Real estate loans "double-up", bond issuance returns to normal-
real estate financing conditions continue to improve
our reporter Chen Guojing
In the past two months, real estate corporate financing has gradually returned to normal.
The reporter learned from the financial management department and many banks that in November, the real estate financing of financial institutions continued to "double up" compared with the previous month and the previous year.
On the basis of the sharp rebound in October, real estate loans in November continued to maintain a momentum of double-ups compared to the previous month and year-on-year.
Since November, many real estate companies have registered to issue debt financing in the inter-bank market, and the scale of financing has increased substantially compared with October.
Industry insiders believe that with the gradual clarity of the short-term impact of the Evergrande incident, the industry is expected to further improve, and the financing of real estate companies by financial institutions has returned to a normal state.
The scale of financing increased substantially from the previous month
The China Interbank Market Dealers Association held a symposium with representatives of real estate companies on December 10.
This is the second time that the Association of Dealers held a symposium with representatives of real estate companies after November 9, which signaled to the market that the financing environment for real estate companies will continue to improve.
According to people who participated in the real estate company representative seminar of the Association of Dealers on December 10, the short-term risks of individual housing companies will not affect the normal financing function of the medium and long-term market. The Association of Dealers will focus on supporting companies that comply with the real estate control policies to register and issue medium-term managers. Maturity debt financing tools. The raised funds are first used to supplement the funding gaps of sold projects under construction, and used for real estate projects or asset equity acquisitions, support the protection of buildings, the people’s livelihood, and stability, and actively meet the reasonable financing needs of real estate, and promote The real estate industry has a healthy development and a virtuous circle.
Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said that the symposium released a signal of continuous improvement in the financing environment of the real estate market, which will help alleviate the financial pressure of real estate enterprises and prevent and resolve risks.
Judging from the recent bond issuance, the debt financing environment for real estate companies is gradually picking up.
Data shows that in November, real estate companies have issued 49 bonds (including asset-backed bonds) in the domestic market, 20 more than in October; the total face value of the issuance reached 48.248 billion yuan, which was 26.3 billion yuan more than in October. An increase of about 120%.
In terms of bond types, the real estate bonds issued in November are mostly medium-term notes and ultra-short-term financing bonds in the inter-bank market.
"The financial situation of real estate companies has eased slightly." Xia Dan, a senior researcher at the Financial Research Center of the Bank of Communications, analyzed.
At the end of September, the third quarter regular meeting of the Monetary Policy Committee of the Central Bank and the real estate finance work forum of the Central Bank and the China Banking and Insurance Regulatory Commission clearly stated that "maintaining the healthy development of the real estate market and safeguarding the legitimate rights and interests of housing consumers".
The effect of the policy has already appeared in the funds of real estate companies in October.
Xia Dan said that although the year-on-year growth rate of funds in place for development enterprises continued the downward trend since the beginning of the year, the rate of decline has slowed down.
Among several major sources of funds, the growth rate of self-raised funds and personal mortgage loans both declined by 1 percentage point, which was significantly slower than before.
"The policy level is from the perspective of preventing risks and guaranteeing rigid demand, correcting the phenomenon of partial over-tight credit in the real estate sector in the early stage." Xia Dan predicts that the effect of loosening the credit margin will gradually appear at the end of the year, and the situation of over-tightening of funds for real estate companies will tend to As it eases, the difficulty for residents to obtain medium- and long-term loans will also be reduced.
Chinese real estate companies began to repurchase overseas bonds
"Recently, domestic real estate sales, land purchases, financing and other behaviors have gradually returned to normal. Some Chinese real estate companies have begun to repurchase overseas bonds, and some investors have also begun to buy US dollar bonds of Chinese real estate companies." The relevant person in charge of the People's Bank of China Recently said.
Since the beginning of this year, there has been an increase in real estate corporate bond defaults. Affected by the credit risk events of individual real estate companies, the Chinese dollar bonds of real estate companies once fell sharply, which caused widespread market concern.
Regarding the decline of Chinese-funded US dollar bonds, Zou Lan, Director of the Financial Markets Department of the Central Bank, said earlier that due to the recent impact of risk events such as the defaults of individual real estate companies, the price of US dollar bonds of overseas real estate companies has dropped significantly. The natural reaction after a breach of contract occurs.
At present, relevant departments have paid attention to the changes in the US dollar bond market for overseas real estate companies, and will urge bond-issuing companies and their shareholders to strictly abide by market discipline and rules, and in accordance with the principles of marketization and rule of law, to properly handle their own debt problems and actively perform them. Statutory debt service obligations.
In the past two months, many Chinese real estate companies are accelerating the repurchase of overseas US dollar debt.
On November 22, Xincheng Holdings announced that it had redeemed part of the US$291 million debt in advance.
Zhengrong Real Estate also issued an announcement on the same day that it would further buy back US$4 million in senior notes and US$1 million in senior perpetual capital securities.
Recently, Zhengrong Real Estate has repurchased many times.
On November 11, Zhengrong Real Estate repurchased the 2022 Notes II with an amount of USD 1 million.
At the same time, Zhengrong Real Estate repurchased the 2022 Notes III with an amount of 3.55 million U.S. dollars.
On November 16, Zhengrong Real Estate stated that it had completed the redemption of US$200 million senior notes due in 2021.
In the past two months, real estate companies such as Zhongliang Holdings, Logan Group, and Agile have repeatedly repurchased US dollar debt.
Zou Lan said that some Chinese real estate companies have begun to repurchase overseas bonds, which is expected to play a positive role in alleviating market tensions and restoring market confidence.
In addition, some investors have also begun to buy US dollar bonds from Chinese real estate companies.
The Goldman Sachs investment portfolio management team recently stated that it has been increasing “moderate risk” investment assets by buying high-yield US dollar bonds issued by Chinese real estate development companies.
BlackRock stated in the "Fourth Quarter Asian Fixed Income Quarterly Outlook" that it will adopt a diversified investment approach to allocate Chinese real estate bonds, and is optimistic about developers with more reliable funding channels and less likely to face refinancing problems next year.
Real estate financing will remain stable
This year's Central Economic Work Conference emphasized that it is necessary to adhere to the positioning of "the house is for living, not for speculation" and strengthen anticipation and guidance.
Support the commercial housing market to better meet the reasonable housing needs of buyers, and implement city-specific policies to promote a virtuous circle and healthy development of the real estate industry.
Industry experts believe that in the future, while adhering to the positioning of "housing and not speculating", financial institutions should continue to implement the differentiated housing credit policy of "policy by city" and maintain the stable operation of real estate development loans and personal housing mortgage loans.
Wen Bin, the chief researcher of China Minsheng Bank, said that the principle of "no speculation in housing and housing" has not changed.
At present, the regulatory authorities have adopted some policy fine-tuning, but the purpose is still to maintain the stable and healthy operation of the real estate market.
From the perspective of banks, under the premise of compliance, increasing development loans and mortgage loans will help the real estate market to run smoothly and healthily.
Recently, the statement of the financial regulatory authorities has once again sent a "stability" signal.
“The short-term risks of individual real estate companies will not affect the normal financing function of the medium- and long-term market.” The People’s Bank of China Governor Yi Gang said that the People’s Bank of China has always insisted on creating a fair market environment and will urge relevant companies and their shareholders to follow the law and the market. According to the requirements of the rules, we should properly handle our own debts, and protect the interests of various creditors in a fair manner in accordance with the law.
Regarding real estate development loans and housing mortgage loans, the China Banking and Insurance Regulatory Commission recently stated that it will earnestly implement relevant national policies and guide bancassurance institutions to provide financial services to the real estate and construction industries under the premise of implementing the prudent management of real estate finance.
At this stage, it is necessary to focus on satisfying the mortgage needs for first homes and improved housing, reasonably issue real estate development loans and M&A loans, increase support for guaranteed rental housing, and promote the steady and healthy development of the real estate industry and the market.
“Real estate regulation and control is the word'stability'.” said Zhou Maohua, a macro researcher at the Financial Markets Department of China Everbright Bank. Hierarchical housing needs to promote the healthy development of real estate in the medium and long term.
Chen Guojing
Chen Guojing