During the National Two Sessions this year, Ni Hong, Minister of Housing and Urban-Rural Development, said that currently, 312 cities in 31 provinces have established urban real estate financing coordination mechanisms and submitted more than 6,000 "white list" projects.
As of the end of February, commercial banks had approved loans exceeding 200 billion yuan.
At the beginning of this year, the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision jointly issued the "Notice on Establishing an Urban Real Estate Financing Coordination Mechanism" (hereinafter referred to as the "Notice"), proposing to implement city-specific policies and make good use of the policy toolbox to more accurately support the reasonable financing needs of real estate projects. , and promote the stable and healthy development of the real estate market.
What is the background for the proposal of the urban real estate financing coordination mechanism?
What’s worth paying attention to?
How do localities carry out relevant work?
Recently, the reporter conducted an interview.
Help correct excessive risk aversion behavior of some financial institutions and support the delivery of real estate projects
In 2023, the transaction area of second-hand housing in my country will increase by more than 40% year-on-year; the sales area of new commercial housing will decrease by 8.5% year-on-year.
Experts analyze that the sales area of newly built commercial housing has declined, partly because housing companies have difficulties in financing and some projects under construction are overdue and difficult to deliver. Some home buyers are afraid to buy new houses, especially off-plan houses, and turn to second-hand houses.
In response to existing problems in real estate financing, the two departments jointly issued a "Notice" to establish an urban real estate financing coordination mechanism: the comrade in charge of housing and urban-rural development of the city government will serve as the team leader, and the local housing and urban-rural development department and the dispatched agency of the State Administration of Financial Supervision will serve as the team leader. Member units; regularly organize consultations with all parties, propose a list of real estate projects that can be provided with financing support based on the development and construction of real estate projects and the relevant conditions of project development enterprises, and push them to financial institutions to provide financing support.
Zeng Gang, director of the Shanghai Finance and Development Laboratory, believes that establishing an urban real estate financing coordination mechanism and promoting precise connection between real estate development companies and financial institutions will help correct excessive risk aversion of some financial institutions, promote a virtuous cycle of finance and real estate, and maintain the financial market. Steady operation; it will also help support the delivery of real estate projects, ensure the delivery of buildings, ensure the stability of people's livelihood, and boost market confidence.
Provide financing support based on projects and implement policies based on cities and projects
"Precise support" is a highlight of "Notice".
Precision is reflected in the establishment of a coordination mechanism based on cities.
Unlike in the past, where financial institutions and real estate development companies directly connected to promote financing, the urban real estate financing coordination mechanism gives full play to the leading coordination role of the city government.
"Real estate has strong regional characteristics and requires 'one city, one policy' and 'city-specific policies'." Yu Xiaofen, dean of the China Housing and Real Estate Research Institute at Zhejiang University of Technology, believes that establishing an urban real estate financing coordination mechanism will help city governments Improve negotiation efficiency and share information with the financial sector to better implement city-specific policies.
Precision is reflected in providing financing support based on projects.
The establishment of the urban real estate financing coordination mechanism does not support real estate development enterprises as a whole, but uses projects as the carrier to provide financing support.
It is understood that my country's real estate companies generally have a structure of group companies plus project companies, all of which are independent legal persons.
The debt default of a group company does not mean that the project company ceases operations, and group risks and project risks cannot be equated.
Yu Xiaofen believes that providing financing support through projects is conducive to stabilizing the expectations of real estate development companies and market expectations.
Precision is also reflected in providing financing support for project classification in different situations.
Pu Zhan, deputy director of the Policy Research Center of the Ministry of Housing and Urban-Rural Development, introduced that for projects with normal development and construction, sufficient collateral, reasonable assets and liabilities, and guaranteed repayment sources, the "Notice" highlights the word "fast" and proposes to establish a green channel for credit. Optimize the approval process, shorten the approval time limit, and actively meet reasonable financing needs; for projects that encounter temporary difficulties in development and construction but can basically balance the funds, the "Notice" proposes not to blindly withdraw loans, cut off loans, or suppress loans, and extend and adjust existing loans Repayment arrangements, new loans, etc. will be supported.
At the same time, the closed management of loan funds will be strengthened to strictly prevent credit funds from being misappropriated for land purchase or other investments, and avoid the risk of misappropriation of financing funds from the source.
"Providing financing support to projects that temporarily encounter difficulties is the key to this policy, which means that the intensity of supply-side financing needs has increased compared with before." Chai Qiang, President of the China Society of Real Estate Appraisers and Real Estate Agents explain.
All localities are rushing to form a "white list" and detailed plans to speed up the implementation of policies and achieve results.
At present, various localities are accelerating the implementation of urban real estate financing coordination mechanisms to support project development, construction and delivery, and promote the stable and healthy development of the real estate market.
"Jiangxi promotes strategic cooperation between banks and enterprises and implements information sharing." Du Taihong, director of the Real Estate Market Supervision Division of the Jiangxi Provincial Department of Housing and Urban-Rural Development, said that Jiangxi has established "a mechanism", that is, a real estate financing coordination mechanism at the provincial and municipal levels to clarify urban real estate The implementation details of the financing coordination mechanism; the establishment of "two platforms", namely the department consultation platform and the government-bank-enterprise cooperation platform.
Huang Yuguan, director of the Real Estate Development and Construction Department of the Chongqing Municipal Housing and Urban-Rural Development Commission, introduced that Chongqing immediately issued the "Implementation Rules of the Chongqing Real Estate Financing Coordination Mechanism (Trial)" to accelerate the implementation of project financing.
On January 30, the local government formed the first batch of real estate project “whitelists” and recommended 314 projects to financial institutions within the jurisdiction.
Financial institutions are also taking active action.
The relevant person in charge of the Industrial and Commercial Bank of China said that in accordance with the requirements of the coordination mechanism, it will further increase communication with government departments, strengthen precise docking with various real estate companies, improve the green approval channel within the bank, optimize the approval process, shorten the approval time, and increase the " Financing support for projects in the "white list" will promote the stable and healthy development of the real estate market.
Recently, the China Construction Bank Head Office sent six teams to 12 provinces for research. Based on the market situation and research results, a special work plan was drafted to implement "equal treatment to meet the reasonable financing needs of real estate enterprises of different ownerships".
It is worth noting that the "Notice" also proposes to establish an urban real estate financing coordination mechanism to protect the legitimate rights and interests of financial institutions.
For example, for real estate development companies and projects that have serious violations of laws and regulations, evasion of financial debts, etc., financial institutions must be reminded to prudently extend credit.
The "Notice" also emphasizes that it is necessary to further consolidate the main responsibilities of real estate development enterprises and guide real estate development enterprises to improve their own cash flow through project sales, disposal of existing assets, and introduction of investors.
Real estate development companies are urged to truly reflect their assets, liabilities, sales operations, etc. in accordance with the law, and use credit funds in compliance with regulations to further enhance mutual trust between banks and enterprises.
"This will help curb moral hazard and blind expansion in the business decisions of real estate companies." Yu Xiaofen said.
Ding Yiting (Source: People’s Daily)