According to the People’s Bank of China and the China Securities Regulatory Commission, the People’s Bank of China, the State Administration of Financial Supervision, and the China Securities Regulatory Commission jointly held a symposium on financial institutions to study recent key tasks such as real estate finance, credit extension, and financing platform debt risk resolution. The meeting required that all financial institutions should thoroughly implement the deployment of the Central Financial Work Conference, adhere to the “two unwavering principles”, meet the reasonable financing needs of real estate companies of different ownerships equally, and not hesitate to lend, withdraw loans, or cut off loans to real estate companies operating normally.
According to reports, in the past period, the financial sector has actively cooperated with industry authorities and local governments to implement comprehensive policies from both supply and demand ends of the real estate market, maintain the stability of key financing channels such as credit, bonds, and equity, support the improvement of industry operations, and optimize and adjust personal housing loans. The policy has focused on stabilizing the real estate market and achieved good results. Recently, the financial department and industry authorities jointly held a symposium with representative real estate companies to investigate and understand the main financial needs for industry risk resolution and high-quality development.
The meeting made it clear that we must continue to make good use of the “second arrow” to support private real estate companies in bond issuance and financing; support real estate companies in reasonable equity financing through the capital market; we must continue to cooperate with local governments and relevant departments, adhere to the principles of rule of law and marketization, and increase Guaranteed financial support for housing construction will promote mergers and acquisitions and reorganizations in the industry; it is necessary to actively serve the construction of the “three major projects” such as affordable housing, accelerate the supply-side reform of real estate finance, and promote the construction of a new model of real estate development.
In this regard, Wang Qing, chief macro analyst of Oriental Jincheng, told People’s Daily Finance that recent real estate demand-side support policies have been intensively implemented, and the property market has shown some signs of stabilization, but overall it is still in the bottoming stage. At the same time, the Central Financial Work Conference called for “equal treatment to meet the reasonable financing needs of real estate enterprises of different ownerships.” As a result, this meeting will make specific arrangements for this. Comprehensively considering the current market conditions, increasing credit to real estate companies will not only provide strong support for the guaranteed delivery of properties, but more importantly, it will ease the liquidity pressure on real estate companies at the end of the year, curb the momentum of credit risk exposure, thereby stabilizing social expectations and boosting economic growth. market confidence. At the same time, on the demand side of the property market, policies will also promote the orderly relaxation of home purchase restrictions in key cities and guide residents’ mortgage interest rates to further decline.
In order to speed up the supply-side reform of real estate finance and promote the construction of a new model of real estate development, Wang Qing suggested that through special loans from the People’s Bank of China, PSL (supplementary mortgage loans) and other methods, targeted efforts should be made to increase support for the construction of the “three major projects” and stabilize the real estate industry. The growth rate of investment and infrastructure investment has maintained the momentum of macroeconomic recovery. At the same time, the new real estate development model of returning commercial housing to the market under the principle of “housing for living, not speculation” has made rapid progress.
Dong Ximiao, chief researcher of China Merchants Union, believes that promoting a virtuous cycle between finance and real estate is not only the need for the healthy and stable development of the real estate market, but also the need to prevent and resolve financial risks. Since 2022, my country’s real estate supply and demand relationship has undergone major changes. Under this circumstance, the macro-prudential management of real estate finance should be further improved, and the regulatory regulations on pre-sale funds for commercial housing should be optimized to more flexibly meet the daily use needs of real estate companies’ funds while ensuring that real estate companies’ funds are not misappropriated. At the same time, innovate new models to support the financing of real estate companies, such as encouraging banks to carry out M&A loan business in an orderly manner and supporting high-quality real estate companies to register and issue debt financing instruments in the inter-bank market.
It is also understood that this meeting also made it clear that we must strengthen confidence, continue to exert our efforts, and achieve long-term results, continue to increase policy implementation and work advancement, and persistently create a good monetary and financial environment; we must implement cross-cyclical and counter-cyclical adjustments Requirements: efforts should be made to strengthen the balanced supply of credit, and overall consideration should be given to credit supply in the last two months of this year and the beginning of next year, so as to promote the stable growth of my country’s economy with the stability of credit growth; it is necessary to optimize the capital supply structure, revitalize existing financial resources, and increase investment in major projects. Financial support for strategies, key areas and weak links will enhance the sustainability of financial support for the real economy.