The regulatory authorities issued financial policies to stabilize the real estate market.
On February 8, the people’s Bank of China and the China Banking and Insurance Regulatory Commission issued the notice on the exclusion of affordable rental housing related loans from the management of real estate loan concentration (hereinafter referred to as the “notice”), specifying that from the date of printing and distributing the notice, The relevant loans issued by banking financial institutions to affordable rental housing projects holding the certificate of approval of affordable rental housing projects are not included in the centralized management of real estate loans, and it is proposed that banking financial institutions should strengthen their support for affordable rental housing.
Securities Times · brokerage China reporter learned that it is not a new policy to exclude the loans related to affordable rental housing from the housing loan concentration management. In fact, as early as December 2020, when the central bank and the China Banking and Insurance Regulatory Commission issued new regulations on the management of housing loan concentration, a “hole” was reserved for this policy. At that time, when the system was issued, it was mentioned in the reporter’s question that in order to support the development of the housing rental market, after the corresponding statistical system is established, the loans related to housing rental that meet the definition will not be included in the concentration management.
According to another person from a major bank, although the housing loan concentration assessment was officially implemented in 2021, the supervision still encourages banks to issue housing related loans for affordable housing projects and rental housing projects. Therefore, in the past year, while reducing the overall growth rate of housing loan investment, some banks have maintained a rapid growth rate of public housing rental loan business. The official implementation of the policy adjustment is good for real estate enterprises and banks.
Close to regulators said that the loans related to affordable rental housing projects are not included in the concentration management of real estate loans, which means that the relevant loans issued by banks are no longer constrained by the concentration management indicators, and there is sufficient space to increase the credit supply of affordable rental housing projects. The notice also encourages banks to increase their support for the development of affordable rental housing in accordance with the principles of legal compliance, controllable risk and commercial sustainability. On the whole, the notice has released a positive signal of increasing financial support for the development of affordable rental housing, which helps to support the construction of China’s housing security system, promote the establishment of a housing system with multi-body supply, multi-channel security and simultaneous rental and purchase, and promote the smooth, steady and healthy development of the real estate market.
affordable rental housing accelerated development
This policy fine-tuning is a major decision and deployment of the CPC Central Committee and the State Council to accelerate the development of affordable rental housing.
The proposal of the CPC Central Committee on formulating the 14th five year plan for national economic and social development and the long-term goal for 2035 adopted at the Fifth Plenary Session of the 19th CPC Central Committee clearly pointed out that “expand the supply of affordable rental housing”. In June 2021, the general office of the State Council issued the opinions on accelerating the development of affordable rental housing, which clearly proposed to expand the supply of affordable rental housing and further strengthen financial support, including improving the loan statistics suitable for affordable rental housing, and giving differential treatment in the implementation of real estate credit management. The central economic work conference in December 2021 once again emphasized “exploring a new development model, adhering to the simultaneous development of rent and purchase, accelerating the development of long-term rental housing market and promoting the construction of indemnificatory housing”.
Since last year, all localities have taken accelerating the development of affordable rental housing as a key task of housing construction.
The National Conference on housing and Urban-Rural Construction held at the beginning of the year pointed out that in 2021, 40 cities across the country will raise 942000 sets of affordable rental housing. In 2022, the supply of affordable rental housing will be greatly increased. Focusing on large cities with net population inflow, 2.4 million sets of affordable rental housing will be built and raised throughout the year. The Ministry of housing and urban rural development also revealed recently that the supply of affordable rental housing will be expanded during the 14th Five Year Plan period, and 6.5 million new units (rooms) are preliminarily planned in 40 key cities.
is the new deal an existing arrangement?
According to a source close to the regulator, clarifying that the loans related to affordable rental housing are not included in the concentration management of real estate loans is a specific measure to implement the decision-making and deployment of the CPC Central Committee and the State Council to accelerate the development of affordable rental housing and strengthen the support of relevant financial policies. It is also an existing arrangement of the concentration management system of real estate loans.
In December 2020, the people’s Bank of China and the China Banking and Insurance Regulatory Commission issued the notice on establishing a management system for the concentration of real estate loans of banking financial institutions, which set two upper limits for the proportion of real estate loans and individual housing loans. When the system was issued, it was mentioned in the reporter’s question that in order to support the development of the housing rental market, after the corresponding statistical system is established, the loans related to housing rental that meet the definition will not be included in the centralized management.
It is understood that after the “opinions on accelerating the development of affordable rental housing” was issued in June 2021, all localities are stepping up the establishment and improvement of the joint review mechanism of affordable rental housing projects, and Issuing the confirmation letter of affordable rental housing projects for the projects that have passed the joint review. The people’s Bank of China and the China Banking and Insurance Regulatory Commission have recently established separate statistical indicators for affordable rental housing loans based on the recognition standards provided by the Ministry of housing and urban rural development, and separately counted the relevant loans that meet the conditions. After the implementation of the above measures, the conditions for implementation will be met if the loans related to affordable rental housing projects are not included in the concentration management of real estate loans.
The above-mentioned bankers told reporters that the banking industry had previously suggested to the regulatory authorities that the loans related to indemnificatory rental housing should not be included in the management of housing loan concentration. Last year, because the joint review mechanism of indemnificatory rental housing projects had not been established and improved, the regulatory assessment of housing loan concentration was included in the indemnificatory rental housing projects. After the official implementation of this policy adjustment, It will be good for banks and real estate enterprises.
Yan Yuejin, research director of the think tank center of E-House Research Institute, told the Chinese reporter of securities times and securities companies that for real estate enterprises, such policies should be accurately understood. On the one hand, the indemnificatory rental housing in this reform must have the certificate of indemnificatory rental housing project. In other words, real estate enterprises cannot identify such houses by themselves, and they must obtain the certificate of such projects before they can realize the exemption clause of housing loan concentration; On the other hand, real estate enterprises should take the initiative to actively promote such products, which are the key mortgage products promoted by commercial banks in 2022. Real estate enterprises should take the initiative to grasp such credit opportunities.
In fact, although under the assessment pressure of the concentration of real estate loans, banks slow down the pace of real estate loans, affordable housing projects and rental housing projects are expected to become rare “highlights” in real estate investment. Taking Industrial And Commercial Bank Of China Limited(601398) as an example, the semi annual report of 2021 shows that at the end of June, the loan balance of ICBC for public housing leasing business increased by 22.146 billion yuan or 26.55% compared with the end of the previous year.
real estate sales, land purchase and financing have gradually returned to normal
Zou LAN, director of the financial market department of the central bank, recently introduced the new situation and changes of the current real estate market. Recently, real estate sales, land purchase and financing have gradually returned to normal, and market expectations have improved steadily. At the end of 2021, the balance of national real estate loans was 52.2 trillion yuan, a year-on-year increase of 7.9%, 0.3 percentage points higher than that at the end of September. Among them, real estate loans increased by 773.4 billion yuan in the fourth quarter, an increase of 20.2 billion yuan year-on-year and 157.8 billion yuan more than that in the third quarter.
Zou Lan said that in the second half of last year, the risk of individual real estate enterprises such as Evergrande became explicit. Affected by this, the risk aversion of various real estate entities increased, and financial institutions also had a short-term stress response. In view of this situation, according to the deployment of the CPC Central Committee and the State Council, the financial management department took response measures at the first time, focusing on the following work: first, adhere to the principle of legalization and marketization, cooperate with the Guangdong provincial government, relevant departments and local governments, and do a good job in risk resolution of risk enterprises. Second, guide banking financial institutions to accurately grasp and implement the prudent management system of real estate finance, maintain the stable and orderly release of real estate credit, and meet the reasonable financing needs of the real estate market. The third is to issue the notice on doing a good job in M & a financial services for risk disposal projects of key real estate enterprises to guide financial institutions to support risk resolution and industry liquidation in a market-oriented manner.
Zou Lan said that one of the core characteristics of real estate is regionality. Under the management framework of the long-term mechanism of real estate, it is more to implement the territorial responsibility of the urban government and implement real estate regulation and control according to the local market situation.
\u3000\u3000 “Based on some changes in the market in the second half of last year, all aspects, especially some financial institutions, have some stress reactions based on their judgment of the market situation and risk evolution. Therefore, since late September last year, the central bank and other financial management departments have strengthened communication with relevant financial institutions to help financial institutions accurately grasp and judge the changes in the market situation and better implement the housing policy The prudent management system of real estate finance meets the reasonable financing needs of the real estate market. ” Zou Lan said.
Zou Lan said that the central bank still maintains basic stability according to the positioning that the house is used for living and not for speculation, and according to the arrangement of the long-term mechanism. According to the overall requirements of stabilizing land price, house price and expectation, the first thing to stabilize expectation is to stabilize policy expectation. Next, the central bank will fully implement the long-term mechanism of real estate, maintain the continuity, consistency and stability of real estate financial policies, steadily implement the prudent management system of real estate finance, increase financial support for Housing leasing, and implement policies to promote the virtuous circle and healthy development of the real estate industry.
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