Xinhua News Agency, Beijing, July 10th – The People’s Bank of China and the State Administration of Financial Supervision have announced the extension of two financial policies to provide continuous and stable support for real estate companies. The applicable period has been extended to December 31, 2024, with the aim of guiding financial institutions to extend stock financing and increase support for guaranteed delivery buildings.
In November 2022, the People’s Bank of China and the former China Banking and Insurance Regulatory Commission launched 16 financial measures to promote the stable and healthy development of the real estate market. These measures included maintaining the stability and order of real estate financing, providing financial services for guaranteed delivery of buildings, and increasing financial support for housing leasing.
According to the relevant person in charge of the People’s Bank of China, the “Sixteen Financial Measures” have played a positive role in maintaining reasonable and moderate real estate financing and resolving real estate enterprise risks. Considering the current real estate market situation, the financial management department has extended the applicable period of the relevant policies.
The extension policy focuses on supporting the reasonable extension of stock financing such as development loans and trust loans, as well as encouraging financial institutions to provide financing support for guaranteed delivery buildings.
Regarding existing financing, the policy allows for an extension of one year beyond the original regulations for loans expiring before December 31, 2024. This extension not only benefits real estate companies in terms of financing but also helps financial institutions resolve existing loan risks.
Industry insiders believe that this extension will alleviate concerns among financial institutions about new financing issued by real estate companies, creating a moderately loose financing environment and ensuring continuous and stable financial support for the industry.
In addition, the Guaranteed Building Loan Support Plan, which was set to expire in March 2023, will continue its implementation.
Since the beginning of this year, the financial management department has introduced various measures to address the financing problems of real estate companies. These measures aim to maintain stability and provide high-quality financing for real estate companies, guiding them towards a safe range and facilitating the transition to a new development model.
The Monetary Policy Committee of the People’s Bank of China recently proposed implementing policies to support rigid and improved housing demand, ensuring housing delivery, people’s livelihood, and stability. This is part of efforts to promote the stable and healthy development of the real estate market and improve the housing leasing financial policy system.
The relevant person in charge of the People’s Bank of China emphasized the importance of implementing these policies and supporting rigid and improved housing needs. It is crucial to maintain reasonable real estate financing, increase support for guaranteed delivery buildings, and promote the marketization of industry risks for the stable and healthy development of the real estate market.