The Chinese real estate timeline

December 2022

Shanghai Pudong Development Bank finance 7 real estate companies for €10M

China Construction Engineering Group, Zhonghua Enterprise, Lujiazui Group, Yongye Group, Shui On Land, Hong Kong Land and Seazen Holdings are concerned [Construction Engineering Group、Chinese enterprises、Lujiazui Group、Yongye Group、Shui On Land、Hongkong Land, Seazen Holdings].

12 december 2022

Many cities make it easier to buy real estate

Xiamen (6 december), Wuhan (8 december), Foshan (9 december) we successively introduce relaxation of regulations relating to the purchase of real estate. These measures respond to dissatisfaction shared by all tier cities 2 and lower than new home sales.

Vlinker [micro territory] borrow 2,7 milliards d'euros à la Bank of China

Zhou Junqiang, Company CEO : « Weilingdi will adhere to the company's mission to "enable young people to live better ». In other words, pursue the programmatic line of the government in exchange for an intentional line of credit from the Bank of China.

Weilingdi is one of Shanghai's leading real estate developers.

08 december 2022

The 16 financial measures: 409 millions d'euros distribués depuis novembre

80 real estate companies took advantage from a total of 409 millions of euros opened by banks in the form of credit, since november [16Financial]. The banks in question include : them banks urban commercial and rural commercial banks of Henan, du Guangxi, de Guangzhou, de Foshan, de Dongguan, de Huizhou, de Zhuhai

05 december 2022

JACK : list of top chinese real estate companies

The CRIC (Kerry) organized a conference to determine the TOP100 of the best real estate companies, based on the quality of the products delivered. Greentown China [Greentown China] is at the top of the list, while Longfor Group [Longfor Group] et Vanke Real Estate [Vanke Real Estate] ranked second and third respectively. According to CRIC, Chinese consumers are particularly attentive to delivery times, which is understandable after the multiple delays that have followed since 2020.

02 december 2022

Hengchi Automobile, subsidiary of China Evergrande Group : 25% employees suspended

Hengchi Automobile [Hengchi], a subsidiary of China Evergrande Group, reported large-scale work suspension and wage arrears. Hengchi Automobile announced that 25 % of its employees have been suspended, without pay, for one to three months.

Les étrangers réinvestissent dans l'immobilier chinois: logistics hubs and industrial parks

The real estate investment giant ProLogis has announced that it has invested 2,7 billion euros in new infrastructure projects (logistics real estate and industrial parks). CapitaLand, Blackstone Group, Sequoia China and Hillhouse also deployed logistics and real estate activities this year.

Insiders: real estate investment trusts (FPI) on the secondary market now represents a “way out” for investors, where the traditional real estate sector continues to fall in China.

November 2022

Land sales : -25% on 10 months for the provinces

Land sales by local governments have fallen from 25% on the 10 last months, according to official statistics. real estate represents 1/3 of provincial tax revenue in China. The contraction of domestic consumption and the difficulties encountered by promoters are putting public finances in difficulty.

30 November 2022

Evergrande Wealth divides wages by 4

China Evergrande Wealth announced that the current monthly payment of 8 000 yuan per person will be adjusted to 2 000 yuan. Sources believe the adjustment to the payment plan means Evergrande Wealth faces great difficulty in disposing of its assets supposed to meet the company's abysmal debt.

China Securities Regulatory Commission : 5 measures to optimize promoter financing

La China Securities Regulatory Commission published five measures to adjust and optimize the equity financing of real estate companies:

  • Resume mergers and acquisitions and support the financing of listed real estate companies
  • Resume refinancing of listed real estate companies and listed real estate companies
  • Adjust and improve the listing policies of real estate companies in foreign markets
  • Favor REITs in the revitalization of the stock of assets of real estate companies
  • Play the role of a private equity investment fund well.

Insiders: these measures increase the financing channels available to real estate companies. The end goal is to allow eligible real estate companies to restructure and become public.

29 November 2022

China Evergrande's liquidation petition postponed

The High Court of Hong Kong has again postponed the hearing of a motion for liquidation of China Evergrande, giving more time to Evergrande's debt restructuring plan, long awaited. The hearing is scheduled for 20 mars 2023. The request is made by Top Shine Global (Top Shine Global) in June 2022.

28 November 2022

China International Capital Corp : la situation immobilière s'améliorera en 2023

According to a CICC report [China International Financial Group, one of China's leading investment banks], the selling area and value of commercial housing nationwide could increase by 2 % et 5 % in between 2022 et 2023.

26 November 2022

Bank of China lends 13,4 milliards d'euros au promoteur Vanke

This credit is intended for the construction of new real estate and to allow mergers and acquisitions. Reported by China Securities Journal.

24 November 2022

ICBC signs for 87,3 milliards d'euros de prêt pour 12 real estate agents

12 real estate companies including Vanke Group, Gemdale Group, Greentown China, Longfor Group, Country Garden Group, Midea Real Estate, Jinhui Group have signed pour 87,3 billion euros borrowed from ICBC to finance building construction.

16 mesures de soutien financier à l'immobilier

The People's Bank of China [The People's Bank] and China Banking and Insurance Regulatory Commission [Banking and Insurance Regulatory Commission] publish: “Opinion on doing a good job in the current financial support for the stable and healthy development of the real estate market” [Notice on doing a good job in the current financial support for the stable and healthy development of the real estate market]. 16 measures are contained, among:

  1. Banks should prioritize lending to companies with sound governance.
  2. Anticipating the financial difficulties of promoters, push them to communicate in advance with creditors to avoid collapses.
  3. Support the projects of “guaranteed buildings” [Baojiao Building], i.e. projects that we are sure will be built and delivered on time.
  4. Banking institutions must, in each region, intelligently determine the required down payment rate for real estate buyers, to prevent it from being too high.

National Commercial Bank Credit Symposium : we must support the real estate sector

The People's Bank of China [peoplebank] and China Banking and Insurance Regulatory Commission [Federation of China Banking and Insurance Regulatory Commission] organized a conference around the credit granted by commercial banks. The findings are : support the real estate industry, maintain consistent credit for promoters [Loans for construction companies] as for individuals [Support the reasonable needs of individual housing loans].

21 November 2022

Wuhan city confiscates 11 land in Evergrande without financial compensation

The municipality invoked its right to “cancel the right to use unused state-owned construction land” to resume 11 parcels of land in Evergrande where construction is interrupted, without financially compensating the group (estimated value: at least 800 millions of euros).

Montant d'acompte pour l'achat de nouvelles maison historiquement bas en Chine

Since the beginning of this year, at least 115 cities reduced to 20 % advance payment to the bank for the purchase of a first property. Among them: Chengdu dans le Sichuan, Shijiazhuang dans le Hebei, Xi'an dans Shaanxi, Taiyuan au Shanxi, Changchun au Jilin et Fujian.

The interest rate on real estate loans to individuals has also reached a historic low..

The People's Bank of China releases 27.1 milliards d'euros pour l'immobilier

Yi Gang (Yi Gang), Governor of the People's Bank of China, just announced release 27.1 Billions of Euro's to support the construction and delivery of pre-sold homes, and thus guarantee the right of citizens harmed by real estate developers to stop. The People's Bank of China, and commercial banks in general will have to offer means of financing to private companies, by sharing the financial risks, in order to restart the machine of the sector.

National Bureau of Statistics : real estate trend down

January to October, the area of ​​housing units completed by real estate development companies decreased by 18,7 %, according to the Office. Regions must adhere to the principle of purchase for housing, not speculation, selon son porte-parole Fu Linghui – Fu Linghui

20 November 2022

Hangzhou, Chengdu et Xi'An assouplissent les restrictions à l'achat de biens immobiliers

The three second-tier cities have in turn published opinions allowing non-native residents of the city (no Hukou) to buy second-hand real estate, in order to revitalize a sector in turmoil.

19 November 2022

Chinese promoters manage to finance themselves by issuing shares

Agile Group [Agile Group] (97 millions of euros) et Country Garden [country garden] (unknown amount) plan to raise funds by allocating shares, under the “second arrow” of the Chinese law of 2018 on the financing of real estate developers. Likewise, Longfor Group [Longfor Real Estate] et Seazen Holdings [Seazen Holdings] managed to finance themselves recently beyond 1,4 Billions of Euro's.

Country Garden withdraws credit rating from Fitch

There have been 25 events revocation of the rating of real estate companies since June 2022 : Jinhui, R&F, Xincheng, Evergrande, CIFI, etc.

08 November 2022