This year, our country will accelerate the promotion of "three major projects" including affordable housing, "both emergency and leisure" public infrastructure, and urban village renovation.

As one of the "three major projects", the urban village transformation is currently receiving a steady stream of financial resources. The injection of funds has made the security network for urban village transformation denser and denser, and the urban village transformation is progressing rapidly and steadily.

  Since 2023, the transformation of urban villages has become one of the focuses of real estate policy.

The transformation of urban villages benefits people's livelihood, plays a key role in improving people's quality of life and urban governance, and is an important starting point for stabilizing growth.

However, the urban village reconstruction project has the characteristics of long cycle and large capital requirements. It is a complex and arduous systematic project. Whether it can effectively solve the problem of funding sources depends on its smooth implementation.

  The Central Financial Work Conference held in October last year called for accelerating the transformation of urban villages and promoting a virtuous cycle of finance and real estate.

In terms of support funds for urban village reconstruction, in addition to the inclusion of qualified urban village reconstruction projects into the scope of local government special bond support, there are also support measures in bank financing, namely the establishment of special loans for urban village reconstruction.

  Since January 30 this year, the first batch of special loans for urban village reconstruction projects have been gradually issued.

Data recently disclosed by the China Development Bank shows that as of February 20, the bank has issued more than 36 billion yuan in special loans for urban village reconstruction, involving 223 projects in 32 cities including Beijing, Shanghai, and Guangzhou, benefiting 260,000 urban village residents. , supporting the construction of 540,000 resettlement houses.

Special loans are mainly used for pre-project work, expropriation compensation and resettlement, resettlement housing construction, and supporting infrastructure construction of resettlement housing communities.

  Special loans for urban village reconstruction have the characteristics of stable sources, large amounts of funds, low costs, and long cycles. They can solve the problems of large initial capital investment in urban village reconstruction and better match the characteristics of urban villages with long reconstruction cycles and an emphasis on comprehensive benefits.

Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, said that special borrowing is an important financial tool innovation to promote the transformation of urban villages, which is conducive to implementing the public attributes of urban village transformation and ensuring that planning goals can be achieved.

The implementation of special loans for urban village reconstruction means that the urban village reconstruction work is accelerating.

  The Mortgage Supplementary Loan (PSL) issued by the central bank is also an important source of funds for urban village renovation.

The central bank's 2023 data review shows that PSL will increase by 500 billion yuan throughout the year, providing medium and long-term low-cost financial support for policy development banks to issue loans for the "three major projects" construction projects.

In January this year, the central bank once again invested 150 billion yuan in PSL.

  In addition to the above sources of funds, the policy also encourages banking financial institutions to provide urban village reconstruction loans in accordance with the principles of marketization and rule of law, with earmarked funds and closed management.

  Debt repayment funds for urban village reconstruction projects include land transfer fees, commercial housing, affordable housing sales revenue, and property operating revenue.

From this perspective, achieving a comprehensive balance of funds requires relevant financial institutions to effectively screen projects in accordance with laws and regulations, scientifically review decisions, strengthen credit and risk management, adhere to the principles of marketization and rule of law, and properly handle the issues of promoting development and preventing and controlling risks. relationships to ensure the safety of funds.

  The fund guarantee network is getting denser and denser, which will further assist the transformation of urban villages and promote the construction of a new model of real estate development.

Judging from the announced allocation amount of special loans for urban village reconstruction, the scale of the loan is already considerable. It is expected that with the financial support, the urban village reconstruction will play a more powerful role in benefiting people's livelihood, promoting investment, and stabilizing expectations.

  Shi Lina