Ministry of Housing and Urban-Rural Development: orderly establishment of basic systems for real estate development, financing, sales, etc.

Minister of Housing and Urban-Rural Development Ni Hong stated that it is necessary to accelerate the construction of a new model for real estate development. It is crucial to firmly grasp the basis of providing people with safe and adequate housing, adhere to a combination of policy support and reform and innovation, promote the establishment of a coordinated mechanism for the elements of "people, houses, land, and money", and ensure a smooth and orderly transition from old to new models. The next step is to orderly establish basic systems for real estate development, financing, and sales. In terms of real estate development, it is important to implement project company systems, where project companies exercise their independent legal rights in accordance with the law, and corporate headquarters bear the responsibility of investors. It is strictly forbidden for corporate headquarters to improperly divert project company funds or withdraw funds before project delivery, to ensure that project funds are managed and used for specific purposes. For real estate financing, the system of lead banks is to be implemented, whereby one bank or a consortium is designated as the lead bank for a project, and funds for project development, construction, and sales are deposited in the lead bank to meet the reasonable financing needs of project companies. In terms of selling commercial housing, the system of selling completed units is to be promoted to ensure "what you see is what you get" and fundamentally prevent delivery risks. For projects that continue to be pre-sold, supervision of pre-sale funds will be standardized to effectively protect the legitimate rights and interests of homebuyers.