Some real estate companies still need some time to digest the accumulated risks, and the "16 Financial Policies" will be extended until the end of next year. Real estate | Term | Risk

Release time:Apr 14, 2024 05:28 AM

On Monday evening of this week, the People's Bank of China and the State Administration for Financial Supervision and Administration issued a notice on extending the policy period related to financial support for the stable and healthy development of the real estate market, uniformly extending two policies with applicable periods in the "16 Financial Measures" for the real estate industry issued in November last year until the end of December 2024.

Zou Lan, Director of the Monetary Policy Department of the People's Bank of China, stated at a press conference today that the "Notice" is a decision made based on the current situation of the real estate market. Since the beginning of this year, the overall real estate market has shown a stabilizing trend, but the long-term risks accumulated by some real estate companies still need some time to gradually digest. Therefore, the government should guide financial institutions to continue extending the existing financing of real estate enterprises and increase financial support for guaranteed delivery of properties. At the same time, in combination with the needs of the guaranteed delivery of buildings work, the period of the 200 billion yuan guaranteed delivery of buildings loan support plan will be extended to the end of May 2024.

In recent years, some development enterprises have engaged in long-term "high leverage, high debt, and high turnover" operations, with uncontrolled expansion of asset side land, construction in progress, and diversified operating assets, resulting in high liabilities.

According to data from the financial sector, from the perspective of debt source structure, nearly 7% of the liabilities of real estate enterprises include personal advance payments for housing and upstream and downstream enterprise advances. The proportion of financial liabilities is about 31%, of which bank loans account for less than half. From the perspective of the bank's real estate credit structure, the balance of real estate loans is over 50 trillion yuan, of which the balance of personal housing loans is close to 40 trillion yuan. Relying on household income to repay loans on a monthly basis, the non-performing loan rate remains below 0.5% for a long time.

Zou Lan pointed out that for personal housing loans for properties that have already been sold but have not been completed and delivered on time, according to current laws and regulations, priority will be given to protecting the interests of homebuyers. This part of the loan may face certain risks, but the proportion of the total amount is very low and the risk is controllable. In terms of real estate development loans, the current balance is about 13 trillion yuan, of which the balance of real estate development and affordable housing construction loans is about 6 trillion yuan, with guaranteed repayment; The amount of loans undertaken by development enterprises is approximately 6 to 7 trillion yuan, but due to difficulties faced by some development enterprises, the non-performing loan ratio has increased. However, compared to the total amount of bank loans, the amount is very small.

Zou Lan stated that the financial department will adhere to the positioning of "houses are for living, not for speculation", cooperate with relevant departments and local governments to solidly ensure the delivery of buildings, people's livelihoods, and stability, meet the reasonable financing needs of the industry, and continue to create a favorable financial environment for the orderly clearance of industry risks.

"The supply and demand relationship in China's real estate market has undergone profound changes. In the past, policies introduced during the long-term overheated stage of the market have marginal optimization space. The financial sector will actively cooperate with relevant departments to strengthen policy research, improve policy accuracy based on urban policies, better support rigid and improved housing demand, and promote the stable and healthy development of the real estate market," said Zou Lan.

The UK has formed the largest exhibition group, with over 2200 companies from 28 of the top 30 countries and regions participating in the Service Trade Fair. Institutions | Organizations | Enterprises
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The National Grand Theatre has built the world's largest theater complex, and the three major buildings of the Beijing Urban Sub center have been fully completed. The museum | Beijing | Conclusion
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25 kilometers east of Beijing, the water of the Grand Canal flows leisurely. On both sides of the canal, large-scale greening is quietly spreading, and the three major buildings of Beijing's urban sub center are rising from the ground. On the 15th, the reporter visited the three major buildings that were about to be completed. The Beijing Art Center, which looks like a big curtain, shimmers with silver under the sunlight. The Grand Canal Museum seems to be covered with five sails scattered all over the roof, and the Beijing City Library, supported by 144 "ginkgo tree trunks," looks like a sea of forests. At the end of September, the "Three Major Buildings" met the conditions for completion and acceptance. Sha Gang, Deputy General Manager of the Three Major Construction Project Department of Beitou Group's Urban Sub center, introduced that as of now, the main structure and exterior facade decoration works of the three major construction projects have been fully completed. 95% of indoor electromechanical engineering has been completed, 90% of indoor decoration engineering has been completed, and 80% of outdoor municipal and landscape engineering has been completed

More than 3000 people were trapped in three trains in Mentougou mountain area. Fengsha Railway, which was damaged in rainstorm, resumed operation last night | more than 3000 people
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On the evening of August 8th, it was learned from the Beijing Railway Bureau of China that after 71 hours of emergency repair, at around 18:30 on August 8th, as the track rolling locomotive slowly passed through the Zhuwo Station of the Fengsha Railway, the Fengsha Railway finally resumed traffic. The Fengsha Railway was completed and opened to traffic on June 30, 1955. It is a mountainous railway and the first mainline railway in the Beijing Tianjin Hebei region. It is also an important channel for transporting coal from Shanxi to other regions. On July 30, affected by rainstorm for several days, some sections of Fengsha Railway located in Mentougou District of Beijing were seriously damaged. Train K1178, K396 and Z180 were stranded in the mountains, and nearly 3000 passengers and attendants were stranded. After the joint cooperation of the railway department, armed police soldiers, and firefighters, all passengers and crew members were able to escape from the trap for 5 days and arrived at Beijing West Station and Beijing Fengtai Station respectively

The Chinese Academy of Social Sciences releases major achievements on a monthly basis, and the "History | Theory | Series of the Party's Centennial Struggle Historical Experience Series" is published
The Chinese Academy of Social Sciences releases major achievements on a monthly basis, and the "History | Theory | Series of the Party's Centennial Struggle Historical Experience Series" is published

The key publication of the Central Propaganda Department's theme publication, "A Series of Historical Experience of the Party's Centenary Struggle," has been released recently. On the morning of the 4th, the Chinese Academy of Social Sciences organized a "Monthly Conference on Major Achievements of the Chinese Academy of Social Sciences" in Beijing, focusing on introducing this theoretical achievement. The "Historical Experience Series of the Party's Centennial Struggle" is a masterpiece that examines and summarizes the history of the CPC from the perspective of historical experience. It is based on the historical resolution passed at the Sixth Plenary Session of the 19th Central Committee of the Communist Party of China, deeply implementing the spirit of the 20th National Congress of the Communist Party of China, and based on the ten historical experiences accumulated from the Party's century long struggle clearly pointed out in the resolution, it is independently written from ten aspects: Party leadership, people first, theoretical innovation, independence and autonomy, the Chinese path, embracing the world, exploring and innovating, daring to struggle, united front, and self revolution. According to the introduction, the Party

The millennium old traditional customs in Nanzhao are rejuvenated, with "golden leaves" flourishing, and the body of mugwort picking during the Dragon Boat Festival | modern | tradition
The millennium old traditional customs in Nanzhao are rejuvenated, with "golden leaves" flourishing, and the body of mugwort picking during the Dragon Boat Festival | modern | tradition

During the Dragon Boat Festival, there has been a custom of picking mugwort in Chinese folk culture since ancient times. The "Jingchu Suishi Ji" from the Northern and Southern Dynasties period records: "On the fifth day of the fifth month, picking mugwort as a person, hanging it on the door to ward off poisonous gas." To this day, many regions still retain the custom of picking mugwort on the Dragon Boat Festival. In Nanzhao County, Nanyang City, Henan Province, a large number of people go up the mountains to pick mugwort around the Dragon Boat Festival every year. The collected mugwort leaves are made into various mugwort products by local enterprises and sold nationwide. Recently, the Aicao Culture Festival was held in Nanzhao County, and reporters visited several local traditional Chinese medicine enterprises. Here, the traditional custom of picking mugwort during the Dragon Boat Festival is being given new vitality by the thriving modern traditional Chinese medicine industry in the local area. The Dragon Boat Festival picking of Artemisia argyi has been given new vitality by the modern traditional Chinese medicine industry. The Dragon Boat Festival picking of mugwort has a long history of use in China. At the Xiaokong Mountain Site in Nanzhao County, archaeology