Since this year, Henan has promoted the resumption of work and construction of 694 unfinished projects, achieved the completion and delivery of 50 unfinished projects, 200 projects have been improved, and 447,000 houses have been registered for the first time in real estate; promoted the provincial and Zhengzhou City to set up a real estate relief fund of 10 billion yuan respectively, vigorously strive for the special loan of the national policy bank to support the construction and delivery of residential projects that have been sold and difficult to deliver on the deadline. The first batch of special loans of 5 billion yuan have been issued to Zhengzhou. Strengthen the main responsibility of the development company to ensure that the main responsibility of the building is paid, dispose of assets and equity through multiple channels, raise funds, and save themselves; for those who withdraw funds from and are suspected of committing illegal crimes, crack down on and recover according to law. Public security organs across the province have investigated and handled 69 criminal cases involving the problematic real estate, forming a strong deterrence.
In 2020, Henan Province issued two local administrative regulations , "Local Financial Organization Risk Warning Mechanism (Trial)" and "Henan Provincial Local Financial Organization Emergency Response Plan (Trial)". According to the content of the two documents, Henan Province adopts conservative and prudent compliance review and supervision for each financial entity in the market economy .
In 2022, six rural banks in Henan Province collapsed. This incident was in the 2020 financial risk warning regulations issued by Henan Province. However, the incident involved local financial departments, but made huge work mistakes in regulatory responsibilities, risk management and dialogue with investors, so that media and public opinion made it a hot search.
Henan Province Zhengzhou Banking Regulatory Bureau and corresponding departments have arbitrarily adopted the "red code" method to further aggravate the concerns of depositors across the country in order to prevent the from exploding and bank depositors from going to Zhengzhou to understand the situation.
Later, Henan Provincial Finance had to come out to provide a guarantee and carry out rigid redemption in batches. The entire process of handling this incident shows that inland provinces lack the implementation of the legal system and financial risk management mechanism in actual work, lack of professional talents, a strong bureaucratic cultural atmosphere, and lack of systematic thinking when dealing with the media.
The housing market is linked to the real estate market, stock market and bond market. Henan Province carries out risk management of the real estate market around Zhengzhou and prefecture-level cities with the highest GDP. This is a work that must be done to stabilize the financial order. However, relying on national relief funds and Henan Province's fiscal emergency funds and real estate assets to make up for the black hole is obviously a drop in the bucket.
Real estate pre-sale system, banks, housing management, housing and construction cooperation to supervise the security of loans for home buyers, and developers withdraw pre-sale funds in accordance with laws and contracts. This mechanism will never have the risk of unfinished work. It is too ridiculous to use the money of home buyers to build a house.
However, developers and banks formed an interest alliance to destroy the supervision and management mechanism for pre-sale funds, and used the power rent-seeking loophole to connect the regulatory authorities, thus causing home buyers to waste their home purchase funds.
Zhengzhou’s “highest-educated property” Yongwei Xitang project is a typical case of developers misappropriating pre-sale funds. With all owners of Yongwei Xitang specializing in protecting their rights, the Zhengzhou Municipal Government organized all parties to recover the developers’ misappropriation of 1 billion yuan of funds, and the government will subsequently formulate the state-owned enterprises to continue construction and development. The developers, banks and regulatory authorities involved have not yet reported the responsibility for investigation and traceability.
Henan Province needs to maintain the order of the real estate market and ensure the credit of the financial system. In recent years, Henan has been a very cautious position on financial innovation. Except for local listed companies and state-owned enterprises, few well-known financial holding group companies in Henan appear in the capital market.
In the process of rule of law, financial innovation has experienced failed market economy attempts such as Internet finance and regional chains. However, financial evolution is still continuing to upgrade. Henan is a province with a large population and a province with a large economy. If finance is excluded by the real economy, the overall economic ecology will shrink and develop abnormally.
I think in the policy formulation of stabilizing the real estate market, Henan Province must understand the stock market and bond market foundation related to the real estate market, and trace the loopholes in Henan's financial regulatory system to rebuild credit.We have used the rule of law system and political courage to investigate the real estate market in Henan for 30 years. Under the pre-sale system, we have looked at the rights and responsibilities of banks and housing management systems. We cannot let bad real estate developers lie down, and we cannot let officials who are dereliction of duty and rent-seeking officials escape the legal gate. Every cent they embezzle is the hard-earned money of workers. Behind a house is the efforts of several generations of a family.
