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in order to meet the reasonable financing needs of the real estate industry, the central bank and the state financial supervision administration have issued new policies.

on the evening of september 29, the people's bank of china and the state administration of financial supervision issued two notices to extend the deadlines of some real estate financial policies. the first is to extend the "people's bank of china and china banking and insurance regulatory commission's notice on doing a good job in current financial support for the stable and healthy development of the real estate market" notice" (yinfa [2022] no. 254) to support the reasonable extension of existing financing such as development loans and trust loans. the applicable period is extended to december 31, 2026; second, the "general office of the people's bank of china and the state administration of financial supervision and administration" if the relevant policies of the general office's notice on the management of commercial property loans (yinbanfa [2024] no. 8) have an applicable period, the applicable period will be extended to december 31, 2026.

on november 23, 2022, the central bank and the former china banking and insurance regulatory commission jointly issued "yinfa [2022] no. 254" to support the reasonable extension of existing financing such as development loans and trust loans. for existing financing such as development loans and trust loans for real estate companies, on the premise of ensuring the safety of creditor's rights, financial institutions and real estate companies are encouraged to negotiate independently based on commercial principles, and actively provide support through existing loan extensions, adjustment of repayment arrangements, etc., to promote projects completed delivery. from the date of issuance of this notice, if the loan matures within the next six months, it may be allowed to be extended for one more year beyond the original regulations. the loan classification may not be adjusted, and the loan classification submitted to the credit reporting system shall be consistent with it.

this means that existing financing such as development loans and trust loans due between november 23, 2022 and may 23, 2023, can be extended for one year to repay.

now, after the central bank and the state financial supervision administration issued a notice to extend the period of some real estate financial policies, as long as the principal and interest of the above-mentioned loans have not been repaid, commercial banks can further extend the above-mentioned development loans and trust loans while ensuring the safety of the bonds. by the end of 2026, this move will more effectively alleviate the cash flow situation and loan principal and interest repayment pressure of real estate companies.

the reporter learned that behind this, it cannot be ruled out that the recent sales pressure of real estate projects has led to relatively slow sales repayments by developers. this move by relevant departments will help reduce the capital turnover and debt repayment pressure of real estate development companies, and provide real estate companies with stable operations. stronger support.

data released by the national bureau of statistics show that in the first eight months of this year, the sales area of ​​newly built commercial housing nationwide was 606 million square meters, a year-on-year decrease of 18.0%; the sales volume of newly built commercial housing was 5.97 trillion yuan, a decrease of 23.6%. during the same period, indicators such as real estate investment, completion of construction, and funds in place for real estate companies continued to show negative growth, indicating that real estate companies are under relatively high financial pressure and require further policy support to ease their financial constraints.

at the same time, the notice issued by the central bank and the state administration of financial supervision to extend the period of some real estate financial policies will also help real estate development companies further revitalize existing assets and increase the operating space for capital acquisition to alleviate capital turnover pressure.

the reporter noticed that the "yinbanfa [2024] no. 8" issued on january 24, 2024 mentioned that operating property loans can be used for the maintenance, transformation, decoration and other operations related to the property itself during the operation period. the loan, shareholder loan, etc. formed by the replacement borrower for the construction or purchase of the property shall not be used for land purchase, new construction projects or other restricted areas. the purpose of an operating property loan should be clearly stated before it is extended. before the end of 2024, for real estate development enterprises with standardized operations and good development prospects, national commercial banks can also issue operating property loans to repay the enterprise and its group holding companies (including consolidated subsidiaries) existing real estate related loans and open market bonds.

previously, some people in the real estate industry revealed to reporters that in the past few years, many real estate development companies have invested in the construction of hotels, shopping malls, office buildings and other commercial real estate in central areas of certain cities and new urban areas/tourist attractions with large passenger flow. nowadays, many projects are in the operating period. if these assets can be effectively revitalized and developers can obtain new loan funds, their debt repayment default risk will undoubtedly be reduced.

with the new policy coming out on the evening of september 29, commercial banks can issue operating loans to real estate development companies that meet the above conditions before the end of 2026 (extended by 2 years from the original policy) on the basis of controllable risks and sustainable business. property loan repayment of loan and bond principal and interest, etc. this move will help real estate developers and commercial banks have longer time to conduct business negotiations and properly complete commercial real estate project due diligence and asset value assessment, thereby creating more ample opportunities for companies to revitalize existing operating property assets and expand financing channels. operating environment and solve the current capital turnover bottleneck of real estate enterprises.

reporters have learned from many sources that on september 29, the central bank and the state administration of financial supervision issued a notice to extend the deadline of some real estate financial policies. on the one hand, it extended the repayment period of outstanding development loans and trust loans for real estate companies, significantly reducing the burden on real estate companies. on the one hand, it gives real estate companies more time to negotiate with banking institutions to "revitalize existing operating property assets" and further expand operating property loan financing channels to repay the principal and interest of loans and bonds. this will reduce the debt risk and capital liquidity pressure in the real estate market. effectively solve the problem and promote the stable development of the real estate market.

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