Real estate financing "white list" mechanism effectively promotes the implementation of Jiangsu Zhongnan Construction Group's (000961.SZ) first project loan.

In January, the Ministry of Housing and Urban-Rural Development and the Regulatory Commission for Financial Affairs jointly issued the "Notice on Establishing a Coordinated Mechanism for Urban Real Estate Financing." The notice pointed out the importance of using policy tools tailored to each city to better support the reasonable financing needs of real estate projects and promote the stable and healthy development of the real estate market. According to reports, Jiangsu Zhongnan Construction Group (000961.SZ) was among the first to benefit from this policy. Currently, the company has a total of 40 projects on the financing "white list," with 9 projects in cities such as Qingdao, Chongqing, Xi'an, Kunming, and Yantai already confirmed and the Xi'an Zhongnan Junqi project having received funding. As the first project on the white list to receive funding According to the policy notice, the selection of supported projects under the urban real estate financing coordination mechanism is based on the development and construction status of real estate projects, as well as the qualifications, credit, and finances of the project development companies. Following the principles of fairness and justice, a list of real estate projects eligible for financing support will be submitted to financial institutions within the local administrative region. As the coordination mechanism accelerates, more real estate projects are being added to the white list for enterprises. Recently, many real estate developers such as China Aoyuan, Agile Property, Country Garden, Shimao, Sunshine City, Greenland, and Sunac have announced their inclusion on various local government financing "white lists" and disclosed relevant progress. According to Jiangsu Zhongnan Construction Group, the company currently has a total of 40 real estate projects nationwide on the financing "white list," with a total construction area exceeding 11 million square meters and over 30,000 housing units for delivery included. Nine of these projects in cities like Qingdao, Chongqing, Xi'an, Kunming, and Yantai have already been confirmed for inclusion, and the related projects are currently in the process of securing financing. Other projects in various locations are communicating with financial institutions under the support of local governments and are gradually being added to the list. It is worth mentioning that the Xi'an Zhongnan Junqi project has successfully secured financing and received funding, with 30 million RMB already in the account. "As more real estate projects receive loan support, the policy effects of supporting project financing will gradually emerge. These measures will help improve the liquidity of real estate enterprises, alleviate the tightening of real estate loans, and expand real estate investments," said Liu Shui, Director of Enterprise Research at China Index Research Institute. Various parties actively promote the implementation of the financing coordination mechanism According to data from the Ministry of Housing and Urban-Rural Development, as of February 20, 214 cities in 29 provinces nationwide have established urban real estate financing coordination mechanisms, gradually proposing a list of real estate projects eligible for financing support and pushing them to commercial banks. This involves a total of 5,349 projects, with 162 projects in 57 cities having obtained bank financing totaling 29.43 billion RMB. As one of the first beneficiaries, Jiangsu Zhongnan Construction Group has received strong support from local governments and financial institutions. Since February, local governments have visited Zhongnan Group multiple times to conduct research and support its development. Various types of investors, including the Nantong Haimen District government, Jiangsu Capital, China CITIC Financial Assets, securities companies, and other cooperation financial institutions, have all expressed their intent to provide support measures. Jiangsu Zhongnan Construction Group stated that the company will actively respond to policy calls, actively communicate with local housing and construction departments as well as banks, and expects more projects to enter the "white list" in the future. The implementation of this policy will further ensure the operation of enterprises and the high-quality delivery of projects. According to related information, in the past three years, Zhongnan Group has contributed 11.4 billion RMB in taxes in Jiangsu Province and over 20 billion RMB nationwide. Even in the difficult year of 2023, it still paid taxes of 2.6 billion RMB. In addition, Zhongnan Group has provided over 100,000 job opportunities, making significant contributions to people's livelihood. In terms of delivery, from 2022 to 2023, Jiangsu Zhongnan Construction Group has delivered over 170,000 housing units in the real estate sector, demonstrating the social responsibility of listed real estate companies in ensuring the delivery of projects and people's livelihood. Analysts pointed out that the implementation of the real estate project "white list" will not only provide more support for real estate project financing and accelerate the construction of "guaranteed delivery" projects but also help relevant enterprises gain the trust of various stakeholders in the future market. This will promote the gradual recovery of the real estate market in a virtuous cycle.