On December 21, the China Securities Regulatory Commission held a party committee meeting and stated that it would vigorously support the stable development of the real estate market. Increase efforts and speed up the implementation of various support policies and measures for the capital market to help transform the real estate development model. In this regard, Li Yujia, chief researcher of Guangdong Provincial Housing Policy Research Center, believes that the management tone of real estate has shifted to paying equal attention to preventing risks, ensuring stability, protecting people's livelihood, and promoting domestic demand.
The China Securities Regulatory Commission stated that it will fully implement the plan to improve the balance sheets of high-quality real estate companies, continue to implement special support plans and support tools for private enterprise bond financing, and better promote the cooperation between the central and local governments to increase credit and jointly support private real estate companies to issue bonds . Implement the equity financing policy for real estate companies that has been introduced, allow qualified real estate companies to "backdoor" listed real estate companies, and allow listed companies in closely related industries such as real estate and construction to implement real estate-related restructuring. Accelerate the creation of affordable rental housing REITs sector.
Li Yujia believes that "helps the transformation of real estate development models" means that the capital market opens the floodgates to real estate companies , which is not a rescue, but promotes the transformation of development models on the basis of preventing risks, protecting people's livelihood, and ensuring stability. The "Plan to Improve the Balance Sheets of High-Quality Real Estate Enterprises" also promotes these enterprises to shift to a new model . Especially for real estate enterprises with stable operations, high quality, and persistence in their main business, support will be provided from both the liability and asset sides in the future.
Support on the liability side includes unblocking various financing channels to promote debt repayment, improve corporate credit, and unblock its channels for continuous financing in the capital market. Li Yujia further pointed out that "the central and local governments cooperate in credit enhancement and jointly support the issuance of bonds by private real estate enterprises", which emphasizes the need to increase the cooperation between the central and local governments in credit enhancement and guarantees, which will help multiple parties to bail out, bear possible risks, and reduce the pessimism of funds entering private enterprise financing.
The support on the asset side is mainly to accelerate the virtuous cycle of land acquisition-starting-sales-completion. Li Yujia believes that 's "accelerating the creation of the affordable rental housing REITs sector" can, on the one hand, revitalize existing assets, allowing companies that hold a large number of heavy assets to reduce capital chain risks and strengthen their transformation to a new model of stock operation and revitalization. On the other hand, it can also encourage developers to shift to a new direction of affordable rental housing.
"In the short term, the management tone of real estate has shifted to pay equal attention to preventing risks, ensuring stability, protecting people's livelihood and promoting domestic demand." Li Yujia further said, "The three arrows have been sent out, and the future will depend on the implementation. It is expected that it will not be too far from market investigation, project declaration and reserves, to implementation cases."
[Reporter] Chai Yajuan
[Author] Chai Yajuan
[Source] Southern Newspaper Media Group Southern+ client
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