China to launch real estate financing coordination mechanism-Xinhua

China to launch real estate financing coordination mechanism

Source: Xinhua

Editor: huaxia

2024-01-12 19:19:30

BEIJING, Jan. 12 (Xinhua) -- Chinese authorities have announced a plan to establish a financing coordination mechanism for the real estate sector.

The mechanism will aim to satisfy the legitimate financing needs of real estate projects precisely, while also supporting the stable and sound growth of the country's real estate market, according to the plan, which was released by the Ministry of Housing and Urban-Rural Development and the National Financial Regulatory Administration.

Based on comprehensive assessments of real estate projects and their developers, the mechanism is expected to generate lists of projects eligible for financing assistance, according to the plan.

Financing approval processes will be expedited for projects that are making smooth progress and have sufficient collateral, reasonable liabilities and guaranteed repayment sources, per the plan.

For projects that are experiencing temporary difficulties but maintaining a basic fund balance, the mechanism will prevent the hasty withdrawal, suspension and withholding of loans. It will provide support by means of loan extensions, rescheduled repayments and the issuance of new loans.

The plan also encourages real estate developers to enhance cash flows and utilize credit funds in compliance with regulatory requirements.