China - Housing 06 (Nov 21 - Dec 26)

[behappyalways]

習近平出手救房市? 史詩及《金融16條》出台救市 TVBS文茜的世界財經周報 20221120 X 富蘭克林‧國民的基金
https://m.youtube.com/watch?v=fH2gKVXisEw

[winston]

CN Reportedly Orders 4 Major State-owned Banks to Provide Offshore Loans to Aid Developers' Debt Repayment

Chinese regulators issued "window guidance" to the four major state-owned banks, demanding them to issue offshore loans by next Saturday (10th), which will be secured against domestic assets, to help property developers repay their overseas debt, Reuters citied sources.

From a balance-sheet perspective, CIFI HOLD GP(00884.HK) , COUNTRY GARDEN (02007.HK), LONGFOR GROUP (00960.HK), MIDEA REAL EST (03990.HK) and SEAZEN (01030.HK) will likely be considered as eligible to receive such financial support, the sources divulged.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

China developers' sales slump by 70pc

Chinese developers Sunac China (1918) and Agile Group Holdings (3383) saw their contracted sales slump by more than 70 percent last month.

Country Garden (2007) saw its contracted sales decrease by 37 percent year-on-year to 26 billion yuan last month,

Source: The Standard

https://www.thestandard.com.hk/section- ... mp-by-70pc

[winston]

Beijing may roll out more property easing

State-owned enterprise promised to make up the difference to buyers if the developer reduces the price of homes in future batches.

They may also declare the nation's years-long campaign to deleverage its property market is completed with the focus for next year on boosting consumer demand.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... rty-easing

[winston]

CN Developers Rally; Central Economic Working Conference Said to Eye Reversing Real Est. Downtrend

HK-listed Chinese property developers rallied collectively this morning.

Shanghai held a symposium on financial support for real estate.

Besides, Central Economic Working Conference will be convened next week, to focus on reversing the downtrend of real estate sector, wire cited people with the knowledge of the matter.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

US$300m offshore loan set for Country Garden

Industrial & Commercial Bank of China (1398) plans to provide US$300 million (HK$2.34 billion) in offshore loans to Country Garden backed by a domestic guarantee,

The news followed a separate announcement by the Bank of China (3988) last Friday that its Hong Kong branch will offer an offshore loan of an unspecified amount to Longfor (0960). The credit will be backed by a guarantee provided by the Bank of China's Chongqing branch.

Big Chinese banks led by ICBC have pledged at least US$179 billion of funding to property developers to ease the turmoil in the real estate market. That came alongside other measures, including allowing some developers to sell onshore debt with guarantees, giving them more access to home presale funds, and ending a ban on onshore equity raising.

Reuters reported earlier this month that China told its four state-owned banks to provide developers offshore loans to pay back foreign debt.

Placements by Country Garden, and Seazen. CIFI also announced a stake sale.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... try-Garden

[winston]

Liu He: To Devise New Measures to Restore Mkt Confidence for Property Mkt

The Chinese government is highly optimistic about the economic outlook in 2023, said Chinese State Council Vice Premier Liu He at the fifth EU-China CEO and Former Senior Officials' Dialogue.

Concerning the downside risks of the real estate market, the government has introduced certain policies and is weighing additional new measures to actively improve the overall liquidity profile of the sector and restore market confidence, Liu added.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... t-news/HK6

[winston]

China’s haphazard ‘three arrows’ could shrink the property sector. Is that more sustainable?

Beijing’s ‘three arrows’ liquidity package is unlikely to benefit all distressed developers equally, leading to consolidation as some fail along the way

Some 60 banks have extended 4 trillion yuan (US$573 billion) to about 100 developers since the measures were rolled out last month, according to China Index Academy

by Pearl Liu

Source: SCMP

https://www.scmp.com/business/article/3 ... ustainable

[winston]

China may ease ‘three red lines’ property rules in big shift

Three red lines metrics
1. Liabilities shouldn’t be more than 70% of assets, excluding advance proceeds from projects sold on contract
2. Net-debt shouldn’t exceed equity
3. Cash must be at least equal to short-term borrowings

The recent measures include:
1. Lower mortgage rates for first-home buyers if newly constructed house prices drop for three consecutive months
2. A nationwide cap on real estate commissions to boost demand
3. Allowing private equity funds to raise money for residential property developments
4. Pledging 200 billion yuan (US$29 billion) in special loans to ensure stalled housing projects are delivered
5. A 16-point plan unveiled in November that ranged from addressing the liquidity crisis to loosening down-payment requirements for homebuyers

Source: Bloomberg

https://www.theedgemarkets.com/node/650734

[behappyalways]

China's Dec home prices fall, more supportive policies likely
https://www.reuters.com/world/china/chi ... 023-01-16/