China News Service, Beijing, February 5 (Reporter Pang Wuji) Recently, many places in China have intensively released the first batch of "white lists" of real estate projects. Entering the “white list” will help projects obtain financing. According to official arrangements, the real estate financing coordination mechanisms established in various regions will push a "white list" of real estate projects that can provide financing support to commercial banks within their respective administrative regions.
Experts in the industry believe that the rapid implementation of the real estate "white list" in various regions will effectively alleviate the problem of financial constraints among real estate companies, support project development, construction and delivery, and promote the stable and healthy development of the real estate market.
On January 30, Nanning, Guangxi Province announced that it had established a real estate financing coordination mechanism and pushed the first batch of 107 real estate project "white lists" to local financial institutions. On the 31st, Chongqing Municipality stated that it had sorted out the first batch of real estate project “whitelists” through the real estate financing coordination mechanism, including a total of 314 projects, involving financing needs of approximately 83 billion yuan (RMB, the same below).
Since then, Yunnan, Hubei, Chengdu and many other places have successively issued “white lists” of local real estate projects. Information recently released by China's Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision shows that as of the end of January, 170 cities in 26 provinces in China have established urban real estate financing coordination mechanisms and proposed the first batch of real estate project "whitelists" and pushed them to Commercial banks are involved in a total of 3,218 real estate projects. After receiving the list, commercial banks reviewed the projects according to regulations and have issued loans totaling 17.86 billion yuan to 83 projects in 27 cities.
Many real estate companies also released relevant information saying that some of their projects have entered the financing "white list", including some real estate companies that have encountered temporary difficulties. The reporter learned that Sunac has currently had more than 90 projects shortlisted for the first batch of "white lists", involving cities including Beijing, Tianjin, Chengdu, Chongqing, Zhengzhou, Shenyang, Qingdao, Wuhan, Kunming, etc.
Shimao Group said that 16 of its real estate projects have entered the "white list". These 16 projects are mainly distributed in provinces and cities such as Guangdong, Hubei, Chongqing, Jiangsu, Tianjin, Liaoning and Shandong. Country Garden also stated that it has confirmed that more than 30 projects have been approved to enter the "white list".
Zhang Dawei, chief analyst of Centaline Real Estate, pointed out that many real estate projects are in good condition. Previously, they were dragged down by the group's debt, leading to the suspension of construction. Now that funds come in, they can be quickly revitalized.
Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, believes that the transformation of financing support from enterprises to projects is a feasible channel for the implementation of the real estate "white list". It is difficult for banks to fully grasp the integrity status of real estate companies, real financial data and other information. However, as long as the property rights of specific real estate projects are clear and the funds are closed (no funds are transferred or evacuated), the creditor's rights of financial institutions can be protected. This can Effectively eliminate information asymmetry between financial institutions and real estate companies.
It only took one week from the official deployment of the real estate financing coordination mechanism on January 26 to the implementation of the mechanism. Li Yujia believes that such a fast speed is to send a positive signal to the market, stabilize the financing cash flow of housing enterprises, and block the spread of risks to sound operating companies. This is an important part of preventing and resolving real estate risks.
Many experts also reminded that entering the "white list" of a real estate project does not mean that financing can be obtained immediately. Financial institutions also need to make judgments and screenings based on project conditions. Only projects with good and positive assets can get loans.
Zhang Dawei believes that the implementation of loan support for "white list" real estate projects will help open the financing window for some high-quality projects, distinguish corporate risks and project risks, improve the liquidity of real estate companies, and promote a virtuous cycle of real estate and finance. However, care needs to be taken to prevent the "whitelist" from being abused, or excessively expanded, and losing its risk filtering significance. (over)