Since the beginning of 2022, policies to "stabilize the property market" have been issued frequently in various regions.
Recently, Nanning of Guangxi, Zhongshan of Guangdong, Jinzhong of Shanxi, Yichang of Hubei, Zigong of Sichuan and many other places have successively released the new policies of provident fund, clearly relaxing the application and issuance policy of provident fund, including reducing the down payment ratio for second houses and increasing the loan amount.
According to the monitoring of the China Index Research Institute, as of late February, more than 40 cities have introduced real estate-related control policies.
In order to help real estate enterprises get out of the predicament, on December 20, 2021, the central bank and the China Banking and Insurance Regulatory Commission issued the "Notice on Doing a Good Job in M&A Financial Services for Key Real Estate Enterprises' Risk Disposal Projects".
The notice shows that banks are encouraged to carry out M&A loan business in a stable and orderly manner, focusing on supporting high-quality real estate enterprises to merge and acquire high-quality projects of large real estate enterprises that are in danger and in difficulty; increase support for bond financing, and support high-quality real estate enterprises to register and issue in the inter-bank market. Debt financing tool, the funds raised are used for mergers and acquisitions of key real estate enterprise risk disposal projects.
At present, the overall policy is still favorable. For the current leading real estate companies in difficult circumstances, it is conducive to resolving systemic risks and ensuring the delivery of houses.
Guotai Junan said that with the policy setting in early 2022 and the relaxation of pre-sale funds supervision, the second batch of central enterprises and high-quality private enterprises that can "survive" are now ushering in Hong Kong stocks. Guotai Junan believes that there is a greater probability of "surviving" characteristics of private enterprises. There are three, mainly reflected in: first, the leverage ratio and debt ratio are relatively low; second, since 2018, the development has been conservative rather than aggressive and leveraged to replenish inventory; third, there has been a record of successful financing since the end of 2021, It means that the regulatory level is more recognized and encouraged.
According to CRERUI data, in 2021, Country Garden will top the real estate sales list with a full-scale sales of 758.82 billion yuan.
In 2022, Country Garden has accumulated a total of 65.7 billion yuan in sales in the first two months, with sufficient cash available for good operations.
In the first two months of 2022, Country Garden achieved a total of 69.12 billion yuan in equity contracted sales, and the accumulated sales collection amount was about 65.68 billion yuan. The current collection rate is at the best level in the industry.
In addition, since March 26, 2021 and as of the announcement date, the controlling shareholder has increased its holdings of the company by a total of approximately 328.17 million shares.
Since 2022, Country Garden has continued to repurchase US dollar bills and redeem bonds in a timely manner, not only showing the market the company's abundant cash flow, but also sending a positive signal to the entire capital market.
According to statistics, since December 2021, Country Garden has issued a total of more than 2.5 billion direct financing products in the domestic direct financing market. Whether it is quota approval or bond issuance, it has been recognized and supported by regulatory agencies and investors. .
On March 1, Country Garden Real Estate's proposed issuance of medium-term notes with a total principal of 5 billion yuan has been approved for registration.
On March 3, Country Garden and China Merchants Bank signed a 15 billion yuan real estate M&A financing strategic cooperation agreement.
According to incomplete statistics, in 2021, the three major international rating agencies, Moody's, Fitch, and Standard & Poor's, will downgrade the ratings of real estate companies on a large scale, and will downgrade the ratings of Chinese-funded real estate companies more than 250 times within a year.
Against this background, Moody's and Fitch still maintain the "investment grade" rating of Country Garden, and Standard & Poor's also assigns Country Garden a BB+ rating, and an increase of one level is "investment grade" with a "positive" outlook.