Home » The mechanism is “new”, operates “fast” and supports “stability” – Observation on the implementation of the urban real estate financing coordination mechanism – Xinhuanet Client

The mechanism is “new”, operates “fast” and supports “stability” – Observation on the implementation of the urban real estate financing coordination mechanism – Xinhuanet Client

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Urban Real Estate Financing Coordination Mechanism Shows Promising Results

As of February 20, 214 cities in 29 provinces across the country have rolled out urban real estate financing coordination mechanisms, and the early results are showing promising signs. The mechanism is deemed as “new” and operates “fast” while providing “stability” during the implementation process, according to industry experts.

The Coordination mechanism, introduced jointly by the Ministry of Housing and Urban-Rural Development and the State Administration of Financial Supervision, aims to provide precise financing support for the development and construction of real estate projects. The mechanism also aims to alleviate liquidity difficulties and risks, boost market confidence, and promote the stable and healthy development of the real estate market.

“This mechanism is different from previous direct connections between financial institutions and real estate development companies. It has greater innovation in specific implementation,” said Chai Qiang, president of the China Society of Real Estate Appraisers and Real Estate Brokers.

One of the key innovations of the mechanism is the emphasis on a “white list” of real estate projects that can receive financing support. The list is proposed on a city-by-city basis, strengthening local territorial responsibilities and emphasizing measures based on local actual conditions. This approach ensures that financing support is tailored to specific projects and local conditions.

Since the announcement in January, relevant departments have been working tirelessly to accelerate the deployment and implementation of the urban real estate financing coordination mechanism. The implementation process has been faster than expected, with multiple coordination and dispatch meetings held to drive progress.

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Banks have also been proactive in connecting with real estate projects listed on the “white list.” They have established green credit channels to speed up loan reviews and provide financial support as soon as possible.

The mechanism also provides support for projects that encounter temporary difficulties in development and construction. Banks are extending existing loans, adjusting repayment arrangements, and providing new loans to ensure the normal operation of key projects and add confidence to the development of the industry market.

Looking ahead, each city government will focus on guarantees and risk prevention and control to ensure that all funds are used during project development and construction. The aim is to maintain the stable and healthy development of the real estate market.

The urban real estate financing coordination mechanism is showing early promise in providing much-needed support for the real estate industry. With its innovative approach, speed of implementation, and focus on stability, it is expected to continue driving positive results for the sector.

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