Today is December 22nd. As the new year is approaching, favorable policies are coming almost every day, and they all come from high-level officials. Among them, the "backdoor listing" is a bit interesting.
1. Backdoor listing
On December 21, the official website of the China Securities Regulatory Commission clearly stated that it would vigorously support the stable development of the real estate market, speed up the implementation of various supporting policies and measures in the capital market , and help the transformation of the real estate development model. The specific requirements of
are also very detailed. One of them is worth noting, which is "backdoor listing". Qualified real estate companies are allowed to "backdoor" listed real estate companies, and listed companies in closely related industries such as real estate and construction are allowed to implement real estate-related restructuring. This is not the first time that the China Securities Regulatory Commission has mentioned the "backdoor" listing of real estate companies. As early as November 28, the China Securities Regulatory Commission stated that it would allow qualified real estate companies to implement restructuring and listing, and the restructuring targets must be listed companies in the real estate industry. This is a specific measure to implement the "three arrows", and restrictions are becoming more and more relaxed, which can further ease the financing pressure of real estate companies.
Since the release of real estate control policies such as the "National Ten Articles" in 2010, the IPO, backdoor listing and refinancing of real estate-related companies have been subject to varying degrees of strict restrictions, and the backdoor listing of real estate companies has been effectively suspended. After a lapse of 12 years, the China Securities Regulatory Commission first restarted the merger, acquisition, reorganization and supporting financing of listed real estate companies on November 28, and then restarted the backdoor listing of real estate companies on December 21, which was a historic watershed in the financing of real estate companies. This backdoor listing not only adds a new channel for equity financing for unlisted real estate companies, but also provides an opportunity for listed real estate companies that cannot afford private placement to reorganize and improve their balance sheets.
2. Property market and stock market
Allowing real estate companies to "backdoor listing" was officially announced by the China Securities Regulatory Commission. The notice not only mentioned the property market, but also the stock market, which can't help but make people think.
The notice mentioned that we will effectively maintain the smooth operation of the capital market, accelerate the reform of the investment side, and guide various medium and long-term funds such as social security funds, insurance funds, enterprise annuities to increase their entry into the market. Why is there such a formulation? The stock market has also continued to weaken recently. Three years after the pandemic, the economy has been under pressure. Except for medical-related industries, almost all industries have generally been in a downturn. The performance of listed companies has also been affected, and the value of stocks has naturally declined. Although prevention and control has been optimized since December and some opportunity stocks have been speculated, the overall stock market is still weak, especially in the past two days, the trading volume has just hit the bottom.
Then the China Securities Regulatory Commission issued a positive announcement, hoping that more funds would enter the stock market to help companies bail out. In terms of real estate, it is large-cap stocks and blue-chip stocks . The amount of funds is large, and it is also medium and long-term funds. This time, the official announcement of allowing real estate companies to "backdoor listing" will not only help real estate companies refinance, but also absorb more funds for the stock market, which can be described as a "win-win" move. For a long time, both the stock market and the property market have been "unable to deal with" because funds will either choose the property market or the stock market. Now that real estate stocks have increased, funds have more choices.
3. Boost the economy
According to statistics from the China Index Research Institute, since the China Securities Regulatory Commission resumed refinancing of listed real estate companies on November 28, 25 listed real estate companies have issued announcements of rights issues or private placement financing.
In the real estate market, most of the financing purposes of real estate companies are to develop real estate projects to "guarantee the delivery of buildings and protect people's livelihood", supplement working capital and repay debts, and some are used for asset restructuring and mergers and acquisitions. The demand side of real estate has been very positive. From the beginning of the year to now, more than 300 cities have introduced nearly a thousand measures to relax the real estate market in one year, not counting the high-level statements made again and again. The reason why the property market continues to slump is due to the supply side, so there are "three arrows". Whether it is to "guarantee the delivery of properties" or to "protect the industry", at least the property market is "stable".
The entry of medium and long-term funds in the stock market, real estate, etc. is conducive to the overall improvement of the market, which in turn drives more than 5,000 individual stocks. This can mean that more than 5,000 listed companies and real enterprises are improving, and ultimately the national economy is good.Not long ago, the high-level top-level design was released, and the strategic plan of " to expand domestic demand " was put on the agenda. Domestic demand is consumption, driving consumption and increasing corporate vitality. Not only real estate, but also all walks of life in the national economy can benefit from it. What we people have to do is to change our mindset. If the economy as a whole gets better, everything will get better, including people's lives.
In summary, allowing real estate companies to "backdoor listing" is a clever move that will benefit not only the property market, but perhaps the entire economy.
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