Every move of Evergrande Group is still the focus of market attention. The reporter learned from Evergrande Group’s WeChat account that on May 5, Evergrande held a monthly working meeting of the group. Xu Jiayin, chairman of the board of directors of Evergrande Group, announced two key points at the meeting. Data: The sales in April were 3.09 billion yuan, and the target for delivery in May was 100,000 units.
'It's impossible to pay off debt without sales'
Xu Jiayin's speech shows that the group has started the resumption of work and production since the sixth day of the lunar new year. At present, 562 projects with guaranteed handover projects have been under normal construction, and 179 projects with guaranteed handover buildings are in the process of resumption of work and production.
In the future, we will continue to work hard to achieve the full and normal construction of all projects with guaranteed delivery, and resolutely complete the goal of delivering 100,000 buildings in May.
In terms of commercial housing marketing, Evergrande is deeply aware of the importance of sales.
Without sales, it is impossible to complete all the tasks of securing and handing over the building; without sales, it is impossible to get out of the predicament and pay off debts.
From September last year to March this year, the company's monthly sales were only 20 to 30 million yuan, and sales have basically stopped.
Evergrande launched sales twice in December last year and in February this year, but they were unsuccessful.
At the beginning of April, Evergrande took advantage of the favorable conditions for vigorous construction, carefully planned, and launched the marketing work for the third time.
"We succeeded this time, and achieved a brilliant sales of 3.09 billion yuan in April. The recovery of sales is too important, too important for Evergrande, for owners, upstream and downstream partners, and all creditors." Xu Jiayin said.
The effect of the policy has not been significantly transmitted to the market side
Recently, the adjustment of real estate policies in various places has also released positive market signals to the industry.
Previously, the People's Bank of China, the China Banking and Insurance Regulatory Commission, the China Securities Regulatory Commission and other departments have all issued measures to implement financial support for economic work, including real estate financial measures.
According to the official WeChat release of the central bank, on April 29, the People's Bank of China held a special meeting. In its statement on real estate financing and other policies, the meeting pointed out that it is necessary to implement the prudent management system for real estate finance, optimize real estate credit policies in a timely manner, and maintain real estate financing. Stable and orderly, supporting rigid and improving housing demand.
Li Yujia, chief researcher of the Guangdong Provincial Housing Policy Research Center, believes that the purpose of the central bank's emphasis on "implementing the prudent management system for real estate finance" is to keep the real estate market and industry stable and healthy.
In addition, with regard to maintaining a stable and orderly real estate financing, the "Notice on Several Measures to Support the Real Economy" issued by the Shenzhen Stock Exchange also mentioned the need to support the reasonable financing needs of real estate companies.
On May 5, Evergrande Real Estate Group announced that the "19 Evergrande 02" sale back amount was 4,828.06 million yuan, and the issuer could not resell the sale-back bonds.
The remaining scale of "19 Evergrande 02" is 5 billion yuan, the coupon rate is 6.8%, and the maturity date is May 6, 2024.
The issuance of this bond was completed on May 6, 2019, with an issuance scale of 5 billion yuan, a coupon rate of 6.80%, a bond term of 5 years, and the issuer's option to adjust the coupon rate at the end of the third year and the investor's option to sell it back.
According to the latest data released by the China Index Research Institute, the issuance of real estate corporate bonds dropped sharply in April, and the financing cost fluctuated slightly.
Data show that in April, the scale of real estate corporate credit bonds and overseas bond issuance dropped significantly year-on-year.
Among them, the scale of credit bond issuance was 36.887 billion yuan, down 35.96% month-on-month and 49.6% year-on-year.
In April, the scale of overseas bond issuance by mainland real estate companies was 2.885 billion yuan, a month-on-month increase of 0.94% and a year-on-year decrease of 80.46%.
In terms of financing costs, the financing costs of credit bonds and overseas bonds fluctuated slightly. The average interest rate of credit bonds was 3.48%, down 0.37 percentage points month-on-month and 0.95 percentage points year-on-year; the average interest rate of overseas bonds was 5.55%, up 1.49 percentage points month-on-month. percentage point, a year-on-year decrease of 0.35 percentage points.
As Xu Jiayin said, the recovery of sales is "critical", and the degree of recovery in the market also affects the sales of real estate companies.
Chen Wenjing, market research director of the Index Division of the China Index Research Institute, pointed out that the current policy environment has been significantly improved, and market confidence in some hot cities has been restored, but the effect of the policy has not yet been significantly transmitted to the market.