Resolve the liquidity risk of real estate enterprises and welcome the heavy policy again. On November 14, the CBRC, the Ministry of Housing and Urban Rural Development and the People's Bank of China jointly issued the Notice on the Work of Commercial Banks Issuing Letters of Guarantee to Replace Pre sale Supervision Funds (hereinafter referred to as the Notice), which aims to support high-quality real estate enterprises to reasonably use pre-sale supervision funds, prevent and resolve liquidity risks of real estate enterprises, and promote the steady and healthy development of the real estate market. The Notice clearly states that after the funds in the regulatory account reach the regulatory limit specified by the housing and urban and rural construction departments, real estate enterprises can apply to commercial banks for issuing letters of guarantee to replace the funds in the regulatory limit. The amount of letter of guarantee replacement shall not exceed 30% of the amount of funds required to ensure the completion and delivery of the project in the regulatory account, and the replaced regulatory funds shall not be less than 70% of the amount of funds required to ensure the completion and delivery of the project in the regulatory account. Commercial banks can make independent decisions on the basis of fully evaluating the credit risk, financial situation, reputation risk, etc. of real estate enterprises according to the principles of marketization and rule of law, and carry out the guarantee replacement pre-sale supervision fund business with high-quality real estate enterprises. For the use of the letter of guarantee, the Notice stipulates that if the real estate enterprise provides the letter of guarantee issued by a commercial bank and requests the housing and urban and rural construction department to release the corresponding amount of funds in the pre-sale capital supervision account, the supervision account bank shall cooperate with the housing and urban and rural construction department to do the necessary review work. The housing and urban and rural construction departments shall issue the appropriation instruction to the regulatory account bank after studying and agreeing. The regulatory account bank shall allocate funds according to the allocation instructions of the housing and urban and rural construction departments, and reduce the amount of account management by an equal amount. At the same time, the Notice requires that commercial banks, when issuing letters of guarantee to replace pre-sale regulatory funds, should refer to the development loan credit standards and select high-quality real estate enterprises with stable operation and good financial status. The full amount of the guarantee line is included in the unified credit line for real estate enterprises and their affiliated groups. It is necessary to guard against the risk of letter of guarantee business by means of deposit, counter guarantee of real estate enterprises and other credit enhancement measures, withdraw risk capital as required, and withdraw risk reserves. In case of advance payment, the issuing bank shall take recourse measures from the real estate enterprise in time to protect the security of creditor's rights. The advance funds shall be provided in full and classified truthfully, and risks shall not be hidden. Dong Ximiao, the chief researcher of China Merchants Alliance Finance, said that the financial management department and the housing construction department explored the introduction of letters of guarantee to replace pre-sale regulatory funds, which is a positive exploration and helps optimize the management of pre-sale regulatory funds, provide liquidity support for high-quality real estate enterprises through letters of guarantee, more flexibly meet the daily capital use needs of real estate enterprises, and help real estate enterprises alleviate liquidity pressure, And then promote the steady and healthy development of the real estate market. (Liu Xinshe)