In order to give full play to the role of operating property loans and meet the reasonable financing needs of real estate companies, the General Office of the People's Bank of China and the General Office of the State Administration of Financial Supervision recently jointly issued the "Notice on Effective Management of Operating Property Loans" to refine the management of operating property loans. The management caliber, term, quota, purpose and other requirements shall be used to guide commercial banks to carry out relevant business in accordance with laws and regulations.
The "Notice" clarifies that before the end of 2024, for real estate development enterprises with standardized operations and good development prospects, national commercial banks, on the basis of controllable risks and commercial sustainability, will not only issue operating property loans for operations related to the property itself. In addition to the actual capital needs, loans arising from the replacement of construction and purchase of properties, and shareholder borrowings, etc., operating property loans can also be issued to repay real estate development enterprises and their group holding companies (including consolidated subsidiaries) related loans and disclosures in the existing real estate field. Market bonds.
It is understood that operating property loans are a type of loan currently available to commercial banks. They are mainly invested in operating property assets that have been developed and put into operation and can generate continuous cash flow income, such as commercial complexes, shopping malls, office buildings, etc. At present, large real estate companies mostly hold some high-quality operating property assets, but the scale of mortgage loans available is limited and cannot be used to repay real estate company debts. The introduction of this policy will help large-scale high-quality real estate companies quickly revitalize their existing assets and ease the tight capital chain.
Industry insiders said that compared with real estate development loans issued during the project construction stage, operating property loans have higher amounts, longer terms, and relatively flexible uses. The "Notice" clarifies that operating property loans can be used not only to meet the operating capital needs of the loaned property during its operation, but also to replace loans and shareholder loans formed by the borrower for the construction or purchase of the property, but cannot be used to purchase land, New projects or other restricted areas.
Pang Ming, chief economist of Jones Lang LaSalle Greater China, believes that the "Notice" is more beneficial to high-quality real estate companies that focus on their main business, operate in compliance with regulations, have good qualifications, have stable operations, have development potential and have certain systemic importance. , it is more helpful to better connect "asset activation" with "liability continuation", "equity supplement" and "expected improvement" to help high-quality real estate companies with markets, prospects, competitiveness and temporary difficulties to improve. Credit, prevent and resolve risks, reduce financing costs, meet reasonable financing needs, and effectively help qualified real estate companies of different ownerships to relieve difficulties, enhance confidence, travel lightly, and develop boldly.
Since the Central Economic Work Conference was held at the end of 2023, the central government and relevant ministries and commissions have launched a series of real estate support policies, especially in terms of risk management and financial support for real estate companies, emphasizing that real estate risks should be actively and steadily resolved in 2024, and real estate companies of different ownerships should be treated equally. To meet the reasonable financing needs of enterprises, we must extend and implement the "16 Financial Support Policies" for real estate, effectively expand financing channels for private real estate enterprises, and increase their financing scale.
Pang Ming predicts that measures such as the "16 Financial Measures" and the "Three Arrows" of finance for real estate will continue to meet the reasonable financing needs of various real estate companies, and provide high-quality real estate companies with real estate development, sales, guaranteed delivery and other links, as well as affordable housing construction, Financing support will be provided in the key areas of the "three major projects" of "public infrastructure construction for both leisure and emergency use" and urban village renovation. Differentiated housing credit policies will continue to be tailored to the city and implemented accurately to better meet residents' rigid and improved housing needs. .
In addition, Pang Ming analyzed that in the long run, monetary credit and other financial policies should work closely with policies on land, finance and taxation, housing, urban planning, industry, and society, and conduct in-depth research and judgment on major trends such as the supply and demand relationship in the real estate market and the urbanization pattern. , structural changes, build a multi-level, multi-subject, and multi-channel real estate financing system, accelerate the exploration and construction of new models of real estate development, ensure low-end guarantees, mid-end support, and high-end markets, and serve to build housing that promotes both rental and purchase Institutionalize and strengthen the multi-level housing security system to help promote the stable and healthy development of the real estate market. (Our reporter Yao Jin)
Source: Economic Daily