The Notice on Making the Current Financial Support for the Steady and healthy development of the real estate Market is referred to as the 16 real estate finance articles. The Notice covers the upstream and downstream financing of real estate, such as development loans, trust loans, merger and acquisition loans, guaranteed delivery of buildings, rescue of real estate enterprises, loan extension, loans for construction enterprises, leasing financing, personal mortgage loans and credit investigation. A message, caused widespread concern in the industry, Jingtai to help you interpret the policy focus.

Policy: Both state-owned and private housing enterprises are treated equally in development loans

Interpretation: The Circular proposed to stabilize the real estate development loans, adhere to the "two unswerving", state-owned, private and other types of real estate enterprises equal treatment. Financial institutions are encouraged to focus on supporting the steady development of real estate enterprises with sound governance, focus on main businesses and good qualifications. Support project host banks and syndicated banks in the lending mode, strengthen the management of the whole process of loan approval, issuance and recovery, and effectively guarantee the security of funds.

Encourage the development of loans to private housing enterprises transfusion. Under the previous market conditions, banks did not dare to invest in most private enterprises. After the policy is issued, they will support the reasonable financing of private housing enterprises.

The implementation of relevant measures will improve financial institutions' risk appetite and financing atmosphere for private housing enterprises, and alleviate the rapid contraction of private housing enterprises' credit.

Policy: Support individual housing loan reasonable demand

Interpretation: "Notice" proposed to support individual housing loan reasonable demand. We will support local governments in implementing differentiated housing credit policies on the basis of national policies and municipal policies, reasonably determine local individual housing loan down payment ratios and lower limits on loan interest rates, support rigid and improved housing demand, and encourage financial institutions to take into account their own business conditions, customers' risk profile and credit conditions. Reasonable determination of individual housing loans specific down payment ratio and interest rates. Support financial institutions to optimize housing financial services for new citizens, reasonably determine the standards of individual housing loans for new citizens who meet the purchase conditions for their first houses, evaluate the credit level of new citizens in a multi-dimensional, scientific and prudent way, and improve the convenience of borrowing and repayment.

This policy continues the previous cut housing loan interest rates to support rigid and improved housing demand. At the same time, the policy again emphasizes the importance of city-specific policies. Eligible cities are expected to speed up the pace of lowering mortgage interest rates. Cities that have already lowered commercial loan interest rates will continue to adjust and optimize according to the actual local situation.

Policies: Support rational extension of existing financing such as development loans and trust loans

Interpretation: "Notice" clear, to maintain the basic stability of bond financing. We will support high-quality real estate enterprises in issuing bonds for financing. We will encourage professional credit promotion institutions to provide credit increase support for the issuance of bonds by real estate enterprises with overall financial health and facing short-term difficulties. Bond issuers are encouraged to communicate with holders in advance and make arrangements for bond redemption funds. If it is really difficult to make payment as scheduled, reasonable arrangements such as extension and replacement shall be made through consultation to take the initiative to defuse risks. Support bond issuers to repurchase bonds in domestic and overseas markets.

At the same time, we will keep the financing of trust and other capital management products stable. We will encourage trust and other asset management products to support reasonable financing needs for real estate. With the help of various financing channels such as real estate development loans, trust loans and bond financing, the project delivery and financial pressure of real estate enterprises will be effectively eased.

Policy: Support development-oriented policy banks to provide special loans for "building guarantee"

Interpretation: The Circular proposes to support the China Development Bank and Agricultural Development Bank to issue special loans of "guarantee and delivery of buildings" to the borrowers who have been reviewed and filed in accordance with relevant policies, arrangements and requirements, in an efficient and orderly manner, in accordance with laws and regulations, and in a closed operation with special funds for the purpose of supporting the construction and delivery of overdue residential projects.

At the same time, after the special loan support projects have clarified the arrangement of creditor's rights and debts, special loans and the judicial guarantee for new supporting financing, financial institutions, especially the main financing commercial banks of individual housing loans for the projects or the syndicates led by them, are encouraged to provide new supporting financing support for the special loan support projects in accordance with the market-oriented and law-based principles. We worked to defuse the risks of unsold individual housing loans.

Since the middle and end of August, many departments have introduced measures to save "rotten end buildings" through special loans from policy banks, promoting the completion and construction area of commercial housing in the country in the following two months, and it is expected that there is still room for further improvement of real estate construction indicators.

This regulation is not only conducive to the real estate enterprise insurance out of trouble, more conducive to reduce the risk of credit default to financial institutions, to ensure that home buyers can get the property on time, also can resolve some conflicts caused by real estate disputes.

Policy: Expand diversified financing channels in rental and leasing market

Interpretation: "Notice" proposed to optimize the housing rental credit service, expand the housing rental market diversified financing channels. Guide financial institutions to focus on increasing credit support for self-owned property housing rental enterprises with independent legal operation, clear business boundaries, and professional real estate investment and management capabilities, reasonably design loan terms, interest rates and repayment methods, and actively meet the medium - and long-term capital needs of enterprises.

Housing leasing enterprises will be supported in issuing direct financing products, such as credit bonds and guarantee bonds, specifically for the construction and operation of rental housing. Commercial banks are encouraged to issue financial bonds to support housing leasing to raise funds to increase loans for housing leasing, development and construction, and loans for business purposes. We will steadily carry out trials of real estate investment trusts (REITs).

Loans issued by commercial banks for affordable rental housing projects will not be included in the concentration management of real estate loans, that is, they will not occupy the loan quota. In addition, they will support the development of REITs(real estate investment trusts), which means that everyone invests money in a fund and the fund invests money in the real estate market. For example, it is a form of fund that rents out real estate, industrial parks, business districts and so on. The advantage of this product is that it has good liquidity, it is convenient to purchase and redeem like a fund, and it can obtain the income from investing in fixed assets. From this perspective, we can focus on the investment opportunities of financial products like REITs in the future.

"We will adhere to the position that housing is for living in, not speculation, and accelerate the establishment of a housing system featuring multi-subject supply, multi-channel support, and both rental and purchase," the report said. The environment of the real estate industry has changed fundamentally, and the core of the short-term policy is to stabilize the real estate. This time, the "financial article 16", superimposed some recent positive policies, to enhance the confidence of the industry injected a heart tonic.