On November 3, a financial frontline report stated that CITIC BANK (ASX: 09979) held its 2026 third-quarter results briefing today. The head of the Major Client Department said that the "828 New Real Estate Policy" has formed a trinity policy system covering sales, credit, and the capital market, with prominent foundational, programmatic, and regulatory characteristics.
The head introduced that from the perspective of real estate enterprises, the new policy's impact is mainly in three areas. First, project turnover will slow, as homebuyer funds are separated from the development stage and bank financing requirements become stricter. Second, profit margins will narrow, and longer development cycles will lead to lower returns on real estate development projects. Third, there will be higher requirements for product strength, as consumers will be more willing to pay for good houses and good products.
From the financing perspective, a project-centered financing model is being fully implemented. How much funding different types of real estate projects can obtain, what financing products are used, what conditions are required, and how funds are used have all been basically clarified. The financing methods for real estate enterprises are clearer, more standardized, and the channels are more diverse and smoother.
From the bank perspective, first, under the new policy, banks' loan rights and interests receive more protection. Real estate credit business will focus on market risk management, and operational and compliance risks will be somewhat reduced. Judgment of a project's market risk will become a core competitiveness. Second, competition among high-quality real estate enterprises and high-quality projects will become more intense. The new policy has a high degree of uniformity in requirements for real estate loans and strictly implements the lead bank system, under which only one bank can be chosen for a project. Banks' comprehensive service capabilities will face a greater test.
Overall credit deployment in the real estate sector is expected to slow. From the perspective of corporate loan deployment, project quality will improve, total volume will decline, and cycles will lengthen, with credit deployment staying in sync with the market. From the perspective of personal loan deployment, mortgage deployment timing will be delayed, and the proportion of second-hand home mortgages will increase year by year. The asset quality of banks' new development loans is expected to improve.
The head said that China Citic Bank Corporation Limited (ASX: 09979) will resolutely implement the decisions and arrangements of the Party Central Committee and the State Council on building a new model for real estate development, strictly implement the relevant requirements of the "828 New Real Estate Policy," and adhere to the overall strategy of being project-centered and improving quality, stabilizing stock, and increasing excellent and incremental business. In terms of regions, it will focus on the core areas of high-capacity cities. In terms of business formats, it will increase support for projects sold as completed homes and for safe, comfortable, green, and smart good housing projects, promoting the construction of a new model for real estate development.
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