The Paper.cn:
The PBC and other financial management authorities have taken some measures in response to new situations and new changes in the real estate market. What about the effects? Thank you.
Zou Lan:
In the second half of 2021, the risks of individual real estate enterprises such as China Evergrande Group appeared. Affected by that, all kinds of real estate market entities tended to avoid risks and financial institutions demonstrated short-term stress responses. According to the arrangements of the CPC Central Committee and the State Council, the financial management departments took swift actions and carried out the following work. First, upholding law-based and market-based principles, we cooperated with the Guangdong provincial government, as well as relevant departments and local governments to defuse the risks of those enterprises. Second, we instructed financial institutions in the banking industry to get a precise understanding of, and comply with, the prudential management system of real estate financing. The banking industry should maintain an orderly and stable supply of real estate credits and meet the reasonable financing needs of the real estate market. Third, the PBC released its Notice on Financial Services for Mergers and Acquisitions of Risk Disposal Projects of Major Real Estate Enterprises to guide financial institutions to support risk dissolution and industry clearing in market-based manners.
Through the concerted efforts of all parties, recently, real estate sales, land purchases and financing, among other areas, have gradually returned to normal. The market expectations have steadily improved. According to statistics, at the end of 2021, outstanding real estate loans nationwide were 52.2 trillion yuan, up by 7.9% year on year, a growth rate 0.3 percentage points higher than at the end of September. Specifically, new real estate loans in the fourth quarter last year hit 773.4 billion yuan, an increase of 202 billion yuan year on year, and 157.8 billion yuan over the third quarter.
Going forward, the PBC will firmly implement the decisions and arrangements of the CPC Central Committee and the State Council, follow the principles of the Central Economic Work Conference, and act on the principle that housing is for living in, not for speculation. Following the requirements to explore a new development model, we will put in place a long-term mechanism for the real estate industry and maintain the continuity, consistency and stability of real estate financial policies. The PBC will continue to implement the prudential management system of real estate finance, ramp up financial support for rental housing and adopt city-specific policies to ensure a virtuous cycle and healthy development of the real estate sector. Thank you.
