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事关支持房企融资!国有大行率先行动

It's about supporting the financing of housing enterprises! Major state-owned banks take the lead

券商中國 ·  11/27/2023 22:12

Source: Broker China

On November 27, according to the “CCB Today” public account, CCB recently held a bank-enterprise symposium to support the rational financing needs of real estate companies. Representatives from six housing enterprises, Longhu Group, Vanke Group, Xincheng Holdings, Binjiang Group, Midea Real Estate, and Dahua Group, attended the conference.

China Construction Bank said at the conference that it will work hand in hand with enterprises to better support the rational financing needs of real estate enterprises, increase domestic and foreign linkage services and mother-child collaboration for normally operating real estate enterprises, help enterprises improve liquidity through a full range of financial services such as credit support, investment banking services, bond investment, extension, and adjustment of repayment arrangements, help housing enterprises overcome the cycle, and do a good job of “securing buildings, protecting people's livelihood, and maintaining stability” to promote the stable and healthy development of the real estate market.

Also, according to reports from Surge News, on the same day, the Bank of Communications held a symposium with some real estate companies in Shanghai. At the symposium, the Bank of Communications exchanged views with representatives of participating housing enterprises to further support the rational financing needs of housing enterprises. Representatives from 15 housing enterprises, including Vanke, Greentown, Longhu, Midea Real Estate, Xincheng Holdings, Cinda Real Estate, Initial Shares, Zhuoyue, Lujiazui Group, Renheng Land, Dahua Group, Pudong Group, Binjiang Group, New Hope Real Estate, and Weixing Group, attended the conference.

It is worth noting that on the same day, eight departments including the central bank jointly issued the “Notice on Strengthening Financial Support Measures to Help Private Economic Development Grow”, proposing 25 specific measures from seven aspects. Among them, it is clearly proposed to implement policies such as the “16 Financial Rules”, maintain the stability of key financing channels such as credit and bonds, and reasonably meet the financial needs of private real estate enterprises.

Industry insiders believe that private housing enterprises, as an important component of the private economy, will still receive policy support in terms of continuing funding from key financing channels such as credit, bonds, and equity, and it is expected that a series of supportive policies will be introduced in the future.

CCB held a symposium on supporting housing enterprises to finance banking enterprises

On November 27, according to the “CCB Today” public account, CCB recently held a bank-enterprise symposium to support the rational financing needs of real estate enterprises. The banks and enterprises thoroughly discussed the real estate market situation, business development opportunities, and future development direction, discussed bank-enterprise cooperation, jointly addressed challenges, and created high-quality development. Representatives from six housing enterprises, Longhu Group, Vanke Group, Xincheng Holdings, Binjiang Group, Midea Real Estate, and Dahua Group attended the conference.

At the symposium, representatives of six housing enterprises shared the market situation, difficult challenges, and corporate coping strategies. Enterprises said that the state has recently introduced a series of support policies, banks and other financial institutions have responded positively and acted quickly, countercyclical adjustments are working, and the financing environment is gradually improving; the real estate market still has structural opportunities, and they still have firm confidence in the future. Currently facing phased difficulties and tight liquidity, market expectations need to be further stabilized. The next key step is to improve the level of refined management and product strength.

China Construction Bank said that the real estate industry is a pillar industry of the national economy. The large scale, long chain, and strong driving force are related to economic stability and people's livelihood issues. China's urbanization is still in the development stage. The number of new citizens is large, and the demand for rigid and improved housing has great potential. The “three major projects” such as affordable housing construction have spawned new investment opportunities. Therefore, the pillar position of the real estate industry will not change, and there is still a solid foundation and broad scope for the stable development of the industry in the long run.

China Construction Bank said it will work hand in hand with enterprises to better support the reasonable financing needs of real estate enterprises, increase domestic and foreign linkage services and mother-child collaboration for normally operating real estate enterprises, help enterprises improve liquidity through a full range of financial services such as credit support, investment banking services, bond investment, extension, and adjustment of repayment arrangements, help housing enterprises overcome the cycle, “protect buildings, protect people's livelihood, and maintain stability”, and promote the stable and healthy development of the real estate market. Regarding the suggestions and demands put forward by participating housing enterprises, China Construction Bank will carefully absorb research and continuously optimize products and services.

According to CCB, since this year, CCB has invested nearly 300 billion yuan in public real estate loans, nearly trillion yuan in personal housing loans, and investment and underwriting amounts in housing enterprise bonds have exceeded 30 billion yuan. For real estate enterprises operating normally, CCB resolutely does not hesitate to lend, draw on loans, and continue to lend, stabilize financial support, meet their reasonable financing needs, and give full play to its positive role in enriching market supply and stimulating market vitality.

China Construction Bank and housing enterprises unanimously stated that the Central Financial Work Conference has indicated the direction for the next stage of real estate work, and that banks and enterprises will work together to help build a new model of real estate development through ups and downs. Real estate companies will embrace transformation, take positive action, and return product positioning to the residential attributes of housing, with stable cash flow as the primary financial goal, quantitative input and output, sales and production, improving operational efficiency, and maintaining financial stability. China Construction Bank will continue to give full play to the responsibilities of major state-owned banks and their professional advantages in the field of “construction”, continue to explore new models of real estate financial services, support rigid and improved housing needs, treat them equally to meet the reasonable financing needs of real estate enterprises with different ownership systems, enable real estate enterprises to actively participate in the construction of the “three major projects” such as affordable housing, and promote the virtuous circular development of finance and real estate.

In response, Yan Yuejin, research director of the Yiju Research Institute, believes that the people invited to the conference this time are all high-quality private housing enterprises. The meaning of this signal is that banks will definitely do a good job of supporting such high-quality private housing enterprises in terms of financial support in the future. It is expected that there will be a series of supportive policies in the future. CCB's statement also shows that in the future, banks will make systematic efforts, including opening up a green channel for approval, lowering the prices of development loans and mortgages, making good use of the “three arrows,” creating four types of relief models, and launching special products such as operational property loans.

The supervisory authorities put forward specific support measures

It is worth noting that the supervisory authorities continue to increase their support for housing enterprise financing and have proposed specific support measures.

On November 27, eight departments including the People's Bank of China jointly issued the “Notice on Strengthening Financial Support Measures to Help Private Economic Development Grow”, which proposed 25 specific measures in seven areas, including continuously increasing investment in credit resources, unblocking private enterprise bond financing channels, expanding the scale of equity financing for high-quality private enterprises, increasing the supply of foreign exchange facilitation policies and services, increasing the enthusiasm of financial institutions to serve the private economy, optimizing supporting financing policies, and strengthening organizational implementation guarantees.

Among them, it is proposed to implement policies such as the “Notice on Accomplishing the Current Financial Support for the Stable and Healthy Development of the Real Estate Market” (“Financial Regulations”), etc., to maintain the stability of key financing channels such as credit and bonds, and reasonably meet the financial needs of private real estate enterprises.

In response, Liu Shui, director of enterprise research at the China Index Research Institute, believes that private housing enterprises, as an important component of the private economy, will still receive policy support in terms of capital continuity through key financing channels such as credit and bonds. Furthermore, the notice proposes to “reasonably increase the tolerance of non-performing loans for private enterprises, establish and improve a due diligence exemption mechanism for private enterprise loans, and fully protect the enthusiasm of grass-roots exhibitors”, and increase implementation through “due diligence exemption” to effectively support private housing enterprise financing.

In terms of bond financing support, the notice proposes, “Encourage China Bond Credit Enhancement Investment Co., Ltd., China Securities Finance Co., Ltd., and market institutions to promote private enterprise bond financing support tools to expand and stabilize stocks through guarantees to increase credit, create credit risk mitigation tools, and direct investment in private enterprise bond financing support tools in accordance with the principles of marketization and rule of law.” At the same time, the notice proposed “supporting private enterprises in issuing asset-backed securities to promote the revitalization of existing assets.”

Liu Shui believes that increasing credit to support private housing enterprises in issuing bonds and financing will cover more enterprises and benefit more enterprises. At the same time, private housing enterprises will be able to revitalize commercial real estate assets such as office buildings and shopping centers through REITs, which will help speed up the return of capital.

In terms of equity financing, the notice proposes to “support private enterprise listing financing and mergers, acquisitions and restructuring.” Liu Shui believes that a fixed increase in China Merchants Shekou and Huafa shares will be completed during the year, and a fixed increase plan for housing enterprises such as Daming City has been approved. In November, three departments including the central bank held a financial institution symposium to propose “supporting rational equity financing for real estate companies through the capital market.” It is expected that the “third arrow” to support private housing enterprise financing will continue to gain strength, and will speed up approval of equity financing for housing enterprises and increase support.

On November 17, the People's Bank of China, the General Administration of Financial Supervision, and the China Securities Regulatory Commission jointly held a symposium for financial institutions. They once again made it clear that they adhere to “two unwavering”, treat them equally to meet the reasonable financing needs of real estate enterprises with different ownership systems, and do not hesitate to lend, withdraw, or cut loans to real estate enterprises operating normally. Continue to make good use of the “second arrow” to support private real estate enterprises in issuing bonds and financing. Support real estate companies to make reasonable equity financing through the capital market.

Editor/Corrine

The translation is provided by third-party software.


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