2023-11-21 06:56:41
A proud day!
On November 21, driven by the successful debt restructuring, Hong Kong stock Sunac China once rose by more than 25% during the session, and many mainland property stocks followed suit. In the A-share real estate development sector, Shenzhen Zhenye A, Dalong Real Estate, Sanxiang Impression and other stocks rose by the limit. Real estate bonds rose, and real estate bonds also rose simultaneously. “21 Longfor 02” once rose by nearly 19%, “20 Longfor 04” rose by nearly 15%, and “16 Gemdale 02” rose by more than 12%.
Industry insiders said in an interview with a reporter from Brokerage China that Sunac’s debt restructuring work is an industry benchmark, providing a sample for other real estate companies to resolve debt crises and helping to boost market confidence. Recently, regulatory agencies have repeatedly emphasized supporting the reasonable financing needs of real estate companies of different ownerships, and the solution to the debt crisis in the real estate industry seems to be dawning. In addition, multiple media reported that regulatory agencies are drafting a whitelist of real estate developers to further improve financing support for the real estate industry.
In addition, Beijing Stock Exchange stocks became the biggest highlight of the market in the morning. The BSE 50 Index surged in the morning and closed up over 9% at noon, a rare intraday gain since the index was released. Recently, the index has been on a strong trend. In less than a month, the maximum increase from the low has exceeded 30%. In terms of individual stocks on the Beijing Stock Exchange, as of midday, there were 9 stocks with a daily limit of “30cm”.
Real estate stocks and bonds soar
Sunac China released yesterday eveningannouncementIt said that all conditions for the restructuring of the company’s overseas debts have been met and will officially take effect on that day.announcementIt shows that according to the conditions of the reorganization, creditors’ existing debt of approximately US$10 billion will be replaced with six series of new notes with a total consideration of US$5.7 billion, US$2.75 billion of mandatory convertible bonds, US$1 billion of convertible bonds and 14.7% The total shares of Sunac Services, the consideration for this part of Sunac Services shares is US$775 million.
According to statistics, with the completion of the restructuring of all domestic and overseas public market debts, Sunac has resolved debt risks of approximately RMB 90 billion as a whole. Sunac stated that the company regards “guaranteing delivery” as the top priority of the company’s operations, and has also received strong support from the government and financial institutions in the process. The first and second batches of the guaranteed delivery building bailout fund have landed about 190,000 yuan. billion, which has also become an important foundation for the smooth resumption of work and production and stable delivery.
Stimulated by the good news of the successful restructuring, Sunac Hong Kong stocks surged more than 20% in intraday trading this morning. Many domestic real estate stocks followed suit. Sealand Development, China Evergrande, Powerlong Real Estate, and R&F Properties rose by more than 10%. Longfor Group and Country Garden rose. Over 9%. In the A-share real estate development sector, Shenzhen Zhenye A, Dalong Real Estate, Sanxiang Impression and other stocks rose by the limit.
Real estate bonds expanded their gains, with “21 Longfor 02” rising by nearly 19%, “20 Longfor 04” rising by nearly 15%, and “16 Gemdale 02” rising by more than 12%.
“This restructuring shows that real estate companies have made breakthroughs in debt disposal and risk resolution, which is also worthy of attention. Debt restructuring is an important measure to resolve risks in the real estate field. This type of resolution work is very important because it affects everyone’s understanding of real estate. Judgment that the company can ‘survive’. The more good news like debt restructuring, the more it shows that the real estate market and companies are stable.” Yan Yuejin, research director of E-House Research Institute, told a reporter from Brokerage China.
Yan Yuejin believes that Sunac’s debt resolution work instructions are very inspiring. Currently, there are many problems in the debt resolution work of real estate companies, especially when the recovery of the real estate market is weaker than expected. All types of real estate companies can learn from the practices of similar benchmark real estate companies and work hard in debt decomposition, multi-channel debt, and actively gain time to truly promote the smooth progress of debt disposal work.
Zhang Hongwei, the founder of Jingjian Consulting, also said in an interview with a reporter from Brokerage China that Sunac is the first company in the industry to restructure debt. Its debt restructuring model and method can become an industry template, and it has great influence on the industry as a whole to learn how to restructure debt. positive effects.
Policies continue to support reasonable real estate financing
Real estate companies also continue to receive favorable policies on the financing side. Yesterday, multiple media reported that regulatory agencies are drafting a whitelist of Chinese real estate developers, and that 50 state-owned and private real estate companies may be included in it. Listed companies will receive various support including credit, debt and equity financing.
Recently, supervision has frequently released signals to support the reasonable financing needs of real estate companies. On November 17, the central bank, the State Administration of Financial Supervision, and the China Securities Regulatory Commission held a symposium on financial institutions to study recent key tasks such as real estate finance, credit extension, and financing platform debt risk resolution. The meeting emphasized that reasonable financing needs of real estate companies of different ownerships should be met equally, and real estate companies operating normally should not hesitate to lend, withdraw loans, or cut off loans. Continue to make good use of the “second arrow” to support private real estate companies in bond issuance and financing. Support real estate companies in reasonable equity financing through the capital market.
The joint symposium of the three departments called for increasing financial support from financial institutions in terms of credit, debt and equity financing related to enterprises, but did not put forward rigid requirements. Principals from 18 national commercial banks, 5 national financial asset management companies, and 4 large securities companies participated in the discussion.
“The current real estate support policy has shifted from focusing on the demand side to a two-pronged approach on both supply and demand, and has changed from ‘protecting the project’ to ‘protecting the subject’. Real estate companies with high-quality land reserves, sound finances, resource endowments, and continuous improvement of product capabilities are expected to survive the cycle. Take advantage of the land auction window period to actively adjust positions, and be the first to benefit from the recovery of industry sales in the future; at the same time, some local real estate companies and construction agencies are expected to benefit from the incremental opportunities brought by the continued advancement of urban village renovation.” Soochow Securities said in a recent reportresearch reportpointed out in.
Soochow Securities believes that China’s real estate industry has entered a new stage of development, transforming from high-speed development to high-quality development, from “the strong will always be strong” to “the stable will always be strong”, and from solving basic housing needs to satisfying the people’s needs. The transformation of longing for better living quality. In the past two years, the real estate industry has experienced significant fluctuations, and the industry structure has been constantly changing. The differentiation between real estate companies in terms of sales, land acquisition, and financing has become increasingly obvious, especially between central state-owned enterprises and private enterprises. This trend of differentiation is difficult to change in the short term. A new era for the industry has arrived. Real estate companies that can survive this period of industry contraction will usher in a new industry pattern with a significantly optimized competitive environment.
Chen Gang, an analyst at Dongxing Securities, pointed out: “The three departments jointly held a symposium on financial institutions and expressed their stance on providing reasonable financing support and financing supervision for real estate companies, and meeting the reasonable financing needs of real estate companies with different ownerships equally. Financial institutions have strict requirements for private and mixed ownership real estate companies. Financing support is expected to increase. Current sales have not shown a significant improvement, and demand-side policies still need to continue to be implemented.”
(Source of article: Brokerage China)
Source of article: Brokerage China
Author of the article: Geng Yin
Original title: Real estate stocks and bonds soar! Sunac China surged 25% intraday, with many stocks hitting their daily limit! Multiple good news are coming, can we expect the market outlook?
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