Core Viewpoint - The recent policy adjustment by regulatory authorities aims to provide a recovery period for compliant and quality real estate projects facing market downturns, balancing the need to ensure project delivery and mitigate risks [2][7][11]. Group 1: Policy Details - The new policy allows projects on the financing coordination mechanism "white list" to extend loans with certain conditions, potentially increasing the loan extension period to five years, providing more time for cash flow management [3][4]. - As of March 2024, the approved loan amount for "white list" projects exceeded 5.2 trillion yuan, increasing to 2.23 trillion yuan by October 2024, with total approvals surpassing 7 trillion yuan [4][11]. Group 2: Market Impact - The policy is expected to directly support state-owned enterprises, quality private enterprises, and those with strong credit ratings, while distressed real estate companies may benefit less [11][12]. - Banks may experience temporary relief from non-performing loan data through loan extensions, but the underlying risks remain, with market sales recovery being crucial for long-term risk mitigation [2][12]. Group 3: Challenges and Considerations - The effectiveness of the policy hinges on the quality of collateral, as nearly 60% of institutions view providing sufficient collateral as a major challenge for financing [6][11]. - The specific criteria for qualifying projects, collateral revaluation, interest rate determination, and risk classification rules are still pending clarification [6][9]. Group 4: Long-term Implications - The policy reflects a shift from short-term relief to long-term support for real estate financing, indicating a new financing model for the industry [8][9]. - Analysts suggest that the policy aims to create conditions for market recovery, but the actual impact will depend on the execution of the policy and the real estate market's sales performance [11][15].