The PBOC and National Financial Regulatory Administration issued guidance
tightening real estate credit terms: development loan tenors must align with
construction and sales cycles and cover from project start through completion
and record-filing. Loans for presale projects should in principle have tenors no
longer than 3 years, with a maximum of 5 years. Loans for completed-property
sales should in principle be no longer than 5 years, with a maximum of 7 years.
Loans for commercial property development should in principle not exceed 7
years. The first principal repayment date should in principle occur after
project completion and record-filing; earlier principal repayment is permitted
if mutually agreed.
