Recently, data from the China Index Academy on real estate industry financing revealed that total bond financing for the sector in the first six months of this year reached 315.88 billion yuan, a year-on-year increase of 21.7%. This marks the highest growth rate for the same period since 2021, breaking a five-year streak of annual declines.

This standout figure reflects deep-seated changes within the real estate industry. After five years of significant adjustment, the financing logic for real estate has fundamentally shifted, laying the groundwork for constructing a new development model.

Firstly, financing instruments have expanded, with asset securitization becoming a key channel.

Corporate financing is moving away from reliance on traditional credit bonds and bank loans, shifting towards asset-quality-driven approaches. The proportion of asset securitization financing, such as Asset-Backed Securities (ABS), is steadily rising, becoming a crucial support pillar.

China Index Academy data shows that in the first half of 2026, ABS financing by real estate companies reached 122.10 billion yuan, a year-on-year increase of 27.5%, accounting for nearly 40% of total bond financing during the period. Notably, in June, the proportion of ABS financing hit 58.4% of the month's total, surpassing credit bonds as the primary financing instrument for companies.

This structural change indicates that policy support for asset securitization is proving effective. Companies are transitioning from "borrowing based on corporate credit" to "financing based on asset quality." Currently, companies are accelerating the issuance of innovative instruments like REITs and holding-type real estate ABS, converting heavy assets such as rental apartments and commercial complexes into tradable financial products. This approach not only broadens financing channels but also helps convert underlying assets into long-term equity or quasi-equity capital, enabling the replacement of debt with "longer duration and lower cost." Compared to traditional tools like credit bonds and bank loans, this can significantly reduce interest-bearing debt, alleviate liquidity risks, and build a more stable financial safety cushion for companies.

Secondly, the financing model has shifted from "headquarter-to-headquarter" to a "project-based" approach.

The "headquarter-to-headquarter" model refers to financial institutions providing credit directly to a real estate company's headquarters, relying on the group's corporate credit for centralized borrowing, repayment, and batch lending. Essentially, funds flowed to entities with larger land reserves, higher sales volumes, and better credit ratings.

Now, the financing model has fully transitioned to "project credit." Financial institutions evaluate each individual project independently, using asset collateral and closed-loop supervision to control risk, ensuring funds follow the project. For instance, the recently released Guangzhou City Housing Development "15th Five-Year Plan" (Draft for Comments) proposes strengthening financial coordination, advancing reforms in real estate development financing methods, and promoting a shift from corporate credit reliance to meeting reasonable project-specific financing needs.

This transformation impacts the real estate industry in two key ways. On one hand, local governments are establishing real estate financing coordination mechanisms, including high-quality projects in "whitelists" for targeted credit, isolating group and project risks. On the other hand, the logic of financing risk control has moved down to the project level, forcing companies to return to operational fundamentals and evaluate project-specific economics. In other words, companies must accurately assess each project's location, product strength, and cash flow balance, securing financial support based on individual project profitability and turnover. This fundamental change in the underlying financing model signifies the end of the "scale is king" era, pushing the industry from expansion towards quality improvement.

Thirdly, financial support has shifted from incremental development towards urban renewal and revitalizing existing stock.

Current housing demand has shifted from "having or not having" to "being good or not good." Financial institutions are no longer providing capital for companies to leverage heavily for land acquisition. Instead, financial flows are being channeled into the existing stock market.

Data from the National Development and Reform Commission shows that in 2026, 97 billion yuan of central budget investment was allocated for urban renewal, along with 160 billion yuan in ultra-long-term special government bonds to support underground pipeline network upgrades. Meanwhile, special-purpose bonds are being precisely targeted. China Index Academy data indicates that in the first quarter of 2026, issuance of urban renewal-related special-purpose bonds reached nearly 120 billion yuan, one-third of the total for the entire previous year, up 7% year-on-year. Additionally, local governments have announced plans to use special-purpose bonds to repurchase or acquire over 5,800 parcels of idle land, involving a total value exceeding 780 billion yuan. These figures clearly show that financial resources are no longer broadly stimulating new land purchases but are flowing towards revitalizing existing assets, acquiring and renovating affordable housing, and building green, smart, "good houses."

Guided by such policies, the real estate industry is accelerating the construction of a new development model. On one hand, a company's core competitiveness is shifting from land acquisition expansion to the meticulous operation of existing assets and the enhancement of "good house" product strength, officially entering a phase of endogenous growth driven by both product and operational capabilities. On the other hand, companies are transitioning towards "asset-light, operation-heavy" models. By revitalizing existing projects like rental apartments and commercial properties, they aim to open up the entire "investment, financing, management, and exit" chain, optimize balance sheets, and strive for a lighter operational path.

In summary, the implementation of new financing mechanisms, deeper revitalization of existing stock, and improved integration of production and finance will collectively drive the real estate industry into a new cycle of stable development, injecting new momentum into the stable operation of the macroeconomy.