China News Agency, Beijing, November 22, title: China has played a financial combination to "stabilize the property market" and released three major signals

　　China News Agency reporter Pang Wuji

　　Recently, China's real estate financial policies have intensively released positive signals.

　　From the continuous reduction of personal housing loan interest rates and down payment ratios, to the introduction of 200 billion yuan (RMB, the same below) "guaranteed housing" special loans, to the expansion of the "second arrow" to support private enterprises' bond issuance, support for development loans, trusts Existing financing such as loans should be reasonably extended on the premise of ensuring the security of creditor's rights... Various support policies have been intensively implemented, covering almost the entire supply and demand chain of the real estate industry, including some "weak points" that may pose risks.

　　Where is the real estate market headed in the future?

How can the trapped real estate companies get out of trouble?

The reporter sorted out and found that this series of financial "combination punches" released three major signals:

　　First, it is clear that the real estate industry is an important part of the real economy and is of great significance to the healthy development of the economy.

　　At the 2022 Financial Street Forum Annual Meeting a few days ago, Yi Huiman, chairman of the China Securities Regulatory Commission, talked about real estate in the part of "Insisting on the focus of serving the real economy" and pointed out that at present, we must pay close attention to the difficulties and challenges facing the real estate industry and support the implementation of the improvement of high-quality real estate enterprises. The balance sheet plan will continue to support the reasonable bond financing needs of real estate companies.

　　Yi Gang, Governor of the People's Bank of China, also made it clear that the real estate industry is related to many upstream and downstream industries, and its virtuous circle is of great significance to the healthy development of the economy.

　　Experts generally believe that the real estate industry is a real economy, but in recent years there has been a trend of excessive financialization.

However, under the positioning of "housing to live in, not speculation", the real estate industry is returning to the attributes of the real economy.

Liu Shui, head of research at the Enterprise Division of China Finger Research Institute, believes that regulators regard real estate as the real economy and affirm that it is very important to the healthy development of the economy.

The clarification of the status of the real estate industry will help unify the thinking and understanding, increase the implementation of measures, and restore the market as soon as possible.

　　Second, financial institutions will increase financing support for housing-related enterprises.

　　Recently, the central bank and the China Banking and Insurance Regulatory Commission issued the "Financial 16 Measures" to support the stable and healthy development of the real estate market.

It involves a total of 16 measures in areas such as development loans, trust loans, M&A loans, guaranteed delivery of buildings, and bailouts of real estate companies.

Since then, financial institutions have significantly increased their financing support for real estate companies.

　　Leading real estate company Country Garden announced on the 22nd that a total of 1.463 billion shares have been successfully placed at a price of HK$2.68 per share to no less than six professional, institutional and or other investors. The net proceeds from the placement are estimated to be HK$3.872 billion .

Vanke announced on the evening of the 21st that it intends to apply for the issuance of new direct debt financing instruments of no more than 50 billion yuan.

Previously, the NAFMII had accepted Longfor’s 20 billion yuan bond shelf issuance and Seazen Holdings’ 15 billion yuan bond shelf registration issuance.

　　Liu Shui believes that since the second half of last year, the real estate market has undergone deep adjustments, some private real estate companies have defaulted on their debts, and financial institutions have a relatively high risk aversion sentiment towards private real estate companies.

With the support of a series of recent policies, the effect of financial institutions' support for real estate companies to issue bonds and financing policies has begun to show, and the financing environment for real estate companies is improving significantly.

　　Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Institute of Urban Planning, also pointed out that relevant departments have issued a clear signal that for enterprises that adhere to their main business, have stable financial conditions, and temporarily encounter difficulties, they must increase support for omni-channel financing.

　　Third, safeguard the legitimate rights and interests of housing consumers and support rigid and improved housing needs.

　　Since the beginning of this year, a number of policies, such as the reduction of mortgage interest rates and down payment ratios, and the "guaranteed delivery of housing" have all worked from the demand side to stabilize housing market expectations.

Mortgage rates are currently at historic lows.

According to the statistics of the Shell Research Institute, as of November 18, the mainstream interest rates for first-home loans in 18 cities have dropped to "3 prefixes" (less than 4%).

　　"Guaranteed delivery of buildings" has always been one of the key tasks for stabilizing the property market this year.

It is understood that, on the basis of the special loans for "Guaranteed Buildings" launched earlier, the People's Bank of China will launch a 200 billion yuan "Guaranteed Buildings" loan support plan for six commercial banks to provide zero-cost funds for commercial banks.

The deepening of the "Guaranteed Delivery" policy will help alleviate home buyers' concerns about unfinished off-plan properties, thereby boosting expectations.

　　Some experts reminded that on the one hand, it will take time for the policy to be transmitted to the demand side; on the other hand, it is not enough to rely solely on financial unilateral efforts to completely break the "shrinking cycle" in the real estate market.

The chain of the real estate industry is long, and stakeholders such as home buyers, local governments, and real estate companies interact and intertwine with each other, and a joint force needs to be formed.

　　In the future, the long-term development of China's real estate market will still have momentum.

The CR Research Center pointed out that new urbanization will be the biggest institutional dividend for the real estate industry, and the 19 major urban agglomerations and 6 metropolitan areas will be the core carriers of the real estate market.

There is no shortage of structural opportunities in the real estate industry.

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