According to a report on the website of the Central Health Commission for Discipline Inspection and Supervision on June 27, recently, the Commission for Discipline Inspection of Haiyuan County in Ningxia notified the investigation of a case of Communist Party members who concealed their identities and participated in the Hajj.
According to Observer.com, Matingke, a Communist Party member in Mabao Village, Qiying Township, concealed his Communist Party membership and went to Mecca to participate in Hajj activities from August 30 to October 11, 2015.
The report pointed out that Matinko, as a member of the Communist Party, violated the party's political discipline and rules, causing bad influence.On May 18, 2018, he was expelled from the Party by the County Commission for Discipline Inspection. The scale of overseas bond issuance of Chinese real estate companies increased by 63% year-on-year, and financing costs continued to rise
The relevant person in charge of China's National Development and Reform Commission recently pointed out that it will regulate the investment of real estate companies' overseas bond issuance funds, restrict real estate companies' foreign debt funds from investing in domestic and overseas real estate projects, supplement operating funds, etc., and require companies to submit commitments on the use of funds.Industry insiders pointed out that in the past two years, the financing scale of real estate companies has continued to hit new highs, and high debt has attracted the attention of all parties.In this context, with the increasing difficulty of financing at home and abroad and the contraction of debt growth, real estate companies have entered a deep water zone to deleverage.
According to the Economic Information Daily, according to WIND statistics, as of June 28, Chinese real estate companies have issued 78 overseas bonds this year, with an issuance scale of 211.1 billion yuan (RMB, the same below, 43.557 billion Singapore dollars), compared with 2017.Compared with the 129.3 billion yuan in the same period, the increase reached 63%.
Zhang Dawei, chief analyst of Centaline Real Estate, said that since the beginning of this year, although the sales performance of real estate companies has continued to improve, as the regulators strictly control bank credit and trust funds entering the real estate market in violation of regulations, the pressure on real estate companies' funds continues to increase.Against the background of large-scale competition, real estate companies have more urgent needs for funds, and overseas bond issuance has become the main choice for short-term financing channels for real estate companies.
Recently, Greenland Hong Kong announced that it signed a subscription agreement with Credit Suisse, HSBC and other institutions to issue bonds with a principal amount of US$200 million.In fact, in May of this year alone, Vanke, Gemdale, Sunac, Oceanwide, Huayuan, Jinke, CIFI, Wanda, Sunshine City, R&F, Times Properties and many other real estate companies all filed with the National Development and Reform Commission for overseas bond issuance.
Zhu Lin, chief industrial and commercial analyst at the rating agency Oriental Jincheng, said that judging from the interest rates of newly issued bonds this year, the average interest rate of 78 bonds excluding convertible bonds is about 7.1%.This means that while the issuance volume continues to increase, the cost of capital for real estate companies is also rising.
Zhu Lin believes that the international situation is complex and changeable, and restricting overseas financing of real estate is conducive to preventing repayment risks.In fact, before the overseas financing of real estate companies was restricted, domestic financing had been significantly tightened.According to statistics from the Tongce Consulting Research Institute, in May this year, the 40 typical listed real estate companies under key monitoring completed a financing amount of 45.117 billion yuan, a decrease of 41.34% from the previous month’s 76.912 billion yuan, and the total financing amount became a new low in the past year.
On June 11, the China Securities Regulatory Commission disclosed documents showing that the non-public offering financing plan submitted by Zhonghong Holdings and Tahoe Group for approval has been suspended.Since 2018, more than a dozen real estate companies, including Shanghai Powerlong, Longfor Real Estate, R&F Real Estate, Hopson Development, and Fantasia, have suspended bond issuance.
Zhu Lin believes that under the background of further intensified restrictions on real estate financing, revitalizing book assets and increasing financing of structured products is the general trend.He suggested that real estate companies need to speed up the pace of destocking, speed up the return of funds from sales, improve cash flow, and restore some internal financing capabilities.
