China overhauls real estate credit system, extending loan tenors

Following the rollout of policies prioritizing the sale of completed homes, the People's Bank of China (PBOC) and other financial regulators have introduced a new framework to overhaul the real estate credit system, complementing broader reforms to the commercial housing sales regime.

On August 28, the PBOC and the National Financial Regulatory Administration (NFRA) jointly issued the Opinions on Reforming and Improving Real Estate Credit Management and Accelerating the Establishment of a New Model for Real Estate Development. The new framework reforms two core areas -- development loans and individual home mortgage loans