Evergrande boss Xu made a big move again in the middle of the night.

According to media reports, Xu Jiayin, chairman of Evergrande Group, presided over the group's marketing conference, announcing a 30% discount on all Evergrande properties across the country from September 7 to October 8, and revealed that "Golden Nine and Silver 10" for two months. monthly sales will sprint 100 billion yuan.

Xu Jiayin presided over the group marketing conferenceAnnounce a 30% discount for Evergrande's national real estate.

According to Leju Holdings Ltd's financial and economic report, Evergrande held a marketing conference at 10 o'clock last night, at which Xu Jiayin formally issued a marketing "military order" for September and October-- a monthly sales target of 100 billion yuan, and a "gold, nine and silver ten" to sell 200 billion. And launched a series of promotional "combination punches."

"Golden Nine and Silver Ten" has been a major opportunity for major housing enterprises to achieve annual sales over the years. In order to achieve a rush to collect, Evergrande offered the strongest national real estate discount in history. At the same time, it also offered multiple additional discounts such as 2000 per cent for online sales and up to 12 per cent discount at the end of the day.

According to reports, the core contents are as follows:

1. Evergrande has a 30% discount across the country, covering at least 600 properties across the country
two。 In September and October, Evergrande's monthly sales target is 100 billion yuan.
3. The above leaders of Evergrande headquarters and regional company departments have the authority to sign and approve an additional 4% discount on the basis of public offers.
4. The above policies are valid from September 7 to October 8.
The preferential policy of deducting 20, 000 yuan against 5.2000 yuan will continue to be implemented.
6. Additional discount will be given according to the removal rate of each building, up to a maximum discount of 12%.
7. All the buildings in the country offer 10 sets of special prices every day, with an extra 3% discount.
8. New home buyers are exempt from property management fees for three years.
9. In the next 30 days, Evergrande will add at least 40 pure new stocks to enter the market.

Take an Evergrande house with an original price of 1 million as an example, if you enjoy all the discounts, you only need to buy about 580000 now. It is said that behind such a strong promotion, Evergrande's goal is obvious-to grab sales, get the money back and reduce debt.

Affected by the epidemic, in February this year, Evergrande announced that it would enjoy a 25% discount on residential properties sold nationwide from February 18 to February 29, 2020.

On August 31, China Evergrande Group released its results for the first half of 2020, with operating income of 266.6 billion yuan, up 17.5% from the same period last year, and net profit of 14.8 billion yuan, down 46% from the same period last year. On a month-on-month basis, however, Evergrande's net profit in the first half of this year was about 1.3 times higher than in the second half of last year.

In terms of sales, Evergrande took the lead in implementing "online sales" in February this year, creating a closed-loop model that combines online and offline. In the first half of the year, Evergrande achieved sales of 348.8 billion yuan (of which 80%, or about 280 billion, was brought by online sales), an increase of 24% over the same period last year. The sales rebate was 312 billion yuan, an increase of 67% over the same period last year, and the payback rate was 89.4%. All the data reached an all-time high.

What does Evergrande's move mean?

On August 20, the Ministry of Housing and Construction and the Central Bank held a forum on key real estate enterprises in Beijing. The meeting pointed out that the central bank, the Ministry of Housing and Construction, together with relevant departments, have formed key real estate enterprise fund monitoring and financing management rules on the basis of extensive consultation in the previous period.

It is expected that in the next few months, housing enterprises will step up the promotion of housing sales to withdraw funds, in order to keep the business area stable. For small and medium-sized housing enterprises or not included in the monitoring and pilot enterprises will also have an indirect deterrent effect. In addition, the new financing rules are also a warning to financing aggressive housing enterprises, through the fine control of the scale of interest-bearing debt of housing enterprises, indirectly guide the gradual return of the land market.

The forum made clear the rules of capital monitoring and financing management of key real estate enterprises, commonly known as the "three red lines" in the industry.

These "three red lines" include: the asset-liability ratio of real estate enterprises excluding advance payment shall not be greater than 70%; the net debt ratio of real estate enterprises shall not be greater than 100%; and the "cash-to-debt ratio" of real estate enterprises is less than 1.

The "three red lines" means that the financing curse has suddenly tightened, which is self-evident for housing companies that have previously achieved rapid development through "high leverage".

With regard to the impact of the tightening of financing on Evergrande, Xia Haijun, president of Evergrande, said, "in recent years, the state has achieved very good results in real estate regulation and control. Property prices, land prices and expectations have all stabilized. Evergrande Group firmly supports the real estate regulation policy and is strictly close to the regulatory indicators. "

Xia Haijun said that in the second half of the year, Evergrande will continue to reduce its debt with maximum determination and efforts: on the one hand, increase sales and sales rebates, and this year's internal sales target is 800 billion yuan; on the other hand, strictly control the scale of land reserves. Strive to reduce an average of 30 million square meters per year. "the negative growth of land reserves every year can save some money. "

Real estate policy continues to signal tightening

Since the middle of the year, property policy has repeatedly issued signals of tightening. At the central level, the Politburo meeting in April and July continued to make it clear that the attitude of "housing speculation" remained unchanged. The July real estate work forum stressed the need to attach great importance to the new situation and problems in the real estate market. Six specific requirements are put forward, such as financial and fiscal policies, market monitoring mechanism, market chaos and housing security for residents.

At the local level, the regulation and control of the property market has been introduced intensively since July, with emphasis on stabilizing land prices, guiding housing speculation, and ensuring rigid housing demand.

At the regulatory level, the central bank, the Bancassurance Regulatory Commission and other financial authorities pay attention to the excessive or illegal inflow of funds into real estate, and have formed the rules for fund monitoring and financing management of key real estate enterprises. The Ministry of Housing and Construction emphasizes "unified ideological understanding". Improve the political position ", clear the urban subject responsibility and provincial monitoring and guidance responsibility.

Liu Jieqi, a real estate analyst at Sino-Thai International, pointed out that the policy tone of controlling excessive capital inflows into real estate is clear, and the stock market has not rebounded after the interim results, which is also affected by the real estate policy. and this year, market funds are concentrated in growth stocks such as technology. "if real estate wants to rise, it needs to control the epidemic, stabilize the macro-economy, increase the certainty of real estate sales and payback, and at the same time, the policy is marginal loose again. "

According to data from KE Holdings Inc. Research Institute, the cumulative number of transactions in the new housing market in 66 cities fell 11% from January to August this year compared with the same period last year, and the transaction area dropped 9.9%, narrowing the cumulative decline of 1-2 percentage points compared with July, and the speed of market recovery continued to slow.

Huatai reported that it is expected that after the current tightening of financing, speeding up the start of the market will still be the preferred strategy for housing companies, and the growth rate of short-term real estate investment is expected to remain in a high range. However, under the pattern of "suppressing demand and increasing supply", commercial housing sales may be a gradual weakening trend of "house prices are stable first, sales are then stable", and the growth rate of real estate investment may also slow down. We expect real estate investment to be more resilient than sales in the second half of the year, but it may be difficult to become the main force driving economic repair in the second half of the year.

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