Shou Xiaoli:

Thank you for your briefing, Mr. Ni. The floor is now open for questions. Please raise your hand before asking a question.

21st Century Business Herald: 

As far as we know, since its establishment, the urban real estate financing coordination mechanism has played a significant role in facilitating financing for property projects and ensuring the construction and delivery of houses. A recent meeting of the Political Bureau of the CPC Central Committee proposed increasing loans for white-listed real estate projects. What specific measures will the NFRA take to advance this work? Thank you.

Xiao Yuanqi:

Thank you for your question and for your interest in this work. The CPC Central Committee and the State Council attach great importance to the property sector and have made a series of crucial decisions and arrangements. Since the beginning of this year, we have worked with MOHURD to provide guidance on establishing the urban real estate financing coordination mechanism and incorporating qualified real estate projects into the white list to secure stronger support from financial institutions.

On Sept. 26, as you just mentioned, a meeting of the Political Bureau of the CPC Central Committee called for increasing loans to white-listed projects. We are currently implementing these directives by focusing on the following aspects:

First, all commercial housing project loans should be included in the white list to ensure comprehensive coverage. Established over six months ago, the white list and urban financing coordination mechanism have yielded valuable experiences and practices through collaborative efforts. A relatively complete system has been developed in areas such as government coordination and promotion, financial support, and judicial enforcement guarantees. Once included in the white list, the management of real estate projects becomes more standardized, and financing becomes more convenient and rapid, playing a crucial role in the completion and delivery of projects as well as in protecting the legitimate rights and interests of homebuyers. Let me share an example: In Zhuhai, Guangdong province, there was a residential project where some units had been sold, but the project was later halted due to various reasons. After the establishment of the urban financing coordination mechanism, corresponding financing coordination mechanisms were set up at provincial, municipal, and several other levels. Through these mechanisms, the project qualified for white list inclusion. Consequently, a state-owned bank extended an additional loan of 600 million yuan to the project. This led to the swift resumption and completion of the project, along with the simultaneous construction of supporting facilities. The project quickly became one of Zhuhai's most sought-after residential developments. The completed project's quality amenities attracted numerous homebuyers.

Following thorough research, we have determined that conditions are suitable for including all commercial housing development loan projects in the white list. Henceforth, real estate projects that meet the white list criteria should be managed according to the white list system, ensuring comprehensive inclusion. In terms of specific procedures, we will adopt both review and filing methods. For the review process, we will maintain the existing urban financing coordination mechanism for white-listed projects. Additionally, real estate project companies can consult with banks, which will conduct financing according to credit standards. Projects will then be filed through the white list mechanism and managed under the white list. As I mentioned earlier, once included in the white list, project management becomes more standardized, and financing becomes quicker and more convenient. This facilitates housing construction and helps protect all parties' legitimate rights and interests.

Second, commercial banks should provide necessary loans for white-listed projects. We have already guided banks to enhance their efforts, building on the existing task force mechanism, to implement loan disbursement progress on a project-by-project basis. This involves appropriately delegating approval authority, increasing the efficiency of approvals and disbursements, and issuing loans in a timely manner according to project construction progress. Urban coordination mechanisms should also actively coordinate with relevant parties to intensify efforts to rectify problematic projects, fulfill loan disbursement conditions, and collaborate with financial institutions to ensure effective loan review and disbursement. In principle, banks should extend all possible loans to white-listed projects that maintain compliance with requirements.

Third, we will optimize loan disbursement methods to expedite funding. Currently, commercial banks disburse loan funds to real estate project companies in batches according to project construction progress, directly entrusting payments to suppliers, contractors and other upstream and downstream enterprises. Moving forward, commercial banks under the premise of coordination can advance the entire loan amount to a project fund supervision account set up by a real estate company, and according to the usage plan provided by the real estate company. Subsequently, funds can be disbursed from the supervision account to intended recipients upon actual usage requests, advancing the timeline for fund disbursement. Once credit approval is obtained, the entire loan can be issued to the project's fund supervision account. The advantage of this approach is that loan funds can be quickly allocated to the accounts of white-listed project companies. This allows for earlier payments to upstream and downstream enterprises, such as cement and steel suppliers, as well as construction companies, ensuring that real estate and housing projects can commence construction early or ahead of schedule. Additionally, loan funds deposited into the project fund supervision account are earmarked for specific purposes and managed under strict oversight, preventing misappropriation. The loan funds are dedicated to the construction of the project and its supporting facilities, ensuring they are fully used for project completion and delivery, which helps protect homebuyers' legitimate rights and interests.

As of Oct. 16, approved loans for white-listed real estate projects totaled 2.23 trillion yuan. By the end of 2024, the approved loan amount for white-listed projects is expected to double, exceeding 4 trillion yuan. To ensure adequate financing for real estate projects and the successful completion and delivery of housing, we will continue to optimize and improve the financing mechanism for white-listed real estate projects. This will ensure all eligible projects receive prompt inclusion, loan approval and fund disbursement.

This concludes my response to this question. Thank you.