Source: Securities Times Author: Wu Jiaming

On December 20,$SANSHENG HLDG (02183.HK)$The announcement stated that the Hong Kong Stock Exchange decided to cancel the company's listing status from December 27, 2023.

According to the announcement, trading of the company's shares has been suspended since May 16, 2022. According to section 6.01A (1) of the Listing Rules, the Company failed to comply with the resumption guidelines set by the Stock Exchange and resumed trading on or before November 15, 2023. On December 8, 2023, the Listing Committee decided to cancel the listing status of the company's shares on the Stock Exchange. According to the relevant regulations of the Hong Kong Stock Exchange, after 18 months of suspension of trading, Hong Kong listed companies will face the risk of delisting if they fail to complete the resumption guidelines on schedule.

According to data from Sansheng Group's official website, Sansheng Group was founded in 1988 and is headquartered in Fuzhou. It is an enterprise group with real estate as its main business and a moderate layout of industry and capital investment. Sansheng Holdings is a company listed on the main board of the Hong Kong Stock Exchange and once ranked among the top 100 listed housing companies in China. According to reports, in April 2017, Sansheng Holdings successfully entered Hong Kong stocks through a backdoor listing, becoming a listing platform for the real estate business under Sansheng Group.

According to the 2021 unaudited results previously announced by Sansheng Holdings, the Group achieved revenue of 9.9 billion yuan during the period, an increase of 12.8% over the previous year; profit attributable to the company's equity shareholders was 599 million yuan; and basic profit per share was 1.22 yuan. Since then, Sansheng Holdings has not disclosed its annual results.

The stock price of Sansheng Holdings before the suspension of trading was HK$3.98, with a market value of approximately HK$1.95 billion.

According to incomplete statistics, this is already the fourth housing company to be delisted from the Hong Kong Stock Exchange this year. Previously$XINLIKONGGUJITUAN (45952.HK)$,$NANHAIKONGGU (45818.HK)$,$CARNIVAL GROUP (00996.HK)$The listing status was cancelled by the Hong Kong Stock Exchange on April 13, November 16, and December 6, respectively.

On August 1, 2018, the Hong Kong Stock Exchange's newly revised “Listing Rules” came into effect. Among them, the “expedited delisting” mechanism stipulates that if the securities of the main board company are suspended for 18 months (Main Board “Listing Rules” section 6.01A) or the securities of GEM companies (that is, GEM companies) are suspended for 12 consecutive months (GEM “Listing Rules” section 9.14A), the Hong Kong Stock Exchange may cancel the listing status of the company concerned.

On the other side, there are housing enterprises that choose to repay their debts early to boost confidence. On December 20, there was some news$LONGFOR GROUP (00960.HK)$On the same day, the HK$2 billion syndicated loan was repaid ahead of schedule. The syndicated loan amounts to HK$15.3 billion and expires in January 2024. Previously, Longhu Group had already repaid HK$13.3 billion ahead of schedule. After this repayment, the loan was fully repaid early within 2023. In response, the reporter contacted the relevant person in charge of Longhu Group. The person said the above information was true.

“Early debt repayment can have three positive effects, namely proving that the company's capital situation and cash situation are better, while reducing the size of existing debt, and creating better conditions for subsequent operations and other financing work.” Yan Yuejin, research director of the Yiju Research Institute, said.

And on the evening of December 19,$COUNTRY GARDEN (02007.HK)$Country Garden Real Estate, a domestic debt issuer, issued an interest payment announcement. “22 Country Garden MTN002” plans to pay interest on December 26. The total amount of current bonds issued is 1 billion yuan, and the interest rate is 4.3%.

At the end of the year, the housing enterprise financing situation seemed to have improved. According to data from Kerrey, in November of this year, the financing scale of the 80 housing enterprises monitored by the agency increased 42% month-on-month to 30.276 billion yuan, the first recovery after two months of continuous declines; corporate debt issuance surged 264% month-on-month. A total of 11 housing enterprises successfully issued bonds, with a total amount of 21.913 billion yuan. Furthermore, since mid-late November, regulators have successively proposed a “white list” for housing enterprise financing and “no less than three,” and many banks have responded positively.

At the same time, the supervisory authorities have stressed many times that they should treat real estate enterprises with different ownership systems equally to meet the reasonable financing needs of real estate enterprises with different ownership systems, and that real estate enterprises operating normally should not hesitate to lend, withdraw loans, or cut loans.

Liu Shui, director of enterprise research at the China Index Research Institute, analyzed that increasing support for housing enterprise financing is not only to mitigate real estate risks, but also to promote the construction of a new model of real estate development and promote high-quality real estate development. Continued strengthening of the “three arrows” policy since this year will help improve the financing environment for real estate companies, improve industry expectations, and thus achieve the goal of risk prevention. In the future, it is expected that the detailed implementation of financing policies to support private enterprises will be introduced, such as supporting private housing enterprises to increase credit and debt issuance, expanding capacity and increasing, and speeding up the approval of equity financing for housing enterprises.

edit/lambor