 2 lower than that at the end of the previous year5 percentage points. Based on this, we can deduce that the new financing received by developers in 2023 will only be more than 190 billion yuan.
And this year, through the new mechanism, you can add 1 trillion yuan or even 15 trillion! For developers, this is tantamount to a charcoal in the snow, which is enough to save lives!
The so-called "Urban Real Estate Financing Coordination Mechanism" was established after the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision jointly issued the Notice on the Establishment of an Urban Real Estate Financing Coordination Mechanism on January 12, 2024.
Specifically, it refers to: in cities at or above the prefecture level, the local government will take the lead in establishing an urban real estate financing coordination mechanism. The leader of the leading group of this mechanism is the responsible comrade in charge of housing and urban-rural construction (generally the deputy mayor in charge), and the local housing and urban-rural development bureau and the dispatched agency of the State Administration of Financial Supervision are member units.
The coordination group meets regularly to assess the financing needs of local real estate enterprises, and proposes a list of real estate projects that can be given financing support (white list), and local financial institutions will provide financing.
The establishment of this mechanism has two major milestones:
First, the initiative of real estate regulation and control has been almost completely handed over to the local government. The coordination mechanism is equivalent to a wartime command, which is commanded by the local **, with the cooperation of the financial regulatory authorities and the banks. This was unthinkable before. Second, financial institutions have provided unprecedented financing support for real estate. After the announcement of the "three red lines" policy, the financing policy of real estate enterprises has shrunk across the board. Now it has entered the state of "no less than three none", and the right to financial dispatch and the right to issue development loans have been handed over to the local government to a large extent.
The so-called "three not less than" is the policy announced in November 2023, which specifically refers to: the growth rate of each bank's own real estate loans shall not be lower than the average growth rate of real estate loans, the growth rate of corporate loans to non-state-owned real estate enterprises shall not be lower than the growth rate of local ** real estate, and the growth rate of personal mortgages to non-state-owned real estate enterprises shall not be lower than the growth rate of the bank's mortgages.
The "urban real estate financing coordination mechanism" is to fully implement the "three not less than".。Its introduction will fundamentally solve the problem of the shortage of funds for developers。This is not only conducive to protecting market entities (developers), but also conducive to stabilizing housing prices, and the motivation for real estate companies to cut their positions due to a shortage of funds will be greatly reduced.
Since September 29, 2021, the central bank proposed the "two maintenances" for real estate, and the property market control policy has shifted from suppressing the property market to bailing out the market, which has lasted for more than 2 years, but the property market is still cooling down.
The property market data for January 2024 has just been released, and the degree of decline is worrying:
In this case, it is of great significance to stabilize the market that trillions of funds can rush to the property market.
Why was the "first batch of whitelists involving 3,218 real estate projects" announced on the evening of February 4?
It is closely related to the fact that Monday is coming again.
The most recent **, everyone knows. The only thing that can make the suspension of shareholders' assets shrink is the arrival of Saturday and Sunday. Once the workday begins, the market will face new tests at every turn.
Therefore, there are several important news today to support tomorrow's **. For example, the 3,218 projects just mentioned are on the whitelist. In addition to this, there is this:
As well as this:
However, financing real estate projects can only solve the problem of the supply side. On the demand side, further efforts are needed.
On January 25, the State Administration of Financial Supervision said that "it will further optimize personal housing loan policies such as down payment ratio and loan interest rate according to the city's policies".It sends a signal to further reduce the down payment and lower the mortgage rate. I hope to see these policies implemented in big cities next week.
Beijing, Shenzhen, and Shanghai, which are the most bellwether in the property market, would do well to have further and substantial loosening policies introduced. Previously, Shanghai's policy of "non-household registration singles who have paid social security for 5 years can buy houses outside the outer ring" was considered by many netizens to be too small and had little effect. In fact, the non-core areas of Beijing, Shanghai and Shenzhen should learn from Guangzhou and cancel the purchase restrictions as soon as possible.
In addition, the down payment ratio and mortgage interest rate for second homes should be further reduced.
The down payment ratio for the first home can also learn from the United States or Hong Kong, China, and break through the bottom line of 20%. With the current big data, cloud computing, face recognition, etc., the down payment ratio of the first home is reduced to 10%, and there is no big risk.
As for mortgage rates, they should also be further significantly reduced. It is hoped that the LPR interest rate in February will be significantly reduced, which will lead to a decline in mortgage interest rates.