Since the end of 2022, policies such as "three arrows", "16 financial articles", and "three not less than" have comprehensively supported the financing of real estate enterprises, but many real estate companies are still facing greater financing pressure. Recent data shows that Evergrande Real Estate has been forced to enforce 1.3 billion, with a cumulative amount of more than 46 billion. For shareholders, from 10:18 a.m. on January 29, China Evergrande's ** will enter a new round of suspension. Prior to this suspension, China Evergrande's total market capitalization was only HK$2.2 billion.
From Evergrande's recent developments, it is not difficult to see that the real estate industry is still in deep water. Based on this, in the past January 26, the Ministry of Housing and Urban-Rural Development held a meeting on the deployment of the urban real estate financing coordination mechanism, which proposed to accelerate the implementation of the urban real estate financing coordination mechanism, support the development and construction of real estate projects, and fully give the autonomy of urban real estate regulation and control, and cities can adjust real estate policies according to local conditions. The meeting also emphasized that before the end of January 2024, the first batch of real estate project whitelists may be implemented and loans will be sought.
Subsequently, in the past week, Nanning City and Chongqing in Guangxi have taken the lead in landing the "white list" of real estate projects. Among them, Chongqing announced that it has established a real estate financing coordination mechanism, and has sorted out the first batch of 314 real estate project "white lists", with a financing demand of about 83 billion yuan. From the perspective of the degree of advancement, the speed of the introduction of the "white list" is very even, exceeding many people's expectations. It is expected that in the next period of time, various local cities will successively introduce "white lists", which is conducive to the improvement of the financial environment of real estate, and will be more accurate and effective.
In addition to the white list, the property market in various places has ushered in a new round of policy adjustments to restrict sales and purchases. On January 30, Shanghai optimized the housing purchase restriction policy to support the purchase of houses by single people who are not registered in Shanghai. On the same day, Suzhou City also stated that the purchase of new houses and second-hand houses will not be subject to qualification review. On January 27, Guangzhou lifted the purchase limit of units of more than 120 square meters. So far, Guangzhou, Shanghai, and Suzhou have all adjusted their purchase restriction policies.
At the same time, banks and other financial institutions quickly followed. Recently, China Construction Bank said that it will start the business process as soon as possible for the support projects pushed by the real estate financing coordination mechanism; For projects that are temporarily difficult but can basically balance funds, the loan plan will be optimized, the capital chain will be stabilized, and market confidence will be stabilized. The Industrial and Commercial Bank of China said that it will further strengthen the precise docking with various real estate enterprises in accordance with the requirements of the coordination mechanism, improve the green approval channel within the bank, optimize the approval process and shorten the approval time limit.
Bozhong Investment believes that the urban real estate financing coordination mechanism, on the one hand, is conducive to giving dimensional support to real estate projects, isolating the debt of the group company from the development and operation of the project company to a certain extent, and optimizing the financing efficiency; On the other hand, direct support for the project and special funds will reduce the risk of project shutdown, safeguard the rights and interests of home buyers, and enhance the confidence of home buyers.
In terms of the "three major projects", it was also specifically mentioned at the meeting on the 26th that banks and other financial institutions will be guided and required to vigorously support the construction of the "three major projects", and the physical workload will be required to be formed as soon as possible. In the future, we will establish and improve the housing system of "security + market", establish a coordination mechanism for people, housing, land and money, and effectively observe the policy will to implement the "three major projects".