the central bank supports the acquisition of existing land "special bonds bank loans" to ease the financial pressure on real estate companies
2024-09-24
한어Русский языкEnglishFrançaisIndonesianSanskrit日本語DeutschPortuguêsΕλληνικάespañolItalianoSuomalainenLatina
on september 24, the state council information office held a press conference to introduce the relevant situation of financial support for high-quality economic development. on the same day, in addition to issuing policies to reduce existing mortgage loans, down payments, and reserve requirements, the central bank also proposed to support the acquisition of existing land of real estate companies in order to help distressed companies.
pan gongsheng, governor of the people's bank of china, said: "the central bank will support the acquisition of real estate companies' existing land. on the basis of using some local government special bonds for land reserves, we will study allowing policy banks and commercial banks to lend to support qualified companies to acquire real estate companies' land in a market-oriented manner, revitalize existing land, and ease the financial pressure on real estate companies. when necessary, the people's bank of china can provide policy support."
industry insiders believe that the central bank's release of heavy-weight mortgage and financial policies is a rare "gift package" given by the financial sector to the real estate market on the eve of national day, and it also means that the revitalization of real estate companies' stock land has entered a substantive stage. in particular, from the perspective of policy tools, the "special bonds + bank loans" model has enhanced support for revitalization.
"special bond + bank loan" model supports acquisition
pan gongsheng said: "the central bank will support the acquisition of real estate companies' stock of land. on the basis of using some local government special bonds for land reserves, we will study allowing policy banks and commercial banks to lend to support qualified companies to acquire real estate companies' land in a market-oriented manner, revitalize stock of land, and ease the financial pressure of real estate companies. if necessary, the people's bank of china can provide policy support."
regarding the central bank's statement on the acquisition of stock land, yan yuejin, deputy director of shanghai e-house real estate research institute, believes that the central bank has clarified a series of policies to revitalize stock land, which is to further implement the work orientation of "revitalizing stock and optimizing increments". at the same time, this also means that the work of revitalizing the stock land of real estate companies will enter the substantive stage. especially in terms of policy tools, two policy tools have been very clear this time, namely the "special bonds + bank loans" model. this has significantly enhanced the ability and strength of fiscal and financial resources to revitalize stock land. from this perspective, the support for revitalizing stock land has been significantly strengthened.
li yujia, chief researcher at the housing policy research center of the guangdong provincial institute of urban and rural planning, said that the study on allowing policy banks and commercial banks to provide loans to support qualified enterprises in the market-based acquisition of land by real estate companies was a deployment made at the "may 17" meeting. in fact, it is to help troubled enterprises and provide financial support.
it is reported that as early as may 17 this year, at the regular policy briefing held by the state council information office, dong jianguo, vice minister of the ministry of housing and urban-rural development, proposed to properly dispose of and revitalize the stock of land. the stock of land that has not yet been developed or has been started but not completed should be properly disposed of and revitalized through government acquisition, market circulation transfer, and continued development by enterprises, so as to help real estate companies alleviate difficulties and reduce debts and promote efficient use of land resources.
at that time, liu guohong, vice minister of the ministry of natural resources, revealed that the government was preparing to introduce policy measures to properly dispose of idle land and revitalize existing land, and to support local governments in properly disposing of idle existing residential land that had been sold through methods such as recovery and acquisition based on actual conditions.
liu guohong introduced that there are three main aspects to revitalize the stock of land. on the one hand, we must support enterprises to optimize development, eliminate obstacles to development and construction, reasonably exempt liability for breach of contract caused by natural disasters and epidemics, and allow enterprises to reasonably adjust planning conditions and design requirements in accordance with procedures to better adapt to market demand. on the other hand, we must also promote market circulation and transfer, give play to the role of the secondary land market, support advance registration transfer and "transfer with mortgage", and encourage transfer or cooperative development. the third is to support local governments in accordance with the principle of "ordering according to needs" to recover idle land at a reasonable price for the construction of affordable housing, and promote it from aspects such as increasing financial support, providing tax support, and simplifying work processes.
activate stock land and help real estate companies
at present, in addition to expanding financing channels and accelerating sales realization, revitalizing land and operating assets is the only way for real estate companies to alleviate difficulties. in particular, revitalizing existing land can add new sources of income, thereby alleviating corporate financial pressure, optimizing asset structure, increasing asset returns, and enhancing corporate sustainable development capabilities.
it is worth noting that the "decision of the central committee of the communist party of china on further comprehensively deepening reforms and promoting chinese-style modernization" adopted at the third plenary session of the 20th central committee of the communist party of china also proposed: "optimize the use of urban industrial and commercial land, accelerate the development of the secondary market for construction land, promote mixed development and utilization of land, and rational conversion of land use, and revitalize existing land and inefficient land." it can be seen that revitalizing existing land and inefficient land will help improve the coordination of urban land use structure and promote the connotation-oriented, intensive and green development of cities.
regarding the central bank's mention that some local government special bonds will be used for land reserves, yan yuejin said that in the past, special bonds "involving housing and land" were subject to strict boundary control, but this year the support has been significantly strengthened. in fact, it is also a fiscal tool to digest real estate companies' inventory of houses and undeveloped land.
"when using special bonds, local banks can implement supporting policies, which will help leverage such land acquisitions and digest existing land more quickly. objectively, it will have a positive effect on digesting real estate companies' inventory and accelerating capital recovery, and will be beneficial to resolving real estate companies' subsequent debt pressure and operating with ease," said yan yuejin.
the interest relationship is complex and policy incentives need to be strengthened
according to li yujia, chief researcher at the housing policy research center of the guangdong provincial urban and rural planning institute, at present, special bonds are used for land acquisition and storage, mainly for affordable housing land, to solve the problem of insufficient funds for local governments to add new affordable housing in land reserves. this is an existing policy. as for the designated use of special bonds, it was originally used for new infrastructure, and now the scope has been expanded to affordable housing. in the future, it may be expanded to industrial-city integration, park development, etc., "but if it is to be expanded to commercial housing land, it will probably be a bit difficult."
li yujia further explained that the current problem is that many developers' stock of land has been mortgaged, and it is difficult to repay debts. some have hidden debts that are difficult to discharge. in addition, developers are unwilling to sell at very low prices. even if they want to sell, few entities enter the market to buy. on the one hand, there are cheap and well-located plots of land in the land auction market. on the other hand, some of the original plots have supporting construction, commercial offices or self-holding. under the market conditions at the time, these planning requirements were affordable, but now it is difficult to afford, and it is difficult to modify the plan.
it can be seen from this that the revitalization of existing land and low-efficiency land involves many land rights holders, complex interest relations, large capital investment, and a long revitalization cycle. the enthusiasm of business entities needs to be improved, and policy incentives need to be further strengthened.
in addition, at today's press conference, pan gongsheng said that the people's bank of china will continue to improve its macro-monetary policy on real estate, mainly from a financial perspective, to support risk management and healthy development of the real estate market. at the same time, li yunze, director of the state financial supervision and administration bureau, also said that banks and insurance institutions will be guided to actively cooperate in resolving real estate and local government debt risks.
yuan xiuli, a financial reporter of beijing news shell
edited by yang juanjuan and proofread by yang li
