Observation on the Implementation of Financial Support to Stabilize the Economic Market
The policy has played a combined punch and the financial “stabilization of the property market” has been upgraded
Recently, the People’s Bank of China, the China Banking and Insurance Regulatory Commission, and the China Securities Regulatory Commission have successively issued a number of policies aimed at maintaining reasonable and moderate real estate financing and promoting the stable and healthy development of the real estate market. With the implementation of the policy, banks have successively signed strategic cooperation agreements with real estate companies and provided intentional credit lines, to bond financing and equity financing as the second and third arrows, and the financial “stabilization of the property market” has been continuously upgraded.
Many banks and real estate companies signed contracts intensively
Establish a “white list” of high-quality real estate companies in the region; provide arrangements such as extension of stock development loans for temporarily distressed real estate companies; optimize and expand the scope of application of the existing “green channel” model for credit approval…Recently, many banks have done a good job in dealing with The credit extension of real estate, on the other hand, deepens the diversified comprehensive financial services for real estate enterprises.
The six major banks have recently signed strategic cooperation agreements with real estate companies one following another, and the disclosed intentional credit lines total more than one trillion yuan. The signing objects include Vanke Group, Midea Real Estate, China Overseas Development, China Resources Land, Longfor Group, Gemdale Group and many other real estate companies.
National joint-stock banks and city commercial banks also provide diversified financial support for real estate companies. China CITIC Bank recently signed a “headquarters-to-headquarters” strategic cooperation agreement with 10 real estate companies including China Overseas Real Estate and China Merchants Shekou; Industrial Bank signed a strategic cooperation agreement with 10 real estate companies, providing a total of 440 billion yuan in intentional financing; Bank of Hangzhou Initiated strategic cooperation with real estate companies such as Greentown China, Binjiang Group, and Hangfang Group, with an intentional credit line of over 20 billion yuan.
The bank’s measures are to implement the spirit of the “Notice on Doing a Good Job in the Current Financial Support for the Steady and Healthy Development of the Real Estate Market” (hereinfollowing referred to as the “Notice”) issued by the People’s Bank of China and the China Banking and Insurance Regulatory Commission. “The recently issued “Notice” started to boost the real estate market from both sides of supply and demand. On the one hand, it gave reasonable financial support to real estate companies to ensure the normal operation of the supply side and maintain housing supply at a reasonable level. Demand, such as residents with rigid and improved needs, enter the market to buy houses.” Liang Si, a researcher at the Bank of China Research Institute, said.
“Guaranteed Building” financial services are further promoted
In the bank credit support, doing a good job of “guaranteed housing” financial services is also an important focus to support the stable and healthy development of the real estate market. Prior to this, the Ministry of Housing and Urban-Rural Development, the Ministry of Finance, the People’s Bank of China and other relevant departments issued measures to support development policy banks to provide special loans for “guaranteed delivery buildings”, implement closed operation, special funds for special use, and special funds for supporting overdue and difficult-to-delivery projects that have been sold The construction and delivery of residential projects has been accelerated, and the newly released “Notice” pointed out that financial institutions are encouraged to provide supporting financing support in accordance with the principles of marketization and rule of law.
The person in charge of the relevant department of the China Banking and Insurance Regulatory Commission said that as of now, the special loan work for “guaranteed buildings” has made staged progress, and the special loan funds have basically been invested in the project. The capital investment has driven the formation of a batch of physical workload, which has effectively promoted the construction of the project. deliver.
At the same time, various commercial banks have also taken action. Industrial and Commercial Bank of China first docked special loan arrangements, and actively explored supporting financing for the “Guaranteed Delivery Building” project. In a large central province with heavy tasks, more than 30 projects have been connected.
On November 25, Chongqing Three Gorges Bank issued a fixed asset loan of 100 million yuan to pay for the acquisition of an unfinished project of a real estate company in danger and promote the delivery of project construction. This means that Chongqing’s first “guaranteed delivery building” special loan supporting financing The loan has officially landed.
“Development-oriented policy banks provide special loans for ‘guaranteed delivery buildings’, which will help support the accelerated construction and delivery of residential projects that have been sold overdue and difficult to deliver. Commercial banks, as the most important fund providers, can provide ‘guaranteed delivery buildings’ financing support as soon as possible Promote the completion of the project and effectively protect the interests of home buyers, but we must also do a good job in project screening and risk prevention.” Liang Si said.
The second and third arrows are in full force
Financial “stabilization of the property market”, in addition to the “first arrow” to increase bank credit support, bond financing and equity financing as the second and third arrows have also begun to exert force.
The bond financing support tools for private enterprises have recently been postponed and expanded. According to previous news from the website of the NAFMII, under the policy framework of private enterprise bond financing support tools, China Bond Credit Improvement Investment Co., Ltd. issued letters of credit enhancement to three private real estate companies, Longfor Group, Midea Real Estate, and Jinhui Group. The three companies issued medium-term notes of 2 billion yuan, 1.5 billion yuan, and 1.2 billion yuan, and will provide continuous credit enhancement bond issuance services according to the needs of enterprises.
On November 28, the China Securities Regulatory Commission adjusted and optimized five equity financing measures for real estate-related companies, including resuming mergers and acquisitions and supporting financing of listed real estate companies, resuming refinancing of listed real estate companies and listed real estate companies, and adjusting and improving the listing of real estate companies in overseas markets. Policies, further play the role of REITs to revitalize the stock assets of real estate companies, and actively play the role of private equity investment funds.
On the evening of November 29, Fuxing Co., Ltd. announced that the company plans to issue shares to no more than 35 specific investors in a non-public manner, and the funds raised are intended to be used for the development of the company’s real estate projects. Shimao Co., Ltd. also issued a suggestive announcement of planning a non-public offering of shares, intending to raise funds from no more than 35 specific investors, and intends to use them for the development and repayment of real estate projects related to the company’s “guaranteed building and people’s livelihood”. The principal and interest of part of the open market debt and the supplementary working capital that meet the requirements of the refinancing policy of listed companies, etc.
The research report of CICC pointed out that the supply side has made breakthroughs from the “first arrow” bank credit support, the “second arrow” bond financing assistance to the “third arrow” equity financing loosening, with comprehensive tools and active efforts. It will help ease the industry’s credit difficulties and optimize overall liquidity, and will help boost market confidence in the short term and stabilize fundamentals in the medium and long term. (Reporter Zhang Mo, Xiang Jiaying)
(Zhang Moxiang Jiaying)
[Responsible editor: Tu Tian]