[The heads of relevant departments and bureaus of the State Administration of Financial Supervision and Administration answer reporters’ questions on the real estate-related financing management measures issued by the State Administration of Financial Supervision.] On August 28, the State Administration of Financial Supervision recently issued the "Measures for the Administration of Commercial Housing Development Loans (Trial)", "Measures for the Administration of Personal Housing Loans (Trial)", "Measures for the Administration of Commercial Real Estate Loans (Trial)", "Measures for the Administration of Loans for Urban Renewal Projects (Trial)" and "Measures for the Management of Trust Business in the Real Estate Sector by Trust Companies (Trial)". The heads of relevant departments and bureaus answered reporters' questions on relevant issues. 1. What is the background of the issuance of the "Measures for the Administration of Commercial Housing Development Loans (Trial)", "Measures for the Administration of Personal Housing Loans (Trial)", "Measures for the Administration of Commercial Real Estate Loans (Trial)", "Measures for the Administration of Loans for Urban Renewal Projects (Trial)" and "Measures for the Administration of Trust Business in the Real Estate Field by Trust Companies (Trial)"? The State Administration of Financial Supervision resolutely implements the decisions and arrangements of the Party Central Committee and the State Council. Based on the comprehensive review of existing policies in the field of real estate finance, based on the real estate market situation and future development direction, it is in orderly connection with the relevant systems issued by the Ministry of Housing and Urban-Rural Development and the People's Bank of China. It clarifies the management requirements for commercial housing development loans, personal housing loans, commercial real estate loans, urban renewal project loans, and trust business in the real estate field. It forms a financing system that adapts to the new model of real estate development, protects the legitimate rights and interests of home buyers, meets reasonable real estate financing needs, and promotes high-quality real estate development. 2. How does the "Commodity Housing Development Loan Management Measures (Trial)" meet the reasonable financing needs of commercial housing development projects? The Measures guide banking financial institutions to follow the principles of marketization and rule of law, focus on projects, and adopt the sponsoring bank model to meet the reasonable financing needs of commercial housing development projects. The Measures require banking financial institutions to reasonably distinguish between real estate group risks and project risks. Loan approval will focus more on the project itself. Projects will be accounted for separately. Funds will be operated independently and managed in a closed manner to effectively prevent project delivery risks and credit risks. In order to match the construction and sales cycle of pre-sale and currently-sold projects in the sales system, the Measures set differentiated loan term requirements and appropriately lengthened the loan term for currently-sold projects. The measures are connected with the "white list" mechanism. Loans issued according to the measures and corresponding commercial housing development projects are included in the "white list" project management, so that the "white list" policy can benefit more commercial housing development projects. 3. How does the "Personal Housing Loan Management Measures (Trial)" better support rigid and improved housing needs? In order to cooperate with the promotion of the reform of the commercial housing sales system, help build a new model of real estate development, and better meet the needs of individual housing loans under the existing housing sales and pre-sale models, the State Administration of Financial Supervision, together with the People's Bank of China, formulated the "Personal Housing Loan Management Measures (Trial)". The Measures are consistent with the "Opinions on Reforming and Improving Real Estate Credit Management and Promoting the Acceleration of the Construction of a New Real Estate Development Model" jointly issued by the People's Bank of China and the State Administration of Financial Supervision, guiding banking financial institutions to support rigid and improved housing needs in accordance with the principles of marketization and rule of law, and to better safeguard the legitimate rights and interests of home buyers. From a safety perspective, the Measures adjust the timing of individual housing loan disbursements for pre-sold commercial housing from the capping of the main structure to the completion and filing, and require the strengthening of risk management throughout the loan process, which is conducive to fundamentally protecting the legitimate rights and interests of home buyers. From the perspective of availability, the method appropriately optimizes the upper limit requirements of the income-to-debt repayment ratio and extends the upper limit of the loan period, which will help to reasonably improve the loan capacity of home buyers and provide more loan options for home buyers to choose from. From an economic point of view, the measures make convenient arrangements for second-hand housing transactions such as "transfer with mortgage", which will help reduce housing transaction costs and better meet the demand for improved housing; at the same time, banking financial institutions are required to strengthen the management of third-party cooperative institutions to prevent illegal loan intermediaries from infringing on the legitimate rights and interests of home buyers. 4. What are the main contents of the "Commercial Real Estate Loan Management Measures (Trial)"? How to adapt to the credit needs of the commercial real estate market under the new real estate development model? In order to promote the standardized development of commercial real estate loans and support the stable and orderly operation of the commercial real estate market, the State Administration of Financial Supervision has formulated the "Commercial Real Estate Loan Management Measures (Trial)". The Measures clarify the scope of the definition of commercial real estate loans, introduce the sponsoring bank system, project system and closed management, and require banks to establish and improve commercial real estate loan management mechanisms, effectively identify, assess, monitor, control and mitigate risks, and conduct business in accordance with laws and regulations. Taking into account the differences in capital needs and repayment sources during the development, purchase and operation stages of commercial real estate, the Measures divide commercial real estate loans into three stages: development, purchase and operation. In view of the financing characteristics of each stage, the method puts forward detailed requirements in terms of loan purpose, loan term, customer and project access, loan management, etc., to better adapt to the credit needs of the development of the commercial real estate market. In order to achieve good system connection, the purpose of operating property loans can be implemented in accordance with the provisions of the "Notice on Effective Management of Operating Property Loans" and other documents. 5. What financial measures does the "Urban Renewal Project Loan Management Measures (Trial)" propose in supporting urban renewal? In order to thoroughly implement the decisions and arrangements of the Party Central Committee and the State Council on promoting high-quality urban renewal, the State Administration of Financial Supervision, together with the Ministry of Housing and Urban-Rural Development, formulated the "Urban Renewal Project Loan Management Measures (Trial)". The Measures clarify the basic principles for financial institutions to carry out loan business for urban renewal projects, and detail requirements such as access conditions, loan purposes, repayment sources, and fund management. The measures guide financial institutions to set up special "urban renewal project loans" varieties, reasonably determine loan amounts, terms, interest rates and guarantee measures, and enhance the accuracy, adaptability and effectiveness of financial services for urban renewal. At the same time, financial institutions are encouraged to give full play to their own advantages, design comprehensive financial service plans based on the characteristics of urban renewal projects, and increase financial support for urban renewal projects while controlling risks. 6. What are the main purposes and main contents of the "Measures for the Administration of Trust Companies Carrying out Trust Business in the Real Estate Field (Trial)"? The Measures adhere to the principles of serving the real economy, controlling risks, and implementing appropriate management of investors. They require trust companies to follow the principles of marketization and rule of law, give full play to their unique advantages, strengthen professional capacity building, improve the adaptability, compliance, and sustainability of trust services, treat projects of real estate enterprises of different ownership equally, and promote the formation of diversified financial service channels that adapt to the new model of real estate development. The method is conducive to improving the accuracy and adaptability of trust service real estate project docking. Focus on guiding trust companies to adhere to the project-centered approach, innovatively use the host bank model, further improve closed fund management, and effectively strengthen the protection of investors' legitimate rights and interests. The measures are conducive to promoting trust companies to adapt to the regular characteristics of the real estate industry, improve management mechanisms, perform fiduciary duties, and improve service levels. Clarify the definition, classification and business development principles of trust companies' real estate related businesses, put forward detailed requirements for asset management trusts in strengthening independent due diligence, centralized decision-making, project management, etc., and also put forward special requirements for investment in non-standardized assets. It puts forward detailed requirements for asset service trusts in terms of the legality of the trust purpose, the authenticity of the property, and the clarity of rights and obligations.