(Original title: Hong Kong stocks and mainland real estate stocks collectively fell, KWG Taifu placed over 200 million shares at a discount of nearly 15%)
News from the Financial Associated Press on December 19 (Editor Hu Jiarong)Most of the mainland property stocks fell today, among which KWG Group (01813.HK), Hopson Development Group (00754.HK), and Yuzhou Group (01628.HK) fell by 12.29%, 11.09%, and 7.27%, respectively.
Note: Performance of Chinese property stocks
Most of the domestic real estate stocks have fallen, which may be related to the frequent placement and fundraising of real estate stocks in the near future. The latest example is KWG Group, which issued a placement announcement on Sunday.
Note: KWG Group’s placement announcement
KWG Group announced on Sunday that it has entered into an agreement on the placement and subscription. It intends to place 235 million shares first-hand, equivalent to regarding 7.38% of the issued share capital; the price per share is HK$2.01, a discount to last Friday’s closing price 14.83%; the net proceeds are 467 million yuan, which is intended to be used for refinancing of existing debt and general corporate purposes.
Affected by this, KWG Group’s share price fell nearly 15% in early trading. As of press time, KWG Group fell 12.29% to HK$2.07.
Note: Trend of KWG Group
In fact, real estate companies have been frequently affected by positive news recently, and the current stock price has rebounded sharply compared to the previous low point. At the same time, many real estate companies, including KWG and Country Garden, have opened financing channels one following another, and the market has paid close attention to this.
Haitong International recently pointed out that as long as there is sufficient subscription demand, most domestic real estate developers of private enterprises will consider issuing new shares. Although the amount of funds raised in the placement in the second half of this year is very small, the developer still hopes to continue the placement, because the survival of the company is more important than the substantial dilution of the net asset value per share, and the developer currently has limited overseas financing channels, and overseas financing can help developers repay overseas dollar debt.
Regarding when real estate finances will improve, Haitong International pointed out that mainland real estate investment is still low and is unlikely to improve in the rest of 2022. Although the financial situation of developers may improve with the recent relaxation of policies, I believe this This improvement is likely to appear broadly from the first quarter of 2023.
The real estate market confidence has not yet repaired the short-term downturn or will continue
Although the frequent good news before, the real estate company recovered blood. Orient Securities pointed out that the bailout under the principle of marketization and rule of law does not create credit itself, and the key to subsequent determination of corporate credit restoration is asset prices and the speed of sales. Demand-side policies are also continuing to increase, and the relaxation of policies such as housing and loan approval has further expanded to core cities such as Hangzhou and Chengdu. The credit of buyers has not been fully restored, and the inertial decline in sales may continue in the short term.
The National Bureau of Statistics also released data on the first 11 months of real estate on the 15th, of which the national real estate development investment was 12,386.3 billion yuan, a year-on-year decrease of 9.8%; of which residential investment was 9,401.6 billion yuan, a decrease of 9.2%. The area of newly started housing was 1,116.32 million square meters, a decrease of 38.9%. Among them, the newly started residential area was 817.34 million square meters, a decrease of 39.5%. The area of housing completed was 557.09 million square meters, a decrease of 19.0%. Among them, the completed residential area was 404.42 million square meters, down 18.4%.
In terms of commercial housing sales and pending sales, from January to November, the sales area of commercial housing was 1,212.5 million square meters, a year-on-year decrease of 23.3%, of which the residential sales area decreased by 26.2%. The sales of commercial housing were 11,864.8 billion yuan, a decrease of 26.6%, of which the sales of residential buildings decreased by 28.4%.
