Source: Brokerage China Author: He Jueyuan

The meeting emphasized that based on the "government guidance, market-based operation" approach, and drawing on the experience of the earlier pilot program, we will strive to promote the policy of subsidized housing loans and accelerate the de-stocking of commodity housing. We will strengthen institutional safeguards and internal and external supervision, adhere to voluntary participation, demand-based ordering, and reasonable pricing, ensure commercial sustainability, strictly prevent the addition of local implicit debt, and effectively prevent moral risks.

Reporters at the scene learned that the People's Bank of China and the China Banking and Insurance Regulatory Commission are currently formulating a notice on the implementation of subsidized housing loans, clarifying regulatory policies and operational procedures.

The implementation of subsidized housing loans must adhere to market-oriented operations to ensure reasonable pricing.

The development of the real estate industry is related to the actual interests of the people, economic operation, and financial stability. The establishment of subsidized housing loans and encouraging and guiding financial institutions to support local state-owned enterprises to acquire already-built inventory commodity housing for subsidized housing distribution or leasing in accordance with market-oriented, rule-based principles is an important measure for the financial sector to implement the Central Political Bureau's decision on digesting the inventory of existing housing and optimizing the increment of new housing and promoting the development of a new mode for real estate development. It is conducive to accelerating the de-stocking of commodity housing through market-oriented means, increasing the supply of subsidized housing, helping to deliver housing units and the "white list" mechanism.

Pan Gongsheng pointed out in summarizing his speech that the implementation of subsidized housing loans must adhere to market-oriented operations to ensure reasonable pricing. Cities that are willing to participate can focus on six tasks.

One is to strengthen overall coordination and improve work mechanisms.

Second, to identify 1 to 2 local state-owned enterprises with relatively strong professional capabilities as the acquisition subjects.

Third, to establish strict system norms for project screening, purchase, and distribution.

Fourth, to arrange appropriate financial and tax policy support at the local level.

Fifth, to dynamically grasp the demand for subsidized housing distribution and leasing, guide the market-oriented selection of acquisition targets and cooperative banks by the acquisition subjects.

Sixth, to strengthen supervision of the loan funds of the acquisition entity and the funds obtained by the real estate company from sales. The audit should be conducted after the project has been implemented for a period of time.

A notice on the implementation of subsidized housing loans is being prepared.

The meeting emphasized that financial institutions and relevant units should thoroughly implement the deployment of the Central Political Bureau and the State Council Executive Meeting, have a profound understanding of the populism and political nature of real estate work, and not only liberate their ideas and broaden their thinking but also steadily push forward. Based on the "government guidance, market-based operation" approach, and drawing on the experience of the earlier pilot program, we will strive to promote the policy of subsidized housing loans and accelerate the de-stocking of commodity housing. We will strengthen institutional safeguards and internal and external supervision, adhere to voluntary participation, demand-based ordering, and reasonable pricing, ensure commercial sustainability, strictly prevent the addition of local implicit debt, and effectively prevent moral risks.

For the key points of the subsidized housing loan policy, Zou Lan, director of the Monetary Policy Department of the People's Bank of China, pointed out at the meeting that they can be summarized as "precision support, voluntary participation, demand-based ordering, and reasonable pricing."

Reporters at the scene learned that the People's Bank of China and the China Banking and Insurance Regulatory Commission are currently formulating a notice on the implementation of subsidized housing loans, clarifying regulatory policies and operational procedures. Li Wenhong, director of the Large Bank Supervision Department of the China Banking and Insurance Regulatory Commission, revealed at the meeting that the regulatory authority will continue to fully cooperate with the People's Bank of China in this work and promote the digestion of inventory of commodity housing. It is hoped that national banks will deeply study and carefully grasp the relevant requirements for subsidized housing loans, scientifically and reasonably determine loan amounts, terms, interest rates, and repayment methods.

The pilot effect of the leasing housing loan support plan is significant.

At the meeting, the people's governments of Jinan, Tianjin, Chongqing, Zhengzhou, and the Industrial and Commercial Bank and China Construction Bank respectively delivered speeches based on their earlier pilot experience, and the participating cities and financial institutions conducted in-depth exchanges on the promotion of subsidized housing loans.

In early 2023, the People's Bank of China created the leasing housing loan support plan, and carried out pilot projects in 8 cities, such as Chongqing, Jinan, Zhengzhou, Changchun, Chengdu, Fuzhou, Qingdao, and Tianjin, to support market-oriented, large-scale acquisition of existing housing and expanding rental housing supply.

Currently, the leasing housing loan support plan has been incorporated into the policy for re-lending of guarantee housing and will be fully promoted nationwide. Zou Lan stated that after the guarantee housing re-lending policy document is issued, the original support plan will no longer be implemented, and the interest rates and term of the already issued re-lending funds will remain unchanged.

Ren Qinghu, Deputy Mayor of Jinan City, introduced at the meeting that the "Leasing Housing Loan Support Plan" has brought "real silver and gold" resources to promote the disposal of inventory commodity housing, cultivate and develop the housing rental market, and help accelerate the establishment of a new model for real estate development and a housing system featuring "leasing and purchasing together." In more than a year, Jinan City has purchased 53 leasing projects, with a total of 30,500 housing units and 2.1 million square meters of housing, with a total investment of about 23.3 billion yuan. The city has obtained commercial bank credit lines of 14.277 billion yuan and issued loans amounting to 6.443 billion yuan.

Wang Hongxun, Deputy Mayor of Zhengzhou City, revealed at the meeting that the next step is to comprehensively carry out the acquisition of inventory commodity housing for use as guarantee housing, and to issue supporting policies as soon as possible, disclose housing information, and organize registration for allocation or sale.

Editor/Lambor