General Offices of the China Banking and Insurance Regulatory Commission, Ministry of Housing and Urban-Rural Development and People's Bank of China, Circular on the Work Associated with the Issuance by Commercial Banks of Letters of Guarantee in Exchange for Pre-Sale Escrow Funds

中国银行保险监督管理委员会办公厅、住房和城乡建设部办公厅、中国人民银行办公厅关于商业银行出具保函置换预售监管资金有关工作的通知

December 02, 2022 | BY

Susan Mok

High-quality real estate enterprises are supported by letters of guarantee.

Issued: November 12, 2022

 

Main contents: Based on the principles of market orientation and rule of law, commercial banks are permitted to decide at their own discretion on the basis of a full assessment of real estate enterprises' credit risk, financial position, reputation risk, etc. to engage in the business of letter of guarantee in exchange for pre-sale escrow funds with high-quality real estate enterprises (Article 1).

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