On June 3rd, 2003, the People's Bank of China issued the Notice on Further Strengthening the Management of Real Estate Credit Business. This circular has some new policies and regulations on loans for real estate development enterprises: loans applied by commercial banks to real estate development enterprises can only be issued through real estate development loan subjects, and it is strictly forbidden to issue working capital loans for real estate development and other forms of loans. At the same time, commercial banks are required to issue real estate loans, which can only be used for local real estate projects, and cross-regional use is strictly prohibited. At the same time, the "Notice" once again reiterated that the self-owned funds of real estate development enterprises applying for bank loans shall not be less than 30% of the total investment of development projects. In terms of personal housing loans, the circular pointed out that commercial banks should focus on supporting residential projects that meet the purchasing power of low-and middle-income families, and appropriately restrict projects such as large-sized, large-area, high-grade commercial housing and villas. The notice stipulates that the current preferential housing loan interest rate and down payment ratio are not less than 20% for the purchase of the first self-occupied housing. For borrowers who purchase high-grade commercial housing, villas or more than two sets of commercial housing, commercial banks may appropriately increase the down payment ratio of individual housing loans, and implement it according to the loan interest rate of the same grade in the same period announced by the People's Bank of China, and will no longer implement preferential housing interest rates. In addition, the "Notice" stipulates that commercial banks can only issue individual housing loans to residents whose main structure has been capped.