Chinanews.com, January 11 (Chinanews Finance and Economics reporter Zuo Yukun) Although the overall recovery of the real estate market will take time, with the full release of favorable policies, real estate companies have already seen immediate results in financing.

　　From November 2022, the regulatory authorities have successively issued "three arrows" to the real estate industry, providing support from the three main financing channels of credit, bonds, and equity.

Judging from recent data, the financing of real estate companies has "broken the ice."

Data map: There are many tall buildings in the city.

Photo by China News Agency reporter Wang Dongming

In December, the financing market of real estate enterprises "raised the tail"

　　In 2022, the policies issued by regulatory authorities at all levels to stabilize the property market will continue to increase. In addition to continuously reducing the cost and threshold of house purchases on the demand side, real estate companies are also waiting for financial institutions to "open the gates and release the water."

　　"2022 can be divided into two stages. In the first half of the year, we will 'stabilize the economy' by 'stabilizing demand', and in the second half of the year, we will 'stabilize confidence' by 'guaranteeing supply'." Zhang Bo, director of the branch of 58 Anju Guest House Industry Research Institute, concluded.

　　Among them, the "three arrows" that support the financing of real estate companies have attracted attention.

　　The "first arrow" has been accelerated, and many banks have successively joined the queue to support the financing of real estate companies to grant intensive credit.

According to data released by the China Finger Research Institute in mid-December 2022, more than 60 banks have granted 4 trillion yuan in credit to more than 100 real estate companies.

　　The "second arrow" continues to advance. For example, China Bond Improvement Co., Ltd. has issued a bond credit enhancement letter to three private real estate companies, Longfor Group, Midea Real Estate, and Jinhui Group. 1.5 billion and 1.2 billion medium-term notes.

　　The response to the "third arrow" was positive, and within three days of "opening the gate", at least 8 real estate-related companies proposed plans to raise equity through non-public offering of shares.

According to statistics from the CRIC Research Center, in December 2022, key monitoring real estate companies involved a total of 48 M&A transactions, 32 of which disclosed the transaction value, and the total transaction consideration was about 52.8 billion yuan, a substantial increase of 72.4% from the previous month.

　　Judging from the various feedbacks of the "Three Arrows", more and more real estate-related enterprises have obtained financing "irrigation" opportunities.

　　"The 'first arrow' and the 'second arrow' generally focus on high-quality companies," said Yan Yuejin, Research Director of the Think Tank Center of E-House Research Institute, and the refinancing policy of the "third arrow" is of great help to some small-scale companies. The regional real estate enterprises have positive significance and help to obtain financing without threshold.

　　There is no doubt about the positive effect of the "three arrows" released, and it also led to a "swing" in the financing market in December.

　　According to the monitoring of the China Finger Research Institute, in December 2022, the non-bank financing of real estate enterprises will be 65.582 billion yuan, a month-on-month increase of 34.2%.

The main reason is that since November, the policy has strongly supported high-quality real estate companies to issue bonds for financing, and many private houses have successfully issued bonds for credit enhancement.

Data map: A building sand table displayed by a commercial housing sales center in Zhengzhou.

Photo by Han Zhangyun

Loose financing situation is expected to continue

　　"Under the background that the supply side of the industry is full of good news, the tight liquidity problem at the financing end of real estate companies will be significantly improved." The China Index Research Institute believes that the plan to improve the assets and liabilities of real estate companies will continue to be implemented, and the recently introduced housing support measures will continue in 2023. corporate financing policy.

　　"Various financing channels have been reopened, high-quality real estate companies will regain their vitality, the entire industry may usher in a wave of restructuring and mergers, and industry risks are expected to be further mitigated. In addition, the support of incremental funds for the project side and the 'guaranteed delivery of buildings 'The implementation will help stabilize residents' expectations." Zhang Bo said.

　　But what should not be overlooked is that, judging from the 2022 full-year data, the total annual financing of real estate companies was 824 billion yuan, a year-on-year decrease of 38%, and it was below 1 trillion yuan for the first time since 2016.

　　Looking forward to 2023, CRIC Research Center believes that the supply-side reform of real estate enterprises is coming to an end, and the overall financing environment of enterprises may be substantially improved under stable credit, and central state-owned enterprises and high-quality private enterprises will benefit significantly.

Since 2021, the amount of bonds issued by real estate companies has been less than the amount due for a long time, so the debt repayment of real estate companies has been under pressure. In the first three quarters of 2023, a wave of debt repayments still needs the attention of real estate companies.

　　"In 2023, real estate companies will still be under a lot of debt repayment pressure, and the risk of liquidity difficulties for some real estate companies has not yet been lifted." Liu Shui, director of corporate research at the China Finger Research Institute, pointed out that companies must seize the current financing window period and use financing to drive sales. end, promote the recovery of liquidity at the operating end, and fundamentally solve the liquidity problem.

　　As Liu Shui said, the risks faced by the supply side ultimately need to be revitalized by the demand side.

　　"The most important observation point at the bottom of the market will be back to the sales of commercial housing." Mingming, the chief FICC analyst at CITIC Securities, pointed out that under the joint promotion of demand-side and supply-side policies, commercial housing sales are expected to recover significantly in the second quarter of next year.

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