Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<ul>
<li>Heilongjiang, the most northeastern province in China, revoked strongly worded property supporting policies within a day of official publication</li>
<li>Heilongjiang’s is the first provincial-level support during the current property downturn</li>
<li>Despite the removal of this announcement we still expected policy support that would be timely as it would facilitate the virtuous cycle and healthy development of the local property market</li>
</ul>


Heilongjiang, the most northeastern province in China, revoked strongly worded property supporting policies within a day of official publication
Heilongjiang’s is the first provincial-level support during the current property downturn
Despite the removal of this announcement we still expected policy support that would be timely as it would facilitate the virtuous cycle and healthy development of the local property market


China Province Swiftly Revokes Property-Supporting Measures

<ul>
<li>PBOC and CBIRC  reportedly jointly issued a "Notice on Doing a Good Job in Financial Services for the Mergers and Acquisitions of Risk Disposal Projects of Key Real Estate Enterprises.</li>
<li>The notice focused on encouraging high-quality developers to merge with or acquire high-quality projects of vulnerable counterparts that have encountered operational difficulties.</li>
<li>The Notice is aiming to restore confidence among local homebuyers in the presale system, support the local economy and reduce bad debt</li>
</ul>


PBOC and CBIRC  reportedly jointly issued a "Notice on Doing a Good Job in Financial Services for the Mergers and Acquisitions of Risk Disposal Projects of Key Real Estate Enterprises.
The notice focused on encouraging high-quality developers to merge with or acquire high-quality projects of vulnerable counterparts that have encountered operational difficulties.
The Notice is aiming to restore confidence among local homebuyers in the presale system, support the local economy and reduce bad debt


China Encourage Real Estate Project-Level M&A

<ul>
<li>The Shanghai Housing Administration reportedly held two small, closed-door meetings with some local developers on 9 and 15 December</li>
<li>According to the meeting, the Shanghai government would coordinate with financial institutions in a bid to extend loans for the key projects</li>
<li>This comes as <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property Holdings (813 HK)</a> , a Shanghai-based developer, has seen increasing negative reports concerning its financial conditions recently</li>
</ul>


The Shanghai Housing Administration reportedly held two small, closed-door meetings with some local developers on 9 and 15 December
According to the meeting, the Shanghai government would coordinate with financial institutions in a bid to extend loans for the key projects
This comes as Shimao Property Holdings (813 HK) , a Shanghai-based developer, has seen increasing negative reports concerning its financial conditions recently


Shanghai Encourages Banks to Extend Loans to Critical Property Projects

<ul>
<li>Quality developers are said to be supported by NAFMII to issue M&amp;A bonds with a long maturity to acquire real estate projects from troubled developers</li>
<li>This adds further fuel to the rumour that financing for M&amp;A activity will be outside of the three red lines</li>
<li>The Politburo December meeting provided a positive signal for property policy that is expected to be echoed in the Central Economic Work Conference statement this week</li>
</ul>


Quality developers are said to be supported by NAFMII to issue M&amp;A bonds with a long maturity to acquire real estate projects from troubled developers
This adds further fuel to the rumour that financing for M&amp;A activity will be outside of the three red lines
The Politburo December meeting provided a positive signal for property policy that is expected to be echoed in the Central Economic Work Conference statement this week


China State-Owned Developer Plans to Issue M&A Bonds on Interbank Market

<ul>
<li>The waiting time for mortgage loan issuance has reduced in Beijing, with the quota reportedly expected to increase early next year.</li>
<li>Some 8 cities loosened while 3 cities tightened in November</li>
<li>Measured and locally varied support should translate into improved home sales in certain markets and reduced default risks at most developers.</li>
</ul>


The waiting time for mortgage loan issuance has reduced in Beijing, with the quota reportedly expected to increase early next year.
Some 8 cities loosened while 3 cities tightened in November
Measured and locally varied support should translate into improved home sales in certain markets and reduced default risks at most developers.


Mortgage Issuance Seen Easing in Beijing and Other Tier 1 and Tier 2 Cities

China

China Vanke Co., Ltd. operates real estate development businesses.  The Company provides housing renovation, housing loans, real estate brokerage, and other businesses. China Vanke also operates logistics, material supply, and other businesses.

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China Vanke (000002 CH)

China Province Swiftly Revokes Property-Supporting Measures

Despite the removal of this announcement we still expected policy support that would be timely as it would facilitate the virtuous cycle and...

Li Tang

China Encourage Real Estate Project-Level M&A

The Notice is aiming to restore confidence among local homebuyers in the presale system, support the local economy and reduce bad debt

Li Tang

Shanghai Encourages Banks to Extend Loans to Critical Property Projects

Shanghai said relevant departments would help coordinate with financial institutions in a bid to extend loans for the key projects, in order to...

Li Tang

China State-Owned Developer Plans to Issue M&A Bonds on Interbank Market

The new move adds further fuel to the rumour that financing for M&A activity will be outside of the three red lines,This is a crucial development...

Li Tang

Mortgage Issuance Seen Easing in Beijing and Other Tier 1 and Tier 2 Cities

We see a short-term opportunity to buy high-quality, low leveraged developers in advance of further calibrated policy support

Li Tang

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