On October 17th, the State Council Information Office held a press conference to discuss measures for promoting the stable and healthy development of the real estate market. During the event, Xiao Yuanchi, the Deputy Director of the Financial Regulatory Administration, outlined several specific policy initiatives from the financial sector aimed at fostering a healthier real estate environment. He highlighted four key areas of focus:

First, there will be a strategic approach to combining various real estate financing tools to create a synergistic effect and enhance their adaptability. Xiao explained that there is a wide range of financing tools available in real estate. For instance, bank development loans have seen an increase of over 400 billion yuan since the beginning of the year, totaling more than 4 trillion yuan by the end of September. Other options include personal mortgage loans, operational property loans, and acquisition loans—where banks provide support for real estate companies acquiring other assets. Additionally, financing can come from bonds, with financial institutions able to invest in bonds issued by real estate firms and insurance companies using their funds for equity investments. The key is to leverage the unique strengths of these financing tools, which are precisely targeted to meet different demands. Tailoring specific financial products to the unique financing needs of various real estate companies and projects at different stages will enhance the timeliness and effectiveness of financing support.

Secondly, there will be active collaboration with relevant departments to explore concrete measures for policy banks and commercial banks to support the activation of idle land resources. Xiao pointed out that this initiative is a holistic policy involving cooperation among multiple departments—such as Housing and Urban-Rural Development, Natural Resources, Finance, and the People’s Bank of China—to collectively reactivate unused land. They are considering allowing policy banks and commercial banks to issue loans for the acquisition of such idle land, primarily to encourage more efficient use of these resources while simultaneously improving the cash flow for the real estate sector.

Third, regarding the “16 Financial Policies” and operational property loans, there are plans to extend these initiatives until the end of 2026. Additionally, adjustments will be made to the interest rates on existing housing loans and the down payment ratios for first and second homes, with the Financial Regulatory Administration and the People’s Bank of China working closely on these changes.

Lastly, the financial institutions will leverage their expertise in information and financial management to provide real estate companies with specialized services, including financial consulting and project design. This aims to assist these firms in reinforcing their asset-liability management and enhancing their financial stability and sustainability.