Core Viewpoint - The Supreme People's Court of China has issued a significant policy change allowing homebuyers to terminate contracts and avoid repaying loans if their properties are not delivered, marking a structural shift in the real estate market [1][5]. Group 1: Policy Changes - The Supreme People's Court has instructed judges nationwide that if a property is not delivered, buyers can legally terminate their contracts, and loan agreements can also be canceled, relieving them of repayment obligations [1][5]. - This policy is a response to the crisis of over 2 million unfinished properties, affecting millions of families and posing risks to social stability [5]. Group 2: Legal Precedents - A real case from Jiangsu Province illustrates the new ruling, where a buyer successfully had both the property purchase and loan contracts annulled, receiving full refunds for the down payment and any repaid loan amounts [3]. - The court emphasized that buyers should not bear the responsibility of loan repayment when they have not received their properties, setting a precedent for future cases [3][5]. Group 3: Market Implications - The shift in policy indicates the end of the pre-sale system, with the market moving towards selling completed properties, necessitating a reevaluation of existing business practices for developers and banks [5][7]. - Developers will now be held accountable for their financial practices, as they can no longer rely on pre-sales to fund construction without delivering properties [7]. Group 4: Industry Response - Banks will need to reassess their lending practices, ensuring they verify the financial stability of developers before issuing loans, rather than solely pursuing repayments from buyers [7]. - This change represents a fundamental shift in the real estate landscape, requiring all stakeholders to adapt to new rules and protect their interests more proactively [7].