Our reporter Li Zheng

　　Trainee reporter Yuan Chuanxi

　　It has been 252 days since Sanxun Group landed on the Hong Kong Stock Exchange on July 19, 2021. After that, no Chinese-funded real estate company has successfully entered Hong Kong.

　　Looking at the global capital market, Chinese real estate companies seem to be particularly keen on Hong Kong stocks.

　　"Listing in Hong Kong can open up the capital market in Hong Kong, China, and then expand financing channels such as corporate equity financing and overseas debt." Guan Rongxue, an analyst at Zhuge Housing Data Research Center, said in an interview with a reporter from "Securities Daily". The influence of corporate brand also has a greater role in promoting, and the platform for corporate display and play is larger, and market opportunities increase accordingly.

　　Chinese-funded real estate companies listed in Hong Kong are misfired

　　With the development of the real estate industry, Chinese-funded real estate companies have set off three waves of landing on the Hong Kong Stock Exchange.

From 2005 to 2007, benefiting from the improvement of the stock market and real estate market, the valuation of real estate companies was generally high. It was also thanks to this that the first wave of real estate companies such as Greentown China, Sino-Ocean Group, and China Jinmao listed on the Hong Kong Stock Exchange. Realize development and growth; from 2009 to 2010, the valuation of real estate companies was once again high, and the second wave of Chinese-funded real estate companies seized the opportunity to successfully list, among which Longfor Group, China Evergrande, Powerlong Real Estate, etc. are quite representative.

From 2018 to 2020, despite the cyclical fluctuations in the real estate market, the rapid growth of small and medium-sized real estate companies has set off a third wave of listing in Hong Kong.

　　After the third wave, the number of Chinese real estate companies that successfully listed in Hong Kong dropped sharply.

As of March 28, 2022, Chinese real estate companies have failed to land on the Hong Kong Stock Exchange for 252 days to achieve financing.

　　In response to the 252 days that Chinese-funded real estate companies went to Hong Kong to go public, Huang Lichong, president of Huisheng International Capital, said in an interview with a reporter from Securities Daily that this is first because the valuation of real estate companies in Hong Kong stocks has further decreased, and investors have The performance of the real estate industry since the second half of 2021 has lingering fears, resulting in real estate companies issuing shares in Hong Kong stocks, often encountering under-subscription; second, real estate companies such as Xinli Holdings defaulted shortly after listing, prompting more cautious regulatory approvals. At the same time, real estate companies The decline in overall operating indicators has also significantly increased the difficulty of obtaining approval.

　　"From the perspective of the general environment, affected by multiple factors such as the new crown pneumonia epidemic and inflation, the Hong Kong stock market fluctuated and weakened, and the overall number of new shares listed on the Hong Kong Stock Exchange also declined." A reporter from Securities Daily said that at the same time, most of the current filing companies are small and medium-sized real estate companies with small scale and insufficient operational stability. Many of them have high asset-liability ratios, high layout concentration, high financing costs, and relatively low profitability. Weakness and other issues, so it is more difficult to pass the material review of the Hong Kong Stock Exchange.

　　In addition, Huang Lichong believes that when various industries are often in a rising period, their affiliated companies can enjoy a relatively high valuation and easier listing and financing.

The current real estate industry has yet to recover.

In addition, since October last year, a number of "100 billion yuan housing companies" have defaulted on their debts one after another, and international rating agencies have downgraded the credit ratings of Chinese-funded housing companies. The impact is far-reaching and will not be reversed in the short term.

　　Liu Shui also said that multiple debt default events not only shaken the confidence of the domestic and foreign bond markets, triggering overseas rating agencies to downgrade the credit rating and outlook of real estate companies, but also had an impact on the bond prices of other similar companies, which also dragged down some companies. The refinancing ability of housing enterprises has exacerbated their liquidity risks.

　　Operating conditions determine the success or failure of an IPO

　　It should also be seen that after the current fundamentals of the property market are expected to recover, can the enthusiasm of Chinese-funded real estate companies to go public in Hong Kong can be rekindled?

And will the Hong Kong stock market regain confidence in Chinese real estate companies?

　　In this regard, the interviewed industry insiders have different views.

Huang Lichong believes that although many departments have successively launched policies to stabilize the property market since last year, considering factors such as the rebound of the epidemic this year, the potential risks faced by the real estate industry still need to be resolved urgently.

　　According to incomplete statistics, since the beginning of this year, more than 50 cities or regions across the country have issued new policies on the property market, including reducing the down payment ratio, increasing the upper limit of the loan amount, canceling the recognition of houses and loans, etc. to maintain the healthy development of the property market.

　　"The policy of stabilizing the property market will play a certain supporting role, and it may bring a little spring to the property market." Huang Lichong further said, but the real estate industry truly recovers in an all-round way, but also requires the performance of real estate companies to improve significantly and investors to regain confidence and other fundamentals. support.

"At that time. I believe that the Hong Kong stock market will open its arms again, and Chinese-funded real estate companies are welcome to IPO in Hong Kong."

　　Zheng Lei, deputy dean of the International New Economic Research Institute, also said in an interview with a reporter from Securities Daily that under the background of real estate regulation, real estate companies will still face considerable pressure to go public in Hong Kong. The industry environment needs to improve as a whole.

　　Liu Shui believes that the current real estate industry is in a stage of accelerated clearance and survival of the fittest. After this round of shuffling, the industry concentration is expected to continue to increase.

"Although the development of small and medium-sized real estate enterprises is not easy at present, the best among them still have the opportunity to stand out and achieve listing."

　　Yan Yuejin, research director of the Think Tank Center of E-House Research Institute, said bluntly that at present, it is difficult for Chinese-funded real estate companies to enter the market because the industry environment and financing environment have fundamentally changed.

"However, although it is difficult for large-scale development housing companies to go public in Hong Kong, some housing companies that are actively deploying business transformation, such as property management, affordable housing and other sub-businesses, still have the opportunity to win the favor of the market." (Securities Daily)