CHI CB, CBIRC Support Property Market

On Nov. 23, CHI CB introduced measures to support housing market.

  • CHI CB, CHI CBIRC jointly issued notice on financial support for the stable and healthy development of real estate market, including assistance for developers and individuals.
  • Follows CHI CB, CBIRC Nov. 2022 policies to support property market, see #153260.
  • Stable Property Financing
  • Stabilize the supply of property development loans, treat State-owned and private developers as the same; strengthen credit management to ensure fund safety.
  • Support the reasonable demand for individual housing loans, reasonably setting the lower limits of down payments and interest rates based on city-specific policies.
  • Support optimizing financial services for home purchases by newcomers to cities, the criteria for first-time homebuyers should be reasonably decided in multiple dimensions.
  • Stabilize the credit supply of constuction enterprises, optimize credit service.
  • Support reasonable extension of existing financing such as development and trust loans, those due within coming six months may be allowed to extend for one year.
  • Keep bond financing stable, encourage issuers to communicate with holders in advance to make arrangements for bond redemption, support issuers to repurchase bonds.
  • Maintain the stability of financing for trusts and other asset management products, encourage those products to support the reasonable financing needs of real estate.
  • Guarantee Building
  • Support China Development Bank and Agricultural Development Bank in providing special loans aimed at ensuring housing project delivery, support overdue projects.
  • Encourage financial institutions to provide matching financing support to specific loan support projects, and help in resolving personal housing loan risks of overdue projects.
  • Matching financing should not exceed the period of the corresponding loan, and the period should not exceed 3 years, loan repayment based on last-in first-out principle.
  • Commercial banks shall not lower the risk classification of the matching financing issued to special loan support projects within half a year from the date of the notice.
  • Support Distressed Developers
  • Support mergers and acquisitions in the sector, encourage commercial banks to carry out M&A loan, banks and asset management firms issue bonds related to M&A project.
  • Explore market-oriented support methods, resolve the risk of distressed developers, resume work/delivery of projects by financial institutions, asset management firms.
  • Consumer Rights
  • Encourage reasonable extensions of mortgages borrowed by individuals affected by Covid-19, malicious defiance shall be handled according to laws and regulations.
  • Protect the personal credit rights of individuals who have deferred loans; financial institutions shall submit credit records according to the new repayment arrangements.
  • Transitional Arrangements
  • Extend the transition period arrangement of loans related to real estate development affected by Covid-19, based on the actual situation and after objective assessment.
  • Periodically optimize the M&A financing policy, accelerate the marketization of risks.
  • Housing Rental
  • Optimizing rental housing credit services, encourage financial institutions to provide financial support for the acquisition and reconstruction of affordable rental housing.
  • Broaden diversified financing channels in the rental housing market, such as bond issuance, and steadily implement pilot program for real estate investment trusts.
  • Nov. 28, 2022 Capital Market Support
  • On Nov. 28, 2022, CHI CSRC spokesman answered question on capital market support.
  • Follows CHI CSRC Nov. 2022 speech at financial street forum 2022, see #154189.
  • Decided to adjust and optimize 5 measures in equity financing, effective immediately.
  • Resume M&A, restructuring; support the financing of real estate listed companies.
  • Refinancing of real estate firms, guide funds towards policy-supported business.
  • Adjust and improve the listing policy of real estate firms in overseas markets, and allow H-share listed companies with real estate as their main business to refinance.
  • Promote the regular issuance of affordable rental housing REITs, encourage high-quality real estate firms to issue infrastructure REITs based on certain types of assets.
  • Carry out pilot program of real estate private equity investment funds, allow qualified private equity fund managers to set up real estate private equity investment funds.

Entity Types Bank; Inv Co
Reference PR 11/28/2022; RN 11/23/2022; COVID-19
Functions Compliance; Financial; Legal; Operations; Risk; Treasury
Countries China
Category Central Bank; National Regulator
Products Banking; Fixed Income; Fund Mgt; Issuance/IPO; Loan; Mortgage; REITs
Regions AP
Rule Type Guidance
Rule Date 11/23/2022
Effective Date 11/28/2022
Rule Id 154252
Linked to Rule :153260
Reg. Last Update 11/28/2022
Report Section International

Last substantive update on 11/30/2022