Special loan measures are introduced to the "rotten tail", which shows that the official is increasing, supporting the real estate industry that supports the decline in debt crisis and the decline in sales, preventing the risk of the property market from transmitting to the risk of the property market to transmission to the transmissionOther areas.
The "bad tail building" problem has troubled the Chinese property market and becomes a factor in social instability. China will provide special borrowings through policy banks to assist developers to complete the "rotten tail building" construction.This shows that the official is increasing its efforts to support the real estate industry that has supported the debt crisis and the decline in sales.
According to the official media Xinhua News Agency on Friday (August 19), the Ministry of Housing and Urban -Rural Development, the Ministry of Finance, the People's Bank of China and other departments recently issued this measure.
The size of the official loan is not disclosed, but it is emphasized that it will focus on the construction of "preservation of the building and stabilize the people's livelihood", strictly limited the construction of residential project construction that has been sold, overdue, and difficult to deliver.
will seriously investigate and punish the issue of violations and regulations behind the "bad tail" real estate
Xinhua News Agency also quoted the relevant departments that it would seriously investigate and deal with the issues of violations of laws and regulations behind the "bad tail" real estate, and to investigate the responsibility of the institutions and personnel that misappropriated the original pre -sale funds of the project.
China has targeted the real estate market under the policy of "housing and not stir -fry" in the past few years, and introduced the "three red lines" to control the debt ratio of housing companies in 2020.The real estate market and the limited financing of developers have caused many housing companies to break the capital chain and cannot complete the project.
Beginning at the end of June this year, the "rotten tail building" problem spread throughout China and evolved into a "tide of loan".A large number of home buyers forcibly stopped paying house loans to banks because developers were unable to pay the house on time, causing concerns that the risk of the property market was transmitted to the financial field.
The Bank of China data shows that as of the end of June this year, real estate loans accounted for 25.7 % of the total credit of Bank of China.At the end of the first half of this year, the total amount of the Chinese banking industry did not repay the loan of 206 trillion yuan (S $ 41.9 trillion).
Reuters quoted people familiar with the matter on the 18th of this month that the China Banking Regulatory Commission is reviewing bank loans to developers and evaluating the impact of turmoil in the real estate industry on the financial system.
People familiar with the matter said that the China Banking Regulatory Commission also requires some developers to provide details such as cash status and the source of debt funds.Industry insiders believe that regulatory authorities to obtain this information are to formulate policies and assess risks.
The special borrowing measures for the "bad tail building" this time shows that the official should increase financing support to the real estate industry that is in trouble to prevent the risk of the property market from being transmitted to other fields.
Chen Bo, dean of Wuhan Optics Valley Free Trade Research Institute, pointed out in an interview with the United Morning Post that this measure to promote the "insured house" is a dimension for the government to stabilize the real estate market, which is equivalent to using special borrowings to handle bad debts.
He said: "This can alleviate pessimistic expectations to a certain extent, provide a kind of insurance for future buyers, and let them see that the legal rights of home buyers will definitely be guaranteed by the government."
Chinese real estate companies have long relying on the development model of high debt, high leverage, and high turnover. With the impact of the epidemic and the increase in market downward pressure, developers have not sold the money on sale, the new financing is blocked, and the fund chain has problems.
However, Chen Bo believes that providing special borrowings to housing companies and ensuring that the completion of the project is "targeted for emergencies, but it cannot eradicate problems."
He pointed out that there are great historical reasons for the turmoil facing China in the past, and the responsibility is not exactly the developer.
Chen Bo said: "In the past, developers can develop crazy only by getting enough financing; only when real estate companies are developed crazy, the government is more likely to sell land, and can provide public services and promote economic development through land finance ... The government is actually also in fact.Get favorable from the active land market. "
The continuous downturn's real estate market is dragging down the Chinese economy.In the second quarter of this year, China's GDP recorded only 0.4 %, which was the slowest growth rate of the crown disease epidemic in 2020.
Although the property market policies have been adjusted in various places, they still cannot restore market confidence.According to data released by the National Bureau of Statistics last week, real estate investment declined by 12.3 % in July, the largest decline in this year; the decline in sales area of commercial housing in the country further expanded to 28.9 %, and sales decreased by 28.2 %.
