I. Background and Significance of the Issuance of the Measures

　　The Party Central Committee and the State Council attach great importance to the reform of the rural land system. The Third Plenary Session of the 18th CPC Central Committee proposed: “ Allow the transfer, leasing, and equity participation of collectively-owned construction land in rural areas. , Implement equal access to the market, equal rights, and equal pricing for state-owned land. ”。2015 Year 2 In the month, the Standing Committee of the National People's Congress adopted the “Decision on Authorizing the State Council to Temporarily Adjust the Implementation of Relevant Legal Provisions in the Administrative Regions of 33 Pilot Counties (Cities and Districts), Including Daxing District in Beijing.” In accordance with the spirit of central reform, 2015 Year 3 Month, the Ministry of Natural Resources and Land selected nationwide. 15 One city (or county) is piloting the entry of collectively-owned, commercially-used construction land into the market. To implement the integration of collectively-owned, commercially-used construction land with state-owned construction land... “ Equal rights, equal price ” The China Banking and Insurance Regulatory Commission, in conjunction with the Ministry of Natural Resources, shall, in accordance with the decision of the Standing Committee of the National People's Congress and guided by the principles of integrating goal-oriented and problem-oriented approaches and aligning rural land system reform with financial sector reform, formulate these Measures based on thorough research and deliberation on land mortgage financing in pilot areas for market entry.

　　The issuance of these Measures represents an important step taken by the China Banking and Insurance Regulatory Commission and the Ministry of Natural Resources to earnestly implement the Party Central Committee and the State Council’s requirements for ensuring the effective implementation of reform, as well as a joint effort by relevant departments to advance the pilot program for introducing collectively-owned construction land into the market. It is a significant achievement that closely links the reform of rural land systems with financial sector reforms, thereby creating synergistic momentum for reform. It also reflects the need to align collectively-owned construction land in rural areas with state-owned construction land. “ Equal rights, equal price ” The reform requires making important institutional arrangements to actively provide services that benefit farmers and the people. , This will provide new and powerful impetus for establishing and perfecting a system for rural collectively-owned construction land to enter the market—characterized by equal rights and prices, smooth circulation, and shared benefits—and for generating reform outcomes that are replicable, scalable, and conducive to legislative improvements.

　　 II. Scope of Application of the Measures

　　In accordance with the deployment requirements of the Party Central Committee and the State Council on rural land system reform, the “Measures” clearly define the applicable regions, eligible land types, and validity period. With regard to applicable regions, the “Measures” explicitly stipulate that rural collectively-owned construction land eligible for mortgage loans is limited solely to those designated by the state. 15 The pilot counties (cities and districts) for market-entry reform. With regard to applicable land categories, the Measures clearly define collectively-owned construction land for commercial operations in rural areas as those parcels of existing rural collective construction land that have been designated in the overall land use plan and urban-rural planning as being intended for industrial, mining, warehousing, commercial, and service purposes. , The right to use collectively-owned construction land in rural areas that is brought onto the market through assignment, leasing, or contribution of value (equity participation) and meets the conditions for entering the market may be used to obtain mortgage loans. Regarding the validity period, the Measures stipulate that the validity period shall expire on [date]. 2017 Year 12 Moon 31 The date is consistent with the pilot period for bringing collectively-owned construction land in rural areas into the market.

　　III. General Requirements of the Measures

　　In accordance with the basic principles set forth by the Party Central Committee and the State Council regarding market-entry reform, the Measures stipulate that, while upholding the unchanged nature of land ownership as public property, maintaining the red line for arable land, and safeguarding farmers’ interests, we shall carry out mortgage lending using the rights to use collectively-owned construction land designated for commercial purposes in rural areas. Furthermore, the Measures ensure that collectively-owned construction land designated for commercial purposes in rural areas will enjoy the same market access conditions, equal rights, and equivalent pricing as state-owned construction land.

　 　IV. Main Contents of the Measures

　　The Measures consist of 35 articles, covering various aspects related to the mortgage lending of land-use rights for collectively-owned construction land used for commercial purposes by banking and financial institutions, as well as land management. They exhibit characteristics of systematicness, standardization, and innovation. The Measures provide detailed regulations on conducting mortgage lending business for land-use rights of collectively-owned construction land used for commercial purposes—from the purpose, basis, and general requirements for such loans, to the scope of loan operations, full-process management of loans, risk-mitigation mechanisms for loans, and the responsibilities of regulatory authorities.

　 　V. Basic Principles and Full-Process Management of Loans

　　The Measures stipulate that mortgage loans secured by the use rights of collectively-owned construction land for commercial purposes in rural areas shall adhere to the principles of compliance with laws and regulations, benefiting farmers and the public, equality and voluntariness, fairness and integrity, controllable risks, and commercial sustainability. The Measures clearly outline the full-process management of such loans, setting forth requirements for rural collective-owned construction land use-right loan business from aspects including general loan requirements, intended use of loans, and loan conditions. At the same time, detailed provisions are made for each stage of the loan process, including pre-loan investigation, mid-loan review, and post-loan management.

　 　VI. Regarding the Scope of Collateral

　　In accordance with the principle of equal rights and equal prices, and drawing on the provision that state-owned land use rights legally entitled to disposal may be mortgaged, the Measures permit two categories of rural collectively-owned construction land use rights—those endowed with disposal authority—to be used as collateral for financing. The first category comprises collectively-owned construction land use rights obtained through assignment, lease, or contribution of value in exchange for equity participation. The second category includes collectively-owned construction land that has not yet entered the market but meets the conditions for market entry; the Measures define the scope and prerequisites for mortgaging such land use rights that are eligible for market entry. Specifically, one type involves collectively-owned construction land that has not yet entered the market but has already undergone legal real estate registration and holds a property ownership certificate, complies with planning, environmental protection, and other relevant requirements, possesses basic conditions for development and utilization, and whose ownership entity has followed the prescribed decision-making procedures for collective land assets and consented to the mortgage. Additionally, this category includes cases where the pilot county (city or district) government consents to the realization of the mortgage right, allowing the land to enter the market. The second type involves collectively-owned construction land that has not yet entered the market but was legally used prior to the reform, has undergone legal real estate registration and holds a property ownership certificate, has completed the required procedures for market entry in accordance with applicable regulations, signed a land-use contract, and undergone the necessary registration amendment procedures. The Measures also stipulate that the following types of collectively-owned construction land use rights may not be mortgaged: those with unclear or disputed ownership; those seized by judicial authorities in accordance with the law; those legally included within the scope of demolition and land acquisition; those whose intended use has been altered without authorization; and other circumstances where mortgage registration is prohibited.

　 　VII. Regarding Loan Conditions

　　Strictly enforcing loan conditions is a necessary measure for controlling loan risks and smoothly promoting the pilot program of mortgage loans secured by the use rights of collectively-owned construction land in the pilot regions. The Measures set forth requirements regarding legally holding land-use right certificates, complying with overall land-use plans and urban-rural planning, and ensuring that no other priority claims or encumbrances have been established on the land. Moreover, banking and financial institutions are required to conduct thorough due diligence, carefully examining whether borrowers possess the requisite qualifications, whether the ownership of the collateral is clear, whether the valuation is reasonable, whether the land complies with planning regulations, and whether the collateral can be easily disposed of and converted into cash. These efforts aim to effectively mitigate loan risks and enhance asset quality.

　 　VIII. Regarding the Valuation of Collateral Property

　　The Measures stipulate that banking financial institutions shall establish a system for assessing the value of land-use rights for collectively-owned construction land intended for rural collective operations. External or internal valuation methods may be used to assess the value of such land-use rights when they are pledged as collateral. At the same time, banking financial institutions shall, in accordance with the provisions of the mortgage contract, strengthen the dynamic management and revaluation of pledged assets, ensuring that the collateral rights are genuine, lawful, adequately valued, and effective.

　　9. Regarding the Disposition of Collateral

　　The Measures stipulate that, upon the maturity of a loan, if the borrower has failed to repay the debt or if any of the circumstances specified in the agreement between the parties for exercising the mortgage right occur, banking and financial institutions may dispose of the mortgaged rural collectively-owned construction land use rights through lawful means such as discounting, auctioning, or selling off the mortgaged property. The proceeds from such disposal shall be优先 repaid to the banking and financial institutions.

　　X. On the Loan Guarantee Mechanism

　　The establishment of a loan guarantee mechanism will help share risks among banking and financial institutions and promote the pilot implementation of mortgage loans secured by the use rights of collectively-owned construction land. The Measures have established a comprehensive loan guarantee system for mortgage loans secured by the use rights of collectively-owned construction land, covering aspects such as guarantees provided by government-backed financing guarantee companies and risk compensation mechanisms, thereby providing robust support for the pilot program.

　 　XI. On the Responsibilities of Regulatory Authorities

　　The Measures stipulate that the administrative departments of natural resources and land in the pilot regions shall provide relevant services such as information inquiry and mortgage registration to both parties involved in the mortgage. The banking regulatory authorities shall reasonably determine calculation rules and incentive policies concerning risk weights, capital adequacy requirements, loan classification, and other related aspects. The CBRC and the Ministry of Natural Resources will strengthen guidance, supervision, and evaluation of the mortgage lending business involving the use rights of collectively-owned construction land for commercial purposes in the pilot regions.