In order to implement the deployment requirements of the Central Economic Work Conference and the Central Financial Work Conference, treat real estate enterprises of different ownership types equally in meeting their reasonable financing needs, support the normal construction of real estate projects under construction, and safeguard the legitimate rights and interests of the vast number of home buyers, the Ministry of Housing and Urban-Rural Development and the National Financial Regulatory Administration recently jointly issued the "Notice on Establishing a City-Level Real Estate Financing Coordination Mechanism" to precisely support the reasonable financing needs of real estate projects and promote the steady and healthy development of the real estate market.

This is the news that the reporter learned on the 12th from the Ministry of Housing and Urban-Rural Development and the National Financial Regulatory Administration. The Notice specifies that the leading and coordinating role of city people's governments shall be brought into play, a city-level real estate financing coordination mechanism shall be established in cities at the prefecture level and above, the real estate market situation and real estate financing needs shall be assessed, difficulties and problems existing in real estate financing shall be coordinated and resolved, and, in accordance with the principles of fairness and justice and by comprehensively taking into account the development and construction status of real estate projects and the relevant circumstances of project development enterprises, a list of real estate projects eligible for financing support shall be proposed and pushed to financial institutions so as to provide financing support.

The Notice requires that financial institutions shall conduct assessments in accordance with the principles of marketization and rule of law; for projects under normal development and construction with sufficient collateral, reasonable assets and liabilities, and guaranteed sources of repayment, a green channel for credit granting shall be established, approval processes shall be optimized, approval time limits shall be shortened, and reasonable financing needs shall be actively met. For projects that have temporarily encountered difficulties in development and construction but whose funds are basically balanced, loans shall not be blindly withdrawn, cut off, or pressure-withheld; support shall be provided through means such as extending existing loans, adjusting repayment arrangements, and granting new loans.

The Notice emphasizes that the city-level real estate financing coordination mechanism shall strengthen overall work coordination and information sharing, do a good job in financing guarantees, and provide support for financial institutions in granting financing. The principal responsibility of real estate development enterprises shall be further consolidated, real estate development enterprises shall be guided to improve their own cash flow through means such as project sales, disposal of existing assets, and introduction of investors, and they shall be urged to use credit funds in compliance with regulations so as to further enhance mutual trust between banks and enterprises.

Industry insiders believe that the establishment of this mechanism helps to distinguish the debt risks of group companies from the development and operation risks of project companies, more precisely support the reasonable project financing needs of real estate development enterprises, orderly advance the normal development and construction of real estate projects, and promote the steady and healthy development of the real estate market.