Central Bank: keep real estate credit stable and orderly investment to maintain the healthy development of the market

On October 15, the People's Bank of China held a press conference on financial statistics for the third quarter of 2021, with Ruan Jianhong, director and spokesman for the Department of Investigation and Statistics, Sun Guofeng, director of the Department of Monetary Policy, and Zou Lan, director of the Department of Financial Markets, attending and answering reporters' questions. Whether the central bank is likely to follow up on the temporary relaxation of real estate credit management and other market concerns were also answered one by one at the conference.

Zou Lan, director of the Financial Markets Division of the People's Bank of China, said that since the 19th National Congress, the central government has insisted on the positioning of the house is to live in, not to speculate on, and insisted that real estate is not to be used as a short-term stimulus to stimulate the economy, and insisted on stabilizing the price of land, stable housing prices, and stabilizing the expectations, and accelerated the establishment of a long-term mechanism for real estate, in order to prevent and defuse the risk of the real estate "grey rhino While preventing and resolving real estate "gray rhinoceros" risks and realizing the stable and healthy development of the real estate market, it has also vigorously promoted the structural transformation and high-quality development of China's economy, and reduced the overall level of financial risks. The central government's strategy and guidelines on real estate regulation and control are the long-term guidelines for us to do a good job in real estate finance.

Data-wise, the amount of personal housing loans issued in the first three quarters of this year remained stable, basically matching the amount of commercial residential sales in the same period. Among them, house prices in a few cities have risen too fast, and personal housing loan disbursement has been subject to some constraints, and the rate of house price increase has been curbed. After the stabilization of housing prices, the supply and demand of housing loans in these cities will also return to normal. Recently, the risk exposure of individual large real estate enterprises, the risk appetite of financial institutions for the real estate industry has dropped significantly, and there has been a consistent contraction behavior, with the growth rate of real estate development loans seeing a relatively large decline. This short-term overreaction is a normal market phenomenon, and similar phenomena have occurred in the interbank market and the credit bond market after the risk exposure of Baoshang Bank in 2019 and the debt defaults of Yongxiang and Brilliance last year.

In addition, some financial institutions for the 30 pilot real estate enterprises "three lines and four files" financing management rules there are some misunderstandings, will require "red file" enterprises interest-bearing liabilities balance shall not be added, misunderstood as the bank shall not issue a new development loan, enterprise After the sales return to repay the loan, the original should be reasonable support for new projects can not get a loan, but also to a certain extent caused some of the enterprise capital chain taut.

In response to these circumstances, the People's Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) have convened a symposium on real estate finance at the end of September to guide major banks in accurately grasping and executing a good system of prudent management of real estate finance and to keep real estate credit in a stable and orderly manner, and to safeguard the stable and healthy development of the real estate market.

Sourced from the People's Bank of China