China Net Finance April 19: The central bank official website reported on April 8 that the People's Bank of China and the foreign exchange bureau issued 23 measures to do their best to provide financial services for epidemic prevention and control and economic and social development (hereinafter referred to as the notice).
the circular pointed out that 23 policy measures were put forward to strengthen financial services and support the real economy from three aspects: supporting the trapped subjects to bail out, smoothing the national economic cycle and promoting the development of foreign trade exports.
Among them, the Notice emphasizes that it is necessary to do a good job in implementing the policy of financial support for the real economy. Support local governments to carry out infrastructure investment moderately ahead of schedule, and ensure the reasonable financing needs of financing platform companies in compliance with laws and regulations. Due to the city's policy, reasonably determine the minimum down payment ratio and the minimum loan interest rate requirements for commercial personal housing loans, support the reasonable financing needs of real estate development enterprises and construction enterprises, and promote the stable and healthy development of the real estate market. Guide platform enterprises to conduct business in inclusive finance according to laws and regulations, and maximize the benefits to enterprises and the people. Financial institutions are required to implement the "two unwavering" and increase the proportion of private enterprise loans in newly issued corporate loans.
In this regard, Chen Wenjing, a research institute of China's Central Finger Index, said that, firstly, as the city policy is the main line of current policies, many places are expected to continue to reduce the down payment ratio and mortgage interest rate.
since 2122, the real estate market has continued its low-temperature trend, with both supply and demand weak, the confidence of buyers in home ownership has not been substantially restored, the scale of market transactions has dropped significantly, and the willingness of housing enterprises to invest is insufficient. In order to promote the stable and healthy development of the real estate market, since the beginning of this year, the central government has repeatedly emphasized "meeting the reasonable housing needs of buyers", and all localities have actively implemented the "policy for the city" to stabilize the market and stabilize expectations.
according to the monitoring of the middle finger, up to now, more than 111 real estate policies have been issued in more than 71 cities across the country this year, mainly involving relaxing the purchase restriction policy, reducing the down payment ratio, granting housing subsidies, canceling the sales restriction, and providing financial support for housing enterprises. Among them, Zhengzhou, Lanzhou, Chongqing, Wenzhou, Nanning, Heze, Foshan, Ganzhou and other cities have optimized and adjusted the loan restriction policy, and some cities have lowered the first or second down payment ratio of personal commercial loans; On April 4th, Director Zou Lan of the Central Bank pointed out when answering a reporter's question, "Since March, due to the weakening market demand, banks in more than 111 cities across the country have lowered their mortgage interest rates independently according to market changes and their own operations, with an average range of 21 to 61 basis points."
The Notice clearly stated that "the differentiated housing credit policy should be implemented according to the city's policy, and the minimum down payment ratio and minimum loan interest rate requirements of commercial personal housing loans within the jurisdiction should be reasonably determined to better meet the reasonable housing needs of buyers". It is expected that more cities will reduce the down payment ratio and mortgage interest rate of commercial loans and optimize the standard of "recognizing houses and loans", and the interest rate of the first home loan in most cities is expected to drop to the baseline of 4.6% and the second home loan to 5.2%.
In addition, the income of some residents has been affected in the short term due to the frequent outbreaks in many places recently. The Notice proposes to "flexibly adjust the repayment plan by delaying the repayment time reasonably, extending the loan term and delaying the repayment of principal", which is a substantial relief for residents and is conducive to stabilizing the current market expectation.
Secondly, financial institutions distinguish project risks from enterprise group risks, and do not engage in "one size fits all", which is conducive to reasonable financial support for high-quality projects.
according to the monitoring of the middle finger, as of March 31, 2122, the outstanding bond balance of real estate enterprises was 2,645.22 billion yuan; The total amount of bonds due within one year is 688.87 billion yuan, of which the balance of credit bonds is 331.57 billion yuan and the balance of overseas bonds is 358.31 billion yuan. Housing enterprises are still at the peak of debt repayment. According to the latest data, from October to March, 2122, the capital in place of real estate development enterprises was 3.8 trillion yuan, down by 19.6% year-on-year, the largest decline in history, in which domestic loans fell by more than 21%, and the financial pressure on enterprises continued.
The Notice clearly states that "financial institutions should distinguish project risks from enterprise group risks, increase their support for high-quality projects, and refrain from blindly lending, cutting off loans or suppressing loans, so as to maintain the smooth and orderly delivery of real estate development loans". Since last year, after the risks of some real estate enterprises have become explicit, financial institutions have experienced a stress reaction, and the "risk aversion" sentiment has risen. Once the main body of the enterprise defaults, all project financing will be affected, which will accidentally hurt the reasonable financing needs of some high-quality projects of real estate enterprises and further aggravate the liquidity risk of enterprises. This time, it is specially proposed that "financial institutions should distinguish project risks from enterprise group risks", which is conducive to the reasonable financial support for some high-quality projects of insurance companies.
generally speaking, high-quality real estate projects are mostly distributed in hot cities such as the first, second and third tier cities, with clear and reasonable debt structure and good repayment ability. In the future, the financial support for such projects will be increased, which will improve the capital of enterprises.
Thirdly, the financing of M&A bonds was accelerated, and the liquidation of the enterprises in danger was accelerated.
according to the monitoring of the middle finger, since the beginning of this year, a number of real estate enterprises have issued M&A bonds, with direct financing exceeding RMB 11 billion. The issuers are mainly state-owned enterprises. At the same time, a number of real estate enterprises signed strategic cooperation agreements or memorandums with banks to obtain M&A financing loans. In addition, a number of banks and asset management companies raised funds by issuing M&A bonds.
This Notice clearly stated that "commercial banks and financial asset management companies should provide financial services for mergers and acquisitions of key real estate enterprise risk disposal projects, carry out M&A loan business steadily and orderly, increase financing support for M&A bonds, and actively provide financial advisory services for M&A." In the future, increasing the financing support for M&A bonds will help to speed up the risk clearing of housing enterprises with debt defaults.
however, it should be noted that in the stage of industry adjustment, housing enterprises are cautious about the overall acquisition and merger, and at present, the funds for M&A bonds of housing enterprises are mostly used for cooperative projects. At present, housing enterprises have higher requirements for "self-safety" and are more cautious about the choice of subject matter and the timing of delivery.
Recently, there have been frequent favorable policies. From the comprehensive "RRR reduction" on 15 to the implementation of differentiated housing credit policies by the central bank on 18, the credit environment and regulatory policies of the property market are expected to accelerate improvement, especially the down payment, interest rate reduction and optimization of the second-home certification standards will effectively stimulate the release of housing demand. From the perspective of industry development, the demand for buying houses has not disappeared, but the short-term demand side has a heavy wait-and-see mood. It is expected that with the gradual implementation of policies, buyers' expectations and home ownership confidence are expected to gradually stabilize, and the pace of market recovery still depends on the effective prevention and control of the epidemic and the implementation of local policies.
The following is the original text of the Notice:
In order to thoroughly implement the requirements of the CPC Central Committee and the State Council on coordinating epidemic prevention and control and decision-making arrangements for economic and social development, and the national conference on ensuring smooth logistics and promoting the stability of industrial chain supply chain, on April 8, the People's Bank of China and the State Administration of Foreign Exchange issued the Notice on Doing a Good Job in Financial Services for Epidemic Prevention and Control and Economic and Social Development (hereinafter referred to as the Notice), from the aspects of supporting the trapped subjects to bail out, unblocking the national economic cycle,
the circular points out that it is necessary to give full play to the dual functions of monetary policy in aggregate and structure, and increase financial support for industries, enterprises and people affected by the epidemic. The People's Bank of China will maintain a reasonable and sufficient liquidity, and guide financial institutions to expand loans and make reasonable profits to the real economy. Timely increase the amount of small-scale refinancing loans to support agriculture, make good use of the supporting tools of Pratt & Whitney Small and Micro Loans, provide incentive funds at 1% of the increase in the balance of Pratt & Whitney Small and Micro Loans of local corporate financial institutions, and continue to use the 411 billion yuan refinancing quota originally used to support Pratt & Whitney Small and Micro Credit Loans in a rolling way to promote the inclination of financial resources to enterprises, industries and regions affected by the epidemic. Ensure the timely, accurate and direct arrival of tax refund funds, and promote market players to enjoy policy dividends as soon as possible. For the trapped people, financial institutions should flexibly support them by delaying the repayment time reasonably, extending the loan term, delaying the repayment of principal, etc., and relevant overdue loans can be submitted without overdue records.
The Notice emphasizes that it is necessary to do a good job in implementing the policy of financial support for the real economy. We will make good use of the tools of rediscounting loans for supporting agriculture and supporting carbon emission reduction, optimize and support special refinancing loans for clean and efficient use of coal, and fully guarantee the stable supply of food and energy. We will set up a special refinancing loan for inclusive pension and support the financing of inclusive pension institutions. Make good use of the policy of venture guarantee loan to enrich the financial products and services of new citizens. Support local governments to carry out infrastructure investment moderately ahead of schedule, and ensure the reasonable financing needs of financing platform companies in compliance with laws and regulations. Due to the city's policy, reasonably determine the minimum down payment ratio and the minimum loan interest rate requirements for commercial personal housing loans, support the reasonable financing needs of real estate development enterprises and construction enterprises, and promote the stable and healthy development of the real estate market. Guide platform enterprises to conduct business in inclusive finance according to laws and regulations, and maximize the benefits to enterprises and the people. Financial institutions are required to implement the "two unwavering" and increase the proportion of private enterprise loans in newly issued corporate loans.
in order to implement the spirit of the national conference on ensuring smooth logistics and promoting the stability of industrial chain supply chain, the circular requires that the role of civil aviation emergency loans should be brought into full play, scientific and technological innovation and refinancing should be accelerated, and a docking mechanism of credit and bond financing should be established to support smooth freight logistics and stable circulation of industrial chain supply chain. Financial institutions should take the initiative to follow up and effectively meet the financing needs of transportation logistics enterprises and truck drivers. If it is difficult to repay loans temporarily, reasonable arrangements should be made for loan extension and renewal. For flexible employment subjects such as truck drivers, taxi drivers and online shop owners, we will increase business loan support in comparison with individual industrial and commercial households and small and micro enterprise owners.
The Notice clearly stipulates that the policy of facilitating foreign exchange receipts and payments of high-quality enterprises will be extended to the whole country, and a higher level of RMB settlement facilitation and enterprise foreign debt facilitation quota will be piloted. Domestic foreign exchange loans with trade export background are allowed to be used for settlement of foreign exchange. Improve the efficiency of cross-border RMB use by enterprises, and improve the exchange rate hedging management services of enterprises. China Foreign Exchange Trading Center exempts small and medium-sized enterprises from handling fees related to foreign exchange derivatives transactions in the inter-bank foreign exchange market. Increase support for export credit insurance.
Since the beginning of this year, the People's Bank of China has increased its liquidity. In order to support small and micro enterprises to accelerate the landing of tax rebates, the People's Bank of China has made great efforts to speed up the payment of surplus profits to the central government. By mid-April, it has paid 611 billion yuan, which is mainly used for tax rebates and transfer payments to local governments, equivalent to 611 billion yuan in base currency, which is basically equivalent to the overall RRR cut of 1.25 percentage point. On April 5, the People's Bank of China announced that the RRR would be lowered by 1.25 percentage point, and it would invest about 531 billion yuan in long-term funds. From the perspective of the whole year, the People's Bank of China will hand over a total of more than 1,111 billion yuan in surplus profits, and the progress of payment will be advanced, and it will be paid in time according to the needs of tax refund, and it will cooperate with other monetary policy operations to effectively maintain a reasonable and sufficient liquidity. Since the beginning of this year, the People's Bank of China has guided the market interest rate down by 1.1-1.15 percentage points, driving the corporate loan interest rate down by 1.21 percentage points year-on-year to 4.4%, which is a record low since statistics. We will increase the support of structural monetary policy tools such as refinancing, make good use of refinancing for supporting agriculture and supporting small enterprises and two carbon reduction tools, accelerate the delivery of 111 billion yuan of refinancing in the transportation and logistics field, create 211 billion yuan of refinancing for scientific and technological innovation and 41 billion yuan of refinancing for the aged, which is expected to drive the loan delivery of financial institutions to increase by 1 trillion yuan.
In the next step, the People's Bank of China and the State Administration of Foreign Exchange will work side by side with relevant departments, local party and government and financial institutions, solidly promote the accurate implementation of various policies, release policy dividends as soon as possible, and go all out to support the overall situation of epidemic prevention and control and economic and social development. (End)
Attachment
Notice on Doing a Good Job in Financial Services for Epidemic Prevention and Control and Economic and Social Development
At the beginning of the COVID-19 epidemic, in accordance with the decision-making arrangements of the CPC Central Committee and the State Council, the People's Bank of China, together with relevant departments, timely issued the Notice on Further Strengthening Financial Support for the Prevention and Control of Pneumonia in novel coronavirus (Yinfa [2121] No.29), proposing 31 measures such as monetary credit and financial services for epidemic prevention and control. At present, affected by the epidemic situation and domestic and foreign factors, China's economic development faces triple pressures of demand contraction, supply shock and expected weakening. In order to further improve the work of financial support for epidemic prevention and control and economic and social development, relevant matters are hereby notified as follows:
1. Give full play to the dual functions of monetary policy in aggregate and structure, and increase financial support for industries, enterprises and people affected by the epidemic
(1) Maintain reasonable and sufficient liquidity. Through open market operations, standing loan facilities, refinancing, rediscounting and other monetary policy tools, we will provide sufficient liquidity, guide financial institutions to expand loan lending, and enhance the stability of total credit growth. Give full play to the reform efficiency of quotation interest rate in the loan market, promote the steady decline of comprehensive financing costs of enterprises, and promote financial institutions to make reasonable profits to the real economy. Branches of the People's Bank of China may appropriately increase the tolerance of deposit reserve assessment for financial institutions substantially affected by the epidemic.
(2) provide differentiated financial services for industries that are greatly affected by the epidemic. Make good use of small-scale re-loans to support agriculture and rediscount policy, increase the amount of small-scale re-loans to support agriculture in a timely manner, and guide local corporate financial institutions to increase their support for contact service industries such as accommodation, catering, wholesale and retail, cultural tourism and other promising industries that are temporarily affected by the epidemic.
strengthen information sharing with the competent departments of commerce, cultural tourism, transportation and other industries, organize various forms of government-bank-enterprise docking activities, help banks improve their customer acquisition, risk assessment and control capabilities, and develop chattel mortgage and credit loan products according to the characteristics of enterprises.
(3) increase financial support for small and micro enterprises and other trapped market entities. Give full play to the role of universal micro-credit support tools. From October 1, 2122 to the end of June 2123, we will provide incentive funds according to 1% of the increase in the balance of universal micro-credit loans of local corporate financial institutions, and encourage financial institutions to stabilize the stock of universal micro-credit loans and expand the increase. Incorporate the Pratt & Whitney Small enterprise credit loans Support Program into the management of small-scale re-lending for supporting agriculture. Since 2122, the re-lending amount of 411 billion yuan originally used to support Pratt & Whitney small-scale credit loans will continue to be used in a rolling way, and it can be further increased if necessary, so as to guide financial institutions to increase the proportion of credit loans and first-time borrowers.
financial institutions should promote the model of active credit granting and loan repayment with borrowing to better meet the demand of small and micro enterprises. It is necessary to refine the requirements of internal fund transfer pricing, bad tolerance, due diligence and exemption, performance appraisal, optimize the allocation of credit resources, strengthen the empowerment of financial technology, and accelerate the improvement of financial service capabilities of small and micro enterprises. According to the principle of marketization, we should actively support trapped enterprises to resist the impact of the epidemic by providing medium and long-term loans, lowering interest rates, extending or renewing loans, and not blindly limit loans, draw loans or cut off loans. It is necessary to actively connect the credit information of enterprises in different fields such as finance, government affairs, public utilities and commerce related to the credit information platform, alleviate the information asymmetry between banks and enterprises, and improve financing efficiency.
(4) improve the quality and efficiency of financial services to key areas and people in distress. Financial institutions should improve the financial supply level in areas seriously affected by the epidemic by adjusting regional financing policies, internal fund transfer pricing, and implementing differentiated performance appraisal methods.
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