Our reporter Du Yumeng
The State Council executive meeting held on November 22 proposed, “Implement city-specific policies to support rigid and improved housing needs, and guide local governments to strengthen policies Publicity and interpretation. Promote special loans for guaranteed housing projects as soon as possible, encourage commercial banks to issue new loans for guaranteed housing projects, and strive to improve the asset and liability situation of the real estate industry and promote the healthy development of the real estate market. ”
Since this week, real estate companies have frequently received favorable policies for financing. On November 23, the central bank and the China Banking and Insurance Regulatory Commission officially announced 16 measures to promote the stable and healthy development of the real estate market. Later, after the "second arrow" was extended and the expansion policy was implemented, the first batch of credit-enhanced private real estate corporate bonds were issued in November. Released on the 24th. Affected by multiple good news, A-share real estate services, real estate development and other conceptual sectors once again performed brilliantly. As of the close of trading on November 24, the two major concept sectors mentioned above had risen by 2.02% and 2.04% respectively that day.
In this regard, many industry insiders interviewed by reporters from "Securities Daily" believe that this will help the real estate industry get out of trouble and accelerate the bottoming out.
Financial support comes with multiple arrows
"Guaranteeing the delivery of the building" has become the top priority
"Bank guarantees can replace pre-sale regulatory funds", "Second The issuance of the first batch of bonds by private real estate companies after the expansion of "Arrow", as well as the recent frequent statements from multiple departments on the real estate market and the implementation of relevant financial support policies, all seem to point to a keyword - "Guaranteed Delivery of Buildings."
Ye Yindan, a researcher at the Bank of China Research Institute, said in an interview with a reporter from Securities Daily that the current push for real estate companies to "guarantee the delivery of properties" is a necessary and key move to break the pessimistic expectations of the property market. In order to achieve "guaranteed delivery of buildings", it is first necessary to provide certain financial support to real estate companies to help them prevent and resolve liquidity risks.
Since the National Dealers Association issued a document on November 8 stating that it "supports bond issuance and financing of private enterprises, including real estate companies," the National Dealers Association has recently accepted the storage racks of many real estate companies. Registered and issued. Among them, Longfor Group’s 20 billion yuan storage rack project registration has been completed. At the same time, there is also ChinaBond Credit Enhancement Company's intention to accept corporate credit enhancement business. Up to now, ChinaBond Development Co., Ltd. has received credit enhancement business intentions from nearly a hundred private real estate companies through public business mailboxes, and is actively promoting business development in accordance with relevant mechanisms.
According to the latest news obtained by reporters, following the previous day’s ChinaBond Credit Enhancement Company’s issuance of credit enhancement letters to three private real estate companies, Longfor Group, Midea Real Estate, and Jinhui Group, on November 24, Midea Real Estate and Jinhui Group announced the issuance of medium-term notes of RMB 1.5 billion and RMB 1.2 billion respectively in the inter-bank market, and both were fully guaranteed by ChinaBond Credit Enhancement Company under the policy framework of the Private Enterprise Bond Financing Support Tool ("Second Arrow"). letter. This is also the first batch of credit-enhanced private housing company bonds issued after the implementation of the “Second Arrow” extension and expansion policy, marking a further step in releasing the effectiveness of the “Second Arrow” policy.
In addition, in response to relevant policies, many banks have successively released information this week saying that they are providing intentional credit lines to real estate companies. For example, a reporter from Securities Daily learned from Country Garden that on November 24, Country Garden signed a contract with Postal Savings Bank to establish a long-term strategic partnership. According to people familiar with the matter, the total credit line granted to Country Garden by three major state-owned banks will exceed 100 billion yuan. On the same day, ICBC also signed strategic cooperation agreements with 12 national real estate companies on a head-to-head basis, providing intentional financing totaling 655 billion yuan.
The financing support provided by regulatory authorities and financial institutions to real estate companies does not stop there. At the 2022 Financial Street Forum Annual Meeting held recently, Yi Gang, Governor of the People's Bank of China, said that in response to the risk exposure of some real estate companies in the early stage that led to late delivery of houses, a special loan of 200 billion yuan for "Guaranteed Delivery of Buildings" has been issued to support the construction of sold housing. Delivery, and study the establishment of structural policy tools to encourage commercial banks to support "guaranteed delivery of buildings". Yi Huiman, chairman of the China Securities Regulatory Commission, also said that at present, we must pay close attention to the difficulties and challenges faced by the real estate industry, support the implementation of plans to improve the balance sheets of high-quality real estate companies, continue to support the reasonable bond financing needs of real estate companies, and support real estate-related companies to carry out mergers, acquisitions, restructuring and Supporting financing supports companies with a certain proportion of housing-related businesses to carry out equity financing.
“Guaranteeing the delivery of buildings is currently the top priority for stabilizing the real estate market.” Zhang Bo, director of the branch of 58 Anjuke Real Estate Research Institute, said in an interview with a reporter from Securities Daily. Therefore, a series of recent real estate financial policies “Combined Boxing” all attach great importance to the issue of “guaranteeing delivery of buildings”, which is also an important measure to restore confidence in the real estate industry. As the subsequent reasonable financing needs of real estate companies are further met, the effect of "guaranteed delivery of buildings" will continue to appear.
Various policies are working together
"Supply-side" data may be improving
Data from the China Index Research Institute shows that since November, 29 cities including Hangzhou and Xi'an have The city has introduced property market support policies a total of 36 times, including optimizing purchase restriction policies, reducing down payment ratios, increasing provident fund amounts, and issuing home purchase subsidies.
According to the mainstream mortgage interest rate data in key cities released by Shell Research Institute, the mainstream first-home loan interest rate in the 103 key cities monitored by it in November was 4.09%, down 3 basis points from the previous month, and the second-home loan interest rate was 4.09%. The mortgage interest rate was 4.91%, basically the same as last month. As of now, mainstream first home loan interest rates have dropped to “3” in at least 18 cities. These include 6 second-tier cities and 12 third- and fourth-tier cities. Looking only at first-home loan interest rates, only 10 of the 103 cities mentioned above are higher than 4.1%.
Chen Wenjing, market research director of the Index Division of the China Index Research Institute, said in an interview with a reporter from Securities Daily that recently, both the central and local governments have intensively introduced favorable policies for the property market. On the one hand, it is reflected in the continuous follow-up of measures such as cost reduction and threshold lowering on the demand side of home buyers; on the other hand, it is concentrated on the relief of financing pressure on the supply side of real estate companies. However, judging from the October real estate data previously released by the National Bureau of Statistics, policy transmission still takes time.
“For the real estate market in November and December, the boosting effect of policies to stabilize the property market may be more reflected in aspects such as funding sources and construction starts, that is, accelerating the construction and delivery of existing projects, thereby driving The data on the area of new housing construction and the area of completed housing have improved to resolve real estate market risks. "Ye Yindan pointed out that since sales collections are still the largest source of funds for real estate companies, whether there will be a trend in the capital flow of real estate companies. The key to improvement and whether there will be a clear turning point in the property market depends on the recovery of real estate sales data. Based on the transmission chain of "funding - construction - sales - payment collection" in the real estate industry, it is expected that the real estate market will stabilize and pick up in the second quarter of next year.