The Paper:

Could you discuss the progress and achievements of the real estate financing coordination mechanism since its inception? What areas of concern remain? Thank you.

Xiao Yuanqi:

I'll defer to Ms. Liao, who has been directly involved in this work, to address these questions.

Liao Yuanyuan:

Thank you. In January of this year, the Ministry of Housing and Urban-Rural Development and the NFRA jointly issued guidelines for local governments to establish urban real estate financing coordination mechanisms. To ensure the effective implementation of the mechanisms, our two ministries set up a national task force in April to jointly concentrate on the work, while also guiding local governments to establish their own task forces to carry out related work. In June, with the approval of the State Council, the NFRA and the Ministry of Housing and Urban-Rural Development jointly issued a notice introducing several optimization measures to improve the efficiency and quality of the whitelist project recommendations. These measures are intended to further leverage the role of the urban financing coordination mechanism, address legitimate financing needs for real estate projects, and support timely and good-quality housing delivery.

The urban coordination mechanism requires cities to take primary responsibility and centers on specific projects. Through collective efforts, the mechanism has effectively supported the financing of real estate projects, achieving phased results. Currently, commercial banks have approved 5,392 projects on the "whitelist," with approved financing totaling nearly 1.4 trillion yuan. The mechanism has ensured timely funding for whitelisted projects that meet the criteria, playing a positive role in facilitating project completion and delivery, safeguarding the legitimate rights and interests of homebuyers, and stabilizing the real estate market.

Currently, to ensure the timely delivery of housing projects, urban coordination mechanisms are comprehensively gathering information on ongoing real estate projects within their jurisdictions that are under construction and have been sold, but not yet been delivered. For projects that need financing support through the whitelist, but have not yet met the criteria, the urban coordination mechanisms are urging banks to provide targeted advice and recommendations, and real estate enterprises to take timely measures to rectify problematic projects. Meanwhile, local governments are urged to strengthen coordination to ensure that projects meeting the whitelist criteria are promptly included in the program.

Since the beginning of this year, the NFRA has continuously guided financial institutions to provide real estate financing services through multiple channels. By fully utilizing various policy measures, including the urban coordination mechanism, banking institutions' financing of the real estate sector has maintained a steady and increasing trend. At present, the balance of real estate development loans has increased by over 400 billion yuan since the beginning of the year, commercial property loans have seen a 19% year-on-year increase, and merger and acquisition loan balances have increased by 21% year on year. From January to July, commercial banks issued a total of 3.1 trillion yuan in new personal housing loans, effectively supporting the rigid and improving housing demands of residents.

Next, the NFRA will resolutely implement the decisions and arrangements of the Party Central Committee and the State Council regarding real estate work, continue to promote the fulfillment of responsibilities among local governments, real estate enterprises and financial institutions in collaboration with relevant departments, and better leverage the role of the urban coordination mechanism. It will guide financial institutions to continuously improve real estate financial services, supporting the stable and healthy development of the real estate market. Thank you.