The State Council Information Office held a press conference at 10 a.m. this morning.

Ni Hong, Minister of Housing and Urban-Rural Development, along with officials from the Ministry of Finance, Ministry of Natural Resources, People's Bank of China, and China Banking and Insurance Regulatory Commission, introduced the relevant situation of promoting the stable and healthy development of the real estate market and answered questions from reporters.

Minister of Housing and Urban-Rural Development Ni Hong: will newly implement the renovation of 1 million sets of urban villages and dilapidated houses through monetary settlement housing methods.

Minister Ni Hong stated that through the monetization of resettlement housing, an additional 1 million sets of urban village renovations and dilapidated house renovations will be implemented. Surveys show that in just 35 large and medium-sized cities, there are 1.7 million sets of urban villages in need of renovation, with other cities also requiring renovations; there are 0.5 million sets of dilapidated houses nationwide in need of renovation. This newly proposed implementation of 1 million sets is mainly aimed at projects with mature conditions that can be expedited through increased policy efforts, mainly adopting monetary resettlement to better facilitate the public and their own choices of suitable methods.

Minister of the Ministry of Housing and Urban-Rural Development Ni Hong: By the end of the year, the crediting scale of "white list" projects will be increased to 4 trillion yuan.

Ni Hong stated that by the end of the year, the credit scale of "white-listed" projects will be increased to 4 trillion yuan. All eligible projects should strive to be included in the "white-list", with efforts made to include as many projects as possible.

Minister of Housing and Urban-Rural Development Ni Hong: By the end of September, first-tier cities adjusted purchase restrictions based on local conditions, with Beijing and Shanghai relaxing measures, Guangzhou fully cancelling, and Shenzhen partially cancelling.

Ni Hong said that since last year, the Ministry of Housing and Urban-Rural Development has given each city full autonomy in real estate regulation. In late September, the four first-tier cities respectively adjusted their real estate purchase restrictions, with Beijing and Shanghai loosening the purchase conditions, Guangzhou completely lifting them, and Shenzhen partially lifting them. This fully reflects the tailored measures and independent decision-making of each city.

Minister of Housing and Urban-Rural Development Ni Hong: Five policies support monetized resettlement housing and allow local governments to issue special bonds.

Ni Hong stated that through the method of monetized resettlement housing, an additional 1 million sets of urban village transformation and renovation of old and dangerous houses will be implemented. The main considerations include some mature conditions, urgent desire of the masses for renovation, and relatively solid preliminary work. Monetized resettlement can better meet the masses' autonomous selection of housing type and location without the need to wait for a transition period. There are two points for which projects can receive policy support: first, focus on selecting areas with strong willingness for renovation from the masses and prominent safety hazards; second, both plans of the project need to be mature: one is a mature and solid plan for expropriation and resettlement, and the other is a large balance of funds to achieve overall project balance and avoid the risk of additional local debt. The main supportive policies include 5 points: first, focus on supporting cities at or above the prefecture level; second, development-oriented and policy-based financial institutions provide special loans; third, allow local governments to issue special bonds; fourth, provide tax preferential treatment; fifth, commercial banks issue loans based on evaluations.

Minister of Housing and Urban-Rural Development Ni Hong: The coordinated development of large, medium, and small cities and small towns is an institutional arrangement to prevent the negative synergetic effects in the real estate sector.

Ni Hong stated that the “siphoning effect” is a common phenomenon in the development of cities worldwide. At different stages of development in different cities, the “siphoning effect” will have various impacts. In the process of urbanization, the Chinese government emphasizes the coordinated development of large, medium, and small cities and small towns, which is an institutional arrangement to prevent the negative synergetic effects in the real estate sector.

Minister of Housing and Urban-Rural Development Ni Hong: Urban renewal and transformation can continue to increase support on 1 million sets.

Ni Hong stated that, based on the previous renovation of old and dilapidated buildings in urban villages, an additional 1 million units will be added, and policy support will be increased through monetary means. If the previous work is done well, efforts can be further increased on 1 million units.

Minister of Housing and Urban-Rural Development Ni Hong: In order to adapt to the need for the second child, it is necessary to support local authorities to increase the housing area for the guaranteed objects and secure the bottom line of housing security.

Ni Hong stated that in order to meet the needs of having a second child and support local conditions, it is necessary to increase the housing area for the beneficiaries. City governments should optimize and improve real estate policies based on local conditions, while also increasing the level of protection to firmly secure the bottom line of housing security. By the end of this year, the plan is to enable 4.5 million young people and new urban residents to move into affordable housing.

Minister Ni Hong of the Ministry of Housing and Urban-Rural Development: From January to September, China has already built and raised 1.48 million sets of affordable housing. By the end of the year, 4.5 million people, including young people and new urban residents, will move into affordable housing.

Ni Hong stated that affordable housing is mainly based on "purchasing according to demand", with two ways of raising housing resources, one is through new construction and the other is through purchase. From January to September, China has already built and raised 1.48 million sets of affordable housing, and by the end of the year, 4.5 million people will move into affordable housing.

Minister of Housing and Urban-Rural Development Ni Hong: Solving the housing problems of young people and new urban residents is an important means to enhance the city's competitiveness.

Ni Hong said, for a city, if the youth have hope, the city has hope. If the young people have a future, the city will definitely have a future. Solving the housing problems of young people and new urban residents, allowing them to live and work in peace in this city, is the government's unshirkable responsibility and also a key means to enhance the city's competitiveness. Regarding the resolution of the housing problems of the masses, the country's major policy is to ensure on the one hand, and operate the market on the other hand, with the government taking the lead to guarantee the basic housing needs of the masses and to meet the diversified and improved needs of the masses through the market.

Minister of the Ministry of Housing and Urban-Rural Development, Ni Hong: Four characteristics embody a good house, and localities should first build affordable housing into good houses.

Ni Hong stated that the people have new expectations for the functionality of residences, and a good house should embody four aspects: first, it should be green, allowing people to live comfortably and healthily; second, it should be low-carbon, saving money and energy throughout the entire life cycle of the residence; third, it should be smart, making it convenient for people to use through modern technology; fourth, it should be safe. The next step is to incorporate the new generation of information technology, green and low-carbon technology, new products, new materials, and new processes into housing construction. Each region should prioritize the construction of affordable housing into good residences, with the government taking the lead in people's livelihood projects; at the same time, efforts should be made to transform old houses into good residences.

Minister of the Ministry of Housing and Urban-Rural Development, Ni Hong: In the future, the key for real estate and construction companies to develop will be high quality, new technology, and good service.

Ni Hong mentioned that for real estate and construction companies in the future, the key focus should be on high quality, new technology, and good service. Whoever seizes the opportunity for transformation, builds good houses for the people, and provides good services will have market opportunities and development.

Minister of Housing and Urban-Rural Development Ni Hong: China's real estate has been continuously adjusting for three years, and the market has begun to stabilize.

Ni Hong stated that China's real estate, under a series of policy influences, has been continuously adjusting for three years, and the market has begun to stabilize. The data for October will definitely show positive and optimistic results.

Minister of Housing and Urban-Rural Development Ni Hong: Full of confidence in the stabilization and recovery of the real estate market, will focus on implementation next.

Ni Hong expressed full confidence in the stabilization and recovery of the real estate market. The next step is to join forces to implement a combination of measures effectively, ensuring that the effects of these policies can be fully realized, allowing the general public to enjoy the policy dividends.

Minister of Housing and Urban-Rural Development Ni Hong: Speed up the bankruptcy reorganization or liquidation of real estate projects with insufficient capital to cover debts, truly safeguarding the legitimate rights and interests of homebuyers.

Ni Hong stated that for the tough battle to ensure housing delivery, it is necessary to focus on establishing a "white list" to address project funding issues, and also closely monitor the progress of projects. Following market-oriented and rule of law principles, tailored strategies will be applied to advance the projects and strive for early housing delivery. For projects with insufficient capital to cover debts, it is proposed to accelerate bankruptcy reorganization or liquidation based on rule of law and market principles, effectively protecting the legitimate rights and interests of homebuyers. Any illegal activities that harm the interests of homebuyers will be resolutely investigated, ensuring wrongdoers cannot escape consequences.

Minister of Housing and Urban-Rural Development Ni Hong: Focus on establishing a "white list" while pushing forward project construction progress to facilitate early housing delivery.

Ni Hong mentioned that emphasis should be placed on establishing a "white list" to effectively address project funding issues, along with closely monitoring project construction progress. Following market-oriented and rule of law principles and classifying them accordingly, efforts will be made to expedite the early delivery of housing units.

Minister of Housing and Urban-Rural Development Ni Hong: For projects with insolvency, accelerate bankruptcy reorganization or liquidation, effectively safeguarding the legitimate rights and interests of home buyers.

Ni Hong stated that for the tough battle to ensure housing delivery, it is necessary to focus on establishing a "white list" to address project funding issues, and also closely monitor the progress of projects. Following market-oriented and rule of law principles, tailored strategies will be applied to advance the projects and strive for early housing delivery. For projects with insufficient capital to cover debts, it is proposed to accelerate bankruptcy reorganization or liquidation based on rule of law and market principles, effectively protecting the legitimate rights and interests of homebuyers. Any illegal activities that harm the interests of homebuyers will be resolutely investigated, ensuring wrongdoers cannot escape consequences.

Xiao Yuanqi, Deputy Director of the Financial Regulatory Bureau: The next step is to include all loans for commodity residential projects in the "white list".

Xiao Yuanqi, Deputy Director of the Financial Regulatory Bureau, stated that since the beginning of this year, the urban real estate financing coordination mechanism will include compliant real estate projects in the "white list", and the next step is to include all loans for commodity housing projects in the "white list", achieving "all-inclusive access".

Deputy Director of the China Banking and Insurance Regulatory Commission Xiao Yuanqi: Under unanimous agreement, banks can advance all loans to the project fund management account opened by real estate enterprises.

Xiao Yuanqi stated that by optimizing the disbursement method of loan funds, they can achieve "as early as possible". In the future, in cases of mutual agreement between commercial banks and real estate project companies, all loans can be advanced to the project fund supervision account opened by the real estate company.

Xiao Yuanqi, Deputy Director of the Financial Regulatory Bureau: Implement a combination of various real estate financing tools to create an integrated scale effect.

Xiao Yuanqi stated that by effectively utilizing a combination of various real estate financing tools, an integrated scale effect is formed, enhancing precision adaptability. There are many real estate financing channels, including development loans. For example, in the first nine months of this year, financial institutions of the banking industry have newly issued more than 400 billion yuan in real estate development loans since the beginning of the year. There are also merger and acquisition loans, operational property loans, mergers and acquisitions loans for real estate enterprises, housing lease loans, as well as various financing methods such as bond investments and insurance fund equity investments. It is important to fully leverage the unique advantages of different financing tools. Furthermore, based on the financing needs of different real estate enterprises and projects at various stages, tailor various exclusive financial products to enhance the precision, timeliness, and effectiveness of financing support.

Xiao Yuanqi, Deputy Director of the China Banking and Insurance Regulatory Commission, stated that policy banks and commercial banks are allowed to provide a certain proportion of acquisition loans for the purchase of idle land.

Xiao Yuanqi stated that together with relevant departments, active research is being conducted on specific measures for policy banks and commercial banks to support the revitalization of idle land, allowing policy banks and commercial banks to provide a certain proportion of acquisition loans for idle land acquisition. The main purpose is to promote more efficient utilization of idle land, while improving and releasing the cash flow of the real estate industry.

Assistant Minister of Finance Song Qichao: The purchase of existing commodity houses with special bonds is decided independently by local governments and implemented voluntarily.

Assistant Minister Song Qichao of the Ministry of Finance stated that for the purchase of existing commodity houses with special bonds for the purpose of guaranteeing housing, this policy is decided independently by local authorities and voluntarily implemented, following the principle of legalization, and adopting a market-oriented operation method. Based on ensuring the balance of project financing benefits, local areas arrange special bonds to purchase existing commodity houses.

Deputy Minister Song Qichao of the Ministry of Finance: In terms of the specific operation of using special bonds to acquire land, the determination of acquisition prices will be reasonably established in cooperation with existing landowners and enterprises.

Song Qichao stated that special bonds are used for land storage. In specific operations, the main support is to assist various regions in combining their actual situations. With the owner enterprises of existing land, reasonably determine the acquisition price, properly handle the debt relationships involved in the recovery of existing land, reasonably define the scope of special bond projects, and promptly arrange the issuance and expenditure of special bonds.

Assistant Minister Song Qichao of the Ministry of Finance: The adjustment of real estate value-added tax policies is being implemented promptly in accordance with relevant procedures and will be announced to the public in a timely manner.

Songqichao stated that there are three main considerations for the adjustment of the next real estate value-added tax policy: first, to comprehensively grasp the rhythm of urban real estate regulation and the local fiscal revenue situation, making scientific and reasonable arrangements; second, to give certain autonomy to local authorities, maintaining policy stability and fairness; third, to effectively reduce the burdens of real estate enterprises and homebuyers, promoting the stabilization of the real estate market. Specific policies are being implemented through relevant procedures and will be promptly announced to the public.

Deputy Governor Tao Ling of the People's Bank of China: Most existing house loan interest rates will be batch lowered on October 25, and borrowers can check the results on October 26.

Tao Ling, Vice President of the People's Bank of China, stated that it is expected that the majority of existing real estate loans will be batch reduced by October 25th, meaning that on October 26th, everyone can check the adjustment results through the designated channels of the loan banks. The adjustment time for some small and medium-sized banks may be slightly later, but overall it will be completed before October 31st. The vast majority of borrowers do not need to go to bank branches to handle it. Borrowers with floating interest rates for real estate loans do not need to apply, the bank system will adjust in batches, accounting for over 90% of existing real estate loans; Borrowers with fixed interest rates for real estate loans can handle it through channels such as mobile banking and online banking.

People's Bank of China Vice Governor Tao Ling: Studying allowing policy banks, commercial banks to provide loans for the acquisition of existing land to eligible enterprises. The central bank will provide necessary refinancing support.

Tao Ling stated that the People's Bank of China is closely collaborating with relevant departments to allow policy banks and commercial banks to provide loans to eligible enterprises, acquire existing land, and the People's Bank of China will provide necessary re-lending support.

Vice Minister of the Ministry of Natural Resources Liu Guohong: Will collaborate with relevant departments to study the establishment of special loans for the purchase of existing land

Liu Guohong, Deputy Minister of the Ministry of Natural Resources, stated that revitalizing the stock of idle land is a key focus of the current work of the Ministry of Natural Resources. In terms of controlling new additions, we have suspended the supply of residential land in cities with long cycles of destocking. In terms of revitalizing existing stock, the Ministry of Finance has announced the use of special bonds for land reserves. Specifically, we will prioritize the consideration of residential and commercial land that enterprises are unable or unwilling to develop, and have not yet started construction. We will also work with relevant departments to explore the establishment of special loans for the acquisition of existing land.

Editor/Somer