Pan Gongsheng: A few real estate companies have risks, the central bank corrects the excessive risk aversion of financial institutions丨First-hand

On June 2, Pan Gongsheng, deputy governor of the People’s Bank of China and director of the State Administration of Foreign Exchange, said that since the second half of last year, a small number of real estate companies have faced risks due to the unsustainable long-term “high leverage, high debt, and high turnover” business model. It also had a relatively strong spillover effect on the market. The People’s Bank of China adheres to the principles of marketization and the rule of law, cooperates with relevant departments such as housing and construction and local governments to defuse the risks of risk-exposed enterprises, timely corrects the excessive risk-aversion behavior of financial institutions, and maintains a stable and orderly real estate financing. It has increased the intensity of merger and acquisition of financial services, and supported the clearing of market risks in a market-oriented way.