Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<ul>
<li>Relevant government departments have reportedly issued opinions on the supervision of presales funds</li>
<li>Property lending dropped YoY in January despite adequate liquidity in last month</li>
<li>We think policy support is still inadequate and should step up in the real estate sector on the demand-side</li>
</ul>


Relevant government departments have reportedly issued opinions on the supervision of presales funds
Property lending dropped YoY in January despite adequate liquidity in last month
We think policy support is still inadequate and should step up in the real estate sector on the demand-side


China Plan Easing Rules on Presales Funds Held in Escrow

<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

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)

China Plan Easing Rules on Presales Funds Held in Escrow

Recovery of the real estate sector is still reliant on the demand side, which should take longer to recover as people wait for policy support and...

Li Tang

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

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)