Real estate financing from the three red lines to the whitelist system

Mondo Finance Updated on 2024-02-05

The real estate industry has undergone so many policy adjustments and industry changes, and in 2024, the real estate industry will move towards a whitelist financing recommendation model. In order to curb the overheating of the real estate market, a series of strict regulatory policies have been introduced, the most notable of which is the "three red lines". The three policies are: the red line of the debt ratio (the asset-liability ratio after excluding pre-sales funds does not exceed 70%), the red line of the cash short-term debt ratio (the cash short-term debt ratio is not less than 1) and the net debt ratio red line (the net debt ratio is not higher than 100%).

However, with the passage of time and changes in the market, the "three red lines" gradually exposed some problems. For example, these policies are too restrictive and may result in some quality businesses not being able to obtain adequate financing; At the same time, these policies do not take into account the actual situation of different regions and different enterprises, which may lead to unfair treatment of some places and enterprises.

The turning point of the real estate financing model in 2024 is coming, and it is decided to make policy adjustments and transform the "three red lines" into a "real estate white list". The new policy will assess the credit rating of companies to determine which ones can receive priority financing support. Such policy adjustments can not only better meet the actual needs of enterprises, but also manage risks more effectively. In the long run, real estate whitelisting will become a new trend in China's real estate market. It will promote the healthy development of the real estate market and promote the innovation and development of the industry. At the same time, it is also conducive to improving the structure of the financial market and increasing the efficiency of the allocation of financial resources. Since then, the era of unfinished buildings is coming to an end.

The transformation of real estate from the "three red lines" to the "white list" reflects the continuous deepening and optimization of the supervision of the real estate market. This is not only a major change for China's real estate market, but also an important revelation for the global real estate market.

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