From Short-Term Relief to Long-Term Mechanism
China's property financing coordination mechanism — the so-called 'white list' — was recalibrated in early 2026. Qualifying white-list projects can now have their loans rolled over for up to five years, up from a prior ceiling of about 2.5 years, giving developers a far longer funding buffer to complete construction and deliver homes.
Land Supply Tightens
In parallel, the Ministry of Natural Resources signalled a stricter land regime: new construction land is, in principle, not to be used for commercial real-estate development, and annual new urban-rural construction land must not exceed the area of land revitalised — effectively a 'revitalise one mu to add one mu' rule that caps greenfield supply.
From Rescue to Restructuring
The shift reflects a policy pivot from crisis firefighting toward building a 'new development model': limiting speculative land expansion, steering credit to completed, deliverable projects, and letting the market absorb inventory. The coordination mechanism has been moved toward normalised operation across cities.
What to Watch
Success hinges on local execution. With white-list financing extended and land supply constrained, the focus turns to whether presales risks fall, deliveries stay on track, and inventory keeps clearing without reigniting speculation.