China News Service, January 31 (China News Finance Reporter Zuo Yukun) The first loan of the "white list" of real estate projects was implemented in Nanning City, and the first batch of 314 "white lists" of real estate projects in Chongqing have been pushed to the bank... In the past two days, progress has been reported in the “whitelist” of real estate financing in various places.
The Ministry of Housing and Urban-Rural Development has previously revealed that it will accelerate the implementation of the urban real estate financing coordination mechanism and achieve results. Loans can be obtained after the first batch of project lists are completed before the end of this month. This "white list" that promotes accurate connection between real estate companies and financial institutions is considered to be able to greatly increase the willingness of financial institutions to support real estate companies.
Data map: Aerial photography of Nanning’s numerous real estate projects. Photo by Chen Guanyan
The two western cities took the lead in launching the
"The reporter learned from the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision that after the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision held a deployment meeting on the urban real estate financing coordination mechanism, all localities acted quickly and implemented it. At present, Nanning City, Guangxi has established a real estate financing coordination mechanism. The first batch of 107 real estate projects in the 'white list' were pushed to local financial institutions. The Beitou Lotus Garden project in the 'white list' has received a development loan of 330 million yuan from Minsheng Bank Nanning Branch."
On the evening of January 30, the news published by China Construction News, which is in charge of the Ministry of Housing and Urban-Rural Development, attracted attention, marking the first loan from the "white list" of real estate projects to be landed in Nanning.
"The Beitou Lotus Courtyard project belongs to the suburban market of Nanning. There are actually two phases. The second phase is currently in the construction stage, which also shows that the current funds are in place, which is conducive to the start of construction of such projects." E-House Research Institute Research director Yan Yuejin said that the scale of the projects disclosed this time is 300 million. From the perspective of development loan support, it is expected that the range will be around 200-500 million, which can generally meet the funding needs. This will also help advance the start, completion and delivery of real estate in 2024.
Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, believes that "the project has obtained a development loan" is an important message. This means that the "white list" will exist in the form of a project list system. The projects entering the list must meet the requirements set by the Ministry of Housing and Urban-Rural Development and be the result of mutual verification between the housing and financial management departments.
On January 31, the news came again: in accordance with the requirements of the special deployment meeting of the Ministry of Housing and Urban-Rural Development, Chongqing has sorted out the first batch of 314 real estate project "whitelists" through the real estate financing coordination mechanism, with financing needs of approximately 83 billion yuan. Involving 22 financing institutions. On January 30, the project "white list" has been pushed to 28 major banks including large banks within the jurisdiction, joint-stock banks, off-site city commercial banks, and three municipal corporate banks.
Liu Shui, corporate research director of the China Index Research Institute, said that commercial banks will evaluate projects in the "white list" based on project status and financing support standards. On the one hand, for projects with reasonable assets and liabilities and guaranteed repayment sources, banks will optimize the approval process and shorten the approval time, so that financing loans will be implemented as soon as possible. On the other hand, new loan support will also be flexibly provided to projects that have temporary funding difficulties but can maintain a balance of funds.
"The 'white list' of real estate projects in Nanning and Chongqing in the west has been the first to be implemented continuously, which shows that these cities responded quickly, established and operated the real estate financing coordination mechanism quickly, and were fully prepared." Liu Shui said.
Data map: Real estate projects under construction. Photo by China News Service reporter Zhang Bin
Financing policies are intensively introduced
"Whitelist" has been the focus of attention in the real estate field recently. The Urban Real Estate Financing Coordination Mechanism Deployment Meeting held by the Ministry of Housing and Urban-Rural Development on January 26 emphasized the need to accelerate the implementation of the urban real estate financing coordination mechanism, support the development and construction of real estate projects, and meet the reasonable financing needs of real estate companies of different ownerships without discrimination.
The meeting also further targeted financing support to "projects" and proposed that in view of the current financing difficulties for some real estate projects, all localities should focus on projects, study and propose a list of real estate projects that can provide financing support, and coordinate the distribution of financial institutions within their respective administrative regions. Loans accurately and effectively support reasonable financing needs.
It is understood that the meeting clarified that projects that can obtain financing support need to meet five conditions: 1. The project is under construction, including projects that are temporarily suspended but can be resumed, constructed and delivered when the funds are in place; 2. The project has the same amount of financing as Basically matching collateral; 3. Identify the loan sponsoring bank and accept the closed supervision of loan funds; 4. The pre-sale funds have not been withdrawn or the pre-sale funds withdrawn have been recovered; 5. There are preliminary loan uses and projects Completion plan.
On January 27, Guangzhou issued a document stating that it would establish a real estate financing coordination mechanism, build a government-bank-enterprise communication platform, and promote accurate docking between real estate development companies and financial institutions. As a result, Guangzhou became the first city to implement a real estate financing coordination mechanism.
Earlier, after the Central Financial Work Conference at the end of October 2023, there were rumors in the market that regulatory agencies were drafting a "white list" of real estate companies, but the list was not finally released. Li Yujia believes that the most critical problem is that neither the housing construction management department nor the financial management department can obtain accurate information about the financial information and operating conditions of real estate companies.
"From enterprises to projects, it is a feasible channel for the implementation of the real estate 'white list'." Li Yujia believes that the integrity and financial data of real estate enterprises may not be able to protect the claims of financial institutions, but as long as the property rights of real estate projects are clear and the funds are closed, they can It can protect the claims of financial institutions and eliminate information asymmetry between financial institutions and real estate companies.
This is exactly what the competent authorities and localities are currently trying to practice.
Li Yujia predicts that similar "white lists" will be released in various places in the near future and projects will be pushed to the financial sector. Related loans will also follow, gradually allowing the market to form a consensus and the spread of real estate risks will begin to be blocked. It is not only conducive to guaranteeing the delivery of the property, but also conducive to enhancing the market's acceptance of off-plan properties, thereby stabilizing the real estate market.
"The 'white list' of real estate projects in other cities will continue to be implemented in the future. As more real estate project loan support is implemented, the effect of policies to support project financing will gradually appear, which will help improve the liquidity of real estate companies and help ease the problem of real estate loans. The tightening situation and the expansion of real estate investment will help promote a virtuous cycle of real estate and finance." Liu Shui said. (over)