The logic of real estate financing is shifting toward "project credit."

Recently, two real estate developers, China Resources Land and China Merchants Shekou, received registration approvals for corporate bonds, planning to raise a total of 36.6 billion yuan. Of China Resources Land's 20 billion yuan corporate bond, 8.5 billion yuan will be invested in real estate projects in four regions including Beijing, Shanghai, and Hangzhou; of China Merchants Shekou's 16.6 billion yuan corporate bond, 5.55 billion yuan will be invested in real estate projects in seven regions including Beijing, Shanghai, Hangzhou, and Xi'an. This is the latest practice designed and implemented under the "project financing" logic following the China Securities Regulatory Commission's release of the Opinions on Supporting the Construction of a New Model for Real Estate Development through the Capital Market, meaning that the real estate financing logic is shifting from "entity credit" to "project credit."