During a press conference held by the State Council Information Office on October 17, China’s Minister of Housing and Urban-Rural Development, Ni Hong, announced that by the end of the year, the credit limit for projects on the “white list” will be increased to 4 trillion yuan.
Since the beginning of this year, China has established a coordinated mechanism for real estate financing in cities, allowing compliant real estate projects to be included on the “white list” for financial support. Deputy Director of the National Financial Regulatory Administration, Xiao Yuanqi, added that conditions are now in place to include all commercial housing development loan projects on the “white list.” Going forward, any real estate projects that meet the “white list” criteria should be managed according to this system, ensuring that all eligible projects are included.
Xiao emphasized that commercial banks are expected to fully lend to projects on the “white list.” He highlighted the need to optimize the disbursement of loan funds to ensure that payments are made as early as possible. Currently, banks distribute loan funds to real estate project companies in batches based on construction progress, directly paying suppliers and contractors along the supply chain.
Looking ahead, Xiao indicated that, with proper coordination between banks and real estate project companies, banks could disburse all loans upfront to a regulated project fund account. Subsequent payments would then be made from this account based on actual expenditure requests, thereby expediting the funding timeline.
As of October 16, Xiao revealed that loans approved for “white list” real estate projects have already reached 2.23 trillion yuan. By the end of 2024, the amount of approved loans for these projects is expected to double, exceeding 4 trillion yuan. Relevant departments will continue to refine and enhance the financing mechanisms for “white list” real estate projects.
