Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<ul>
<li>Some developers have been informed by banks that M&amp;A loans will not be counted in the "three red lines" if these loans are used for takeovers of insolvent companies' projects</li>
<li>Stronger state and private developers will be given funding support for project-level M&amp;A</li>
<li>The impact of credit policy plus local level policy shifts will be continued</li>
</ul>


Some developers have been informed by banks that M&amp;A loans will not be counted in the "three red lines" if these loans are used for takeovers of insolvent companies' projects
Stronger state and private developers will be given funding support for project-level M&amp;A
The impact of credit policy plus local level policy shifts will be continued


Developers Informed by Banks that M&A Loans Are Excluded from Three Red Lines

<ul>
<li>Wang Menghui, Minister of MOHURD, gave an interview with Xinhua News .</li>
<li>As ministry did not release the report of their post-CEWC meeting, his words in the interview help set the tone for their work plans for next year.</li>
<li>He reiterated that "houses are for living in, not speculation" and "refrain from using real estate as a short-term means for stimulating the economy".</li>
</ul>


Wang Menghui, Minister of MOHURD, gave an interview with Xinhua News .
As ministry did not release the report of their post-CEWC meeting, his words in the interview help set the tone for their work plans for next year.
He reiterated that "houses are for living in, not speculation" and "refrain from using real estate as a short-term means for stimulating the economy".


China Housing Ministry Flags Key Tasks for Next Year

<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

China

Poly Real Estate Group Co., Ltd. mainly develops and sells residential homes. The company is also in the business of leasing and rental of real estates, and property management.

Poly Real Estate Group Co., Ltd (600048 CH)

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Poly Real Estate Group Co., Ltd (600048 CH)

Developers Informed by Banks that M&A Loans Are Excluded from Three Red Lines

We maintain our view that state-backed developers would take the advantage to obtain quality assets and gain market share, of which our recommends

Li Tang

China Housing Ministry Flags Key Tasks for Next Year

We believe prefab and green construction will be supported China's push for affordable rental housing during the 14th Five-Year period

Li Tang

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

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52-week Range

Market Cap (USDm)

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