The new policy of saving buildings was officially introduced
I don't know if you still remember, at the end of August this year, the first bank and the Ministry of Housing and Urban-Rural Development jointly held a meeting, at which the relevant systems for financial monitoring and financial supervision of real estate enterprises were elaborated in detail, providing "three red lines" for real estate enterprises
1. After deducting the advance receipts, the debt ratio is higher than 70%.
2. The net debt ratio is more than 100%.
3. The short-term and long-term cash ratio is less than 1 3
These "three red lines" are specially formulated in response to the current high leverage ratio of real estate enterprises, and the purpose is to restrict the financing of high-debt enterprises and encourage them to actively reduce leverage. Depending on the number of red lines touched by real estate companies, we have set relevant funding limits. As long as the "three red lines" are touched, the interest-bearing debt of enterprises will be strictly controlled and cannot be increased; If the "two red lines" are reached, the growth rate of interest-bearing debt should be strictly controlled, and the growth rate of interest-bearing debt should not exceed 5%; If only the "1 red line" is reached, the growth rate cannot exceed 10%; However, companies that have not touched this bottom line will also be limited to 15% of their loan interest rates. These "three red lines" not only put forward strict requirements for the debt level of real estate enterprises, but also strictly restrict the financing behavior of real estate enterprises, so as to ensure the healthy development of the real estate market.
Why should property developers be constrained? The root cause of this is the continuous expansion of the debt of China's real estate industry and the excessively high debt ratio. The debts of real estate developers are snowballing, and if left unchecked, the results will be very serious. In the past decade, while the real estate industry has been very profitable, with many real estate developers increasing their total assets more than tenfold, their liabilities and debts have been rising. At present, the profit prospects of real estate companies are uncertain, and cash flow is becoming more and more tight, and it seems that a serious debt crisis will occur in the next second, and there is even a danger of bankruptcy. For example, Evergrande, Fusheng, and Tahoe all have such problems when the capital chain is broken, and the deep root cause of these problems is their blind expansion and high debt ratio.
However, after more than two years of regulation, the real estate industry has taken on a new look. After nearly two years of continuous decline, the ** of many real estate projects has fallen back to the level before 2019 or 2016. This not only reflects the profound significance of the supervision of the real estate industry, but also reflects the obvious changes in the supply and demand of the real estate industry.
In such an environment, it is becoming more and more difficult for real estate developers to survive. In recent years, China's real estate development enterprises have frequently defaulted on loans, and many real estate enterprises have fallen into a cash flow crisis. Interest in land acquisition is not high, the property market is weak, and there is a shortage of funds in both the upstream and downstream of the industrial chain. Such a situation not only has a great impact on the operation of developers, but also has a great impact on the smooth operation of the entire real estate industry.
At the same time, the regulation of the real estate market has also brought tremendous pressure to banks. In the past, when the property market was booming, banks were happy to issue development loans to property developers. However, due to the increased risks, the financing policies of banks have also been tightened, not only reducing development funds, but also tightening the financing channels of real estate enterprises in all aspects. This is undoubtedly worse for real estate developers with tight cash flow.
In this context, relying solely on general bailout measures can no longer solve the problem, because the real estate industry is in urgent need of financing, so at the 2024 work conference, the State Administration of Financial Supervision has made "solving problems in key areas such as real estate" an important work goal.
China News **4024 made a profound analysis of this in an article entitled "The Ministry of Housing and Urban-Rural Development's Favorable Policies Frequently Occur, First-tier Cities Respond Quickly", and pointed out the important role of the work deployment meeting of the National Land Finance Work Leading Group hosted by the Ministry of Housing and Urban-Rural Development since the beginning of this year. This conference not only sets the tone for the next step of real estate work, but also the most authoritative guidelines for the future trend of the property market.
The article highlights that the current rescue measures in the real estate market are not only unprecedented, but also highly accurate and targeted. On the premise of maintaining the overall stability of the property market, we attach great importance to the liquidity risk of individual real estate enterprises, and strive to resolve the risk and prevent the risk from spreading. This move not only shows the accurate grasp of the real estate market policy, but also shows its ability to resolutely maintain the smooth operation of the real estate industry and effectively resolve risks.
It can be seen that the rescue measures of the real estate market have been promoted to a national strategic height, which gives the first departments at all levels and relevant parties a higher task, and issued a death order
1. Adhere to city-specific policies, precise policies, and one city-one policy, make good use of the supporting policy toolkit, give each city appropriate real estate management authority, and adjust it accordingly according to the actual situation.
2. Regarding the supervision of real estate, Ni Hong's house and the person in charge of the Ministry of Rural Affairs once made an analogy, saying that nine out of ten people are different. This time, the new trend of property market regulation and control this year is also regarded as conveying a strong message, that is, to implement the main position of the local government to the end.
What does this mean? In fact, because the traditional "one-size-fits-all" real estate regulation and control method has been unable to adapt to the special market needs and development status of different regions, the new regulation and control concept requires "adapting measures to local conditions", and the local government has introduced regulatory measures for the real estate industry in a timely manner in combination with local conditions to ensure the stable and healthy development of the real estate industry.
At the heart of the new strategy is further decentralization to the local community. In the past, the control of the real estate market was usually regulated by the state's macro-control, and it was implemented in various localities. But now, it is hoped that all localities can formulate a unified policy with the whole country according to their own national conditions, and can have a positive impact on the market. In short, it is necessary to lift the "tight spell", and the local government should formulate corresponding relief measures in combination with the specific local conditions to ensure that the real estate market returns to a stable level of development.
Obviously, this new real estate deal will hit the real estate market on a larger scale in 2024. In Guangzhou, for example, the 120-square-meter residence is completely restricted, and Beijing, Shanghai, Shenzhen, Hangzhou, and Suzhou have all relaxed the restrictions to a certain extent. Moreover, now that real estate is difficult to buy, many second-hand house sellers have to reduce prices, and finally lower the price of *** For this, some experts said that if the price is reduced at this time, it will be equivalent to giving it away in vain.