China Securities Regulatory Commission (CSRC) has formulated new guidelines to support the construction of a new real estate development model, as reported on August 28. The guidelines, titled "Opinions on Capital Market Support for Building a New Real Estate Development Model," aim to accelerate the establishment of a capital market service system that aligns with the evolving real estate sector, enhance housing quality, and promote corporate transformation and development.
The document, comprising four sections and twelve articles, outlines key measures across several dimensions. First, it emphasizes the need to reform financing methods for real estate development, transitioning from reliance on corporate credit to project-based assessments, while ensuring equal access to reasonable financing for developers of all ownership types. It also stresses strengthening admission standards, information disclosure, and fund supervision in the real estate sector to mitigate risks and foster high-quality growth.
Second, the guidelines support reasonable financing by enabling listed real estate developers to pursue refinancing and utilize tools such as share issuance, targeted convertible bonds, and cash to acquire real estate-related assets. Efforts will be made to expand bond financing, allowing developers to issue corporate bonds for projects complying with policy requirements, and encouraging the issuance of commercial mortgage-backed securities and real estate asset-backed securities. Additionally, qualified rental housing and urban renewal projects may issue real estate investment trusts or serve as assets for REIT expansions, with cautious advancement of commercial real estate REITs. Qualified private fund managers are also permitted to establish real estate private investment funds.
Third, regulatory oversight will be optimized, focusing on project-based characteristics in the approval of securities issuance by real estate developers. Information disclosure regulations will prioritize compliance with accounting standards, and strict monitoring of raised funds with look-through scrutiny will be enforced. Authorities will crack down on fraudulent issuance, information disclosure violations, and misappropriation of funds, with heightened penalties for systemic and organized misconduct.
Fourth, measures to prevent and resolve risks include implementing the "Four Early" requirements—early detection, early reporting, early intervention, and early handling—and establishing a mechanism for preemptively assessing capital market risks in the real estate sector. Regulatory coordination across equities, bonds, and funds will be strengthened. The orderly management of delisting for listed real estate developers will be ensured, and diversified delisting channels will be expanded. Local governments will be supported in resolving defaults on real estate bonds, with a wider range of risk disposal mechanisms for property-related debt.
The CSRC stated that it will diligently implement these guidelines, balancing development and regulation. By fully leveraging the capital market's role, it aims to actively support financing for real estate projects that meet policy requirements, refine regulation of real estate securities issuers, and prevent risks in the sector, ultimately serving the accelerated construction of a new development model and advancing high-quality growth in the real estate industry.