Financial Services Association, Feb. 19 (Reporter Gao Ping) This morning, the Agricultural Bank updated the new progress of the implementation of the urban real estate financing coordination mechanism. The bank implemented loans for urban real estate financing coordination mechanism projects in many places. Last night, ICBC also updated the implementation progress of the urban real estate financing coordination mechanism. Furthermore, after the Spring Festival, Zheshang Bank and others also joined the “army” of banks that disclosed the implementation of urban real estate financing coordination mechanisms.

A number of industry insiders told the Financial Federation reporter that it is expected that in the future, more banks will disclose the progress of the implementation of the urban real estate financing coordination mechanism, and more real estate projects will receive financing support. Furthermore, it is expected that the 2024 housing policy will be treated equally, meet the reasonable financing needs of real estate enterprises with different forms of ownership, effectively expand financing channels for private housing enterprises and increase the scale of financing.

Details of ICBC and Agricultural Bank loan implementation for the post-Spring Festival renewal coordination mechanism project

Earlier this morning, the Agricultural Bank revealed new progress in implementing loan investment for real estate financing coordination mechanism projects in many cities. As of February 19, the Agricultural Bank had approved and completed the first batch of nearly 100 loan projects, with an approved loan amount exceeding 40 billion yuan, taking the lead in achieving initial loan investments in Chongqing, Anhui, Zhejiang, Guangxi, Shaanxi, Jiangsu, and Xinjiang.

The Agricultural Bank explained the loan approval and loan investment for the listed projects in Hangzhou, Nanning, Xi'an, etc., and stated that it will further improve the efficiency of project docking and review, effectively promote the implementation and effectiveness of real estate financing coordination mechanisms, and accurately and efficiently meet the reasonable financing needs of real estate enterprises.

Last night, ICBC also updated the loan implementation status for the new coordination mechanism project. The Industrial and Commercial Bank said that the bank's various branches have acted quickly, and the multi-city coordination mechanism project loans have been implemented effectively, and the implementation situation in Fujian, Guangzhou, Henan and other places was explained. Among them, the Jinjiang branch of the Fujian Industrial and Commercial Bank invested 188 million yuan in development loans according to project progress and corporate funding requirements. The Industrial and Commercial Bank said that the next step is to promptly review the list of real estate projects promoted, shorten the approval period, and meet the reasonable financing needs of housing enterprises with different ownership systems on an equal basis under the conditions of the coordination mechanism.

Announcing progress in implementing coordination mechanisms, banks continue to expand

In addition, a number of banks recently disclosed the implementation of coordination mechanisms after the Spring Festival. According to information released by Guangfa Bank on February 18, since the end of January 2024, Guangfa Bank has actively connected with coordination mechanisms to promote host bank projects, covering 17 branches (30 cities) including Chongqing, Kunming, Chengdu, Nanning, Wuhan, and Zhengzhou, with a total number of 1,781 projects. Five projects have already been launched in the promotional project list, involving a financing amount of 1,675 billion yuan. At the same time, 5 projects have been connected to the promotion project list, involving development loan financing requirements amounting to 2.66 billion yuan, and an approval amount of 1.2 billion yuan has been completed.

Zheshang Bank said on February 18 that it has set up a special working class on urban real estate financing coordination mechanisms as soon as possible, and 35 domestic branches have also set up separate work classes to actively connect and fully evaluate the list of real estate projects promoted. Up to now, a list of 24 projects has been connected, providing 2.5 billion yuan in financing and 3.1 billion yuan in intended credit.

In fact, around the Spring Festival and during the Spring Festival, many banks took active action to speed up the implementation of urban real estate financing coordination mechanism projects. Up to now, the six major banks of industry, agriculture, China, construction, communications, and postal storage, as well as stock banks such as China CITIC Bank and Everbright Bank, have all announced the implementation of coordination mechanisms.

More production projects are expected to receive financing support in the future

Zhou Maohua, financial market analyst at Everbright Bank, told the Finance Association reporter that several banks have successively published and obtained “white list” data for real estate projects, mainly implementing city-specific policies and precise regulation of real estate. Through the “white list”, support policies can be promoted to be implemented and effective as soon as possible, the financial pressure on housing enterprises can be relieved as soon as possible, construction can be started to guarantee housing construction and delivery as soon as possible, and promote the recovery of real estate as soon as possible.

“According to the Ministry of Housing and Construction, by the end of January, commercial banks had issued loans totaling 17.86 billion yuan to 83 projects in 27 cities. In the first batch of real estate projects, 84% of the projects were developed by private housing enterprises and mixed ownership housing enterprises.” Real estate analysts at Guosheng Securities believe that the urban real estate financing coordination mechanism will differentiate between group company debt and project company development and operation risks to a certain extent and ease pressure on housing companies' cash flow; on the other hand, it will also reduce the risk of project shutdown, protect the rights and interests of buyers, and enhance the confidence of buyers.

Industry insiders believe that with the gradual implementation of the “white list” of the first batch of financing support projects in various regions at the end of January and the disclosure of the implementation status of their connected real estate financing projects, it is expected that more projects will receive financing support in the future. Ma Hong, a senior researcher at the Guangkai Chief Industry Research Institute, told the Finance Association reporter that it is expected that the 2024 housing policy will be treated equally, meet the reasonable financing needs of real estate enterprises with different forms of ownership, effectively expand financing channels and increase the scale of financing for private housing enterprises, and handle related housing enterprise risks more accurately.