Finance Association, Feb. 21 (Reporter Wang Haichun) Since the Ministry of Housing and Construction held a meeting to deploy the Urban Real Estate Financing Coordination Mechanism in January of this year, the implementation of the mechanism has been accelerating.

According to information recently disclosed on the WeChat account “Shandong Provincial Department of Housing and Urban-Rural Development”, all 16 cities in Shandong have now established urban real estate financing coordination mechanisms, and the 7 cities of Jinan, Qingdao, Yantai, Rizhao, Jining, Dongying, and Liaocheng have launched the first batch of projects, involving 448 projects, with financing requirements of 91.74 billion yuan. Among them, financing has already been secured in the four cities of Qingdao, Yantai, Rizhao, and Liaocheng, totaling 1,563.2 billion yuan.

The Xiamen Housing Security and Housing Administration also released news a few days ago that Xiamen promptly set up a special working group on the real estate financing coordination mechanism to study and form a list of the first batch of eligible projects and push them to banks and financial institutions. The total financing requirements of 2,229 billion yuan have been supported for the two projects.

According to information published on the official website of the Hunan provincial government, as of February 17, all 14 cities and states in the province have established real estate financing coordination mechanisms, including a total of 576 “white list” projects. Currently, 24 projects have received additional financing of 1,648 billion yuan from banks.

A number of banks are also actively connecting to improve the efficiency of project docking and review, and promote the implementation and effectiveness of real estate financing coordination mechanisms.

According to information disclosed by the Bank of Communications on February 21, up to now, the Bank of Communications has approved credit lines of nearly 20 billion yuan for projects listed under the coordination mechanism, and projects have been launched and implemented in several cities.

Also, according to the “Agricultural Bank of China” WeChat account, as of February 19, the Agricultural Bank had approved and completed the first batch of nearly 100 loan projects on the list. The loan amount had already been approved for more than 40 billion yuan, taking the lead in making initial loan investments in Chongqing, Anhui, Zhejiang, Guangxi, Shaanxi, Jiangsu, and Xinjiang.

Furthermore, according to public information, Ping An Bank has now connected more than 1,300 projects through active collaboration with local governments, housing and construction departments, and supervisory authorities.

According to information published on the official website of the Ministry of Housing and Construction, as of February 20, 214 cities in 29 provinces across the country had established real estate financing coordination mechanisms, proposed a “white list” of real estate projects in batches and promoted them to commercial banks, involving a total of 5,349 projects. According to reports, 162 projects in 57 cities have now received a total of 29.43 billion yuan in bank financing, an increase of 11.3 billion yuan compared to before the Spring Festival holiday.

According to Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, the first batch of “white list” projects had strong exemplary significance.

“This financing coordination mechanism, from enterprises to projects, is a viable channel for the implementation of a real estate 'white list'. Banks are uncertain about the integrity status of housing enterprises and the reliability of financial data, but as long as specific real estate projects can have clear property rights, closed operation of funds, and no funds drawn or escaped, they can guarantee the claims of financial institutions. This helps eliminate information asymmetry between financial institutions and housing enterprises. The first batch of 'white lists' are all good projects with excellent quality. Some of these projects have already received financing support, which will have a positive impact on the steady operation of the mechanism in the future.” Li Yujia said.

Yan Yuejin, research director of the Yiju Research Institute, believes that establishing a coordination mechanism will help the financial sector and the housing sector coordinate operations, give full play to the accuracy and timeliness of policies, and is an important measure to promote a virtuous cycle between finance and real estate.

“The relevant departments are taking the lead, which shows that the supervisory authorities attach great importance to this mechanism, and the coordination mechanism classifies housing enterprises and provides financial guidance, and is also highly practical.” Yan Yuejin said.

Also, according to the official website of the Ministry of Housing and Construction, the Ministry of Housing and Construction emphasized at a video dispatch conference on the work of the urban real estate financing coordination mechanism held a few days ago that the financing coordination mechanism is a powerful gripper for solving the current financing difficulties of housing enterprises. All regions should attach great importance to the work related to this mechanism, accurately propose a “white list” for real estate projects, and promote the continued effectiveness of the mechanism.

According to the requirements of the Ministry of Construction, all regions must form “two closed loops” when carrying out work.

First, form a closed loop of “push-feedback” work. The urban real estate financing coordination mechanism selects projects according to conditions and pushes them to commercial banks. Each commercial bank reviews and lends in accordance with regulations, and reports the “reason why it cannot be loaned” to the financial supervisory authority. The city government promptly coordinates and resolves the “white list” project, forming a closed loop of “white list” projects from promotion to feedback.

Second, form a closed loop of “issue-use-repayment” management to ensure that all funds are used for project development and construction, and strictly prevent funds from being misused for land purchases, debt repayment, or other investments.

Meanwhile, before the Spring Festival, the China General Administration of Financial Supervision and Administration also held a special conference, requesting that commercial banks take the initiative to connect with coordination mechanisms, promptly review the list of real estate projects promoted, speed up credit approval, and “meet the full requirements” for reasonable financing. The General Administration of Financial Supervision emphasized that existing problems and blockages should be promptly reported, and carefully studied and effectively resolved through coordination mechanisms.