Viewpoint Real Estate New Media understands that the notice mainly focuses on six aspects, including: carrying out M&A loan business safely and orderly, increasing bond financing support, actively providing M&A financing consulting services, improving M&A service efficiency, doing a good job in risk management, and establishing reporting system and publicity mechanism.
It is worth noting that the "Notice" mainly supports the merger and reorganization of key real estate enterprises, rather than acquiring the equity of real estate enterprises in danger or the real estate enterprises themselves.
The Notice clarifies that banking financial institutions should carry out M&A loan business of real estate projects in a safe and orderly manner in accordance with the principles of legal compliance, controllable risks and sustainable business. Focus on supporting high-quality real estate enterprises to merge and acquire some high-quality projects of large real estate enterprises with risks and operational difficulties.
At the same time, the "Notice" is also clear in increasing bond financing support-supporting high-quality real estate enterprises to register and issue debt financing tools in the interbank market, and raising funds for the merger and reorganization of risk disposal projects of key real estate enterprises.
The Notice proposes to actively provide financing consulting services for mergers and acquisitions. Encourage banking financial institutions to give full play to the advantages of customers and online channels, integrate business resources such as credit, investment banking and financial markets, and provide financing consulting services. At the same time, strengthen cooperation with third-party institutions such as securities companies and accounting firms to match the needs of both parties and improve the success rate of mergers and acquisitions.
In improving the efficiency of M&A services, the notice suggests starting from three aspects. First, speed up the M&A loan approval process of key real estate enterprises and improve the service efficiency of the whole process. Second, due diligence and credit review can be started in advance for projects with controllable risks. The third is to promote local governments to optimize the pre-sale fund management of acquired real estate projects, speed up the handling of warrants and other support measures, and create a good environment for M&A financing.
In terms of risk management, the Circular requires banking financial institutions to assess the compliance of projects according to the penetration principle. "You can't just look at the surface of the project, but also go deep into the bottom to see if the project is compliant. At the same time, strictly abide by the regulatory requirements of real estate development loans, strengthen the risk control and post-loan management of M&A loans, and monitor the use of funds.
In addition, the Notice clearly establishes a reporting system and a publicity mechanism. Banking financial institutions should establish a reporting system for M&A loans of key real estate enterprises, report their M&A financial services, existing problems and suggestions to the People's Bank of China and China Banking Regulatory Commission on a monthly basis, and actively cooperate with both parties to disclose information such as project M&A and financial support.