<b>Focus Research Institute and daily dynamics of the real estate market</b>
Monitoring time: November 16, 2021
Researcher: Ran Zhang
<b>Macro policy</b>
01 <b>Shanghai: During the 14th Five-Year Plan period, more than 470,000 sets of affordable rental housing are planned</b>
On November 23, the Information Office of the Shanghai Municipal Government held a press conference of the shanghai municipal government, at which it pointed out that during the "14th Five-Year Plan" period, it is planned to build more than 470,000 units (rooms) of affordable rental housing. By the end of the "14th Five-Year Plan", the city will accumulate more than 600,000 sets (rooms) of affordable rental housing, of which about 400,000 sets (rooms) will form a supply to alleviate the housing difficulties of new citizens and young people. It is reported that Shanghai plans to build and raise 240,000 sets (rooms) of affordable rental housing in 2021-2022, completing more than half of the total target of the "14th Five-Year Plan".
02 <b>Shenzhen, Guangdong Province: New Regulations for Second-hand Housing Trading Platform Intermediaries need to be authorized to obtain a listing information code when releasing a listing</b>
On November 22, the Shenzhen Real Estate Intermediaries Association issued the Notice on Further Regulating the Publication of Housing Advertisements. Further notice requires that real estate intermediaries and intermediaries obtain a valid housing information code after signing the "Shenzhen Second-hand Housing Entrusted Sale Contract" with the client online through the Shenzhen Real Estate Information System before releasing the corresponding housing information. When the listing information is released, it must indicate and publicize the valid listing information code, and include the necessary information such as the listing number, project name, construction area, administrative area, government reference unit price of the community, reference total price of the house source, and entrusted real estate brokerage agency.
03 <b>Nanjing, Jiangsu Province: The third batch of 15 plots of centralized land supply was terminated for reasons</b>
On November 22, the Nanjing Municipal Bureau of Planning and Natural Resources announced that the 15 parcels of land that were scheduled to be sold on Thursday (November 25) were terminated for any reason. There are 46 cases of three batches of residential plots in Nanjing, and after the termination of the 15 cases, there are still 31 cases left, with a total transfer area of 1.2557 million square meters, a total construction area of 2.8079 million square meters, and a total starting price of 29.78 billion yuan. It is reported that most of the 15 parcels are located in Jiangning Binjiang New Town, Chunhua, Liuhe Longpao, Lishui Tuotang and other urban marginal plates, which are located in remote locations, weak plate energy levels, and it is difficult to provide sufficient deindustrialization guarantees. The two plots of land in Qinhuai and Qixia have higher requirements for construction and industrial introduction, and the bidding threshold has been greatly increased, which has also led to a decrease in attention.
04 <b>Changsha City, Hunan Province: The third batch of centralized land supply has launched a total of 26 land plots with a total starting price of 15.35 billion yuan</b>
On November 22, the Changsha Land and Resources Exchange website announced the third batch of land information for centralized land supply in Changsha, and a total of 26 plots were launched this time, which will be listed at 9:00 a.m. on December 22. The total area of the third batch of land auctioned and listed land plots is about 1.65 million square meters, the total construction area is about 4.14 million square meters, and the total starting price is about 15.35 billion yuan. A total of 14 plots were listed in Wangcheng District, 4 plots in Kaifu District, 3 plots each in Yuhua District and Yuelu District, and 1 plot each in Tianxin District and Furong District. The listing is still divided into two forms: double limited land and limited land price competition self-sustaining rental housing, of which 14 plots in Wangcheng District are listed and sold in the form of double limited land. Among the 26 plots of land in this round of centralized land supply, a total of 11 cases of self-sustaining leased plots were bid, accounting for about 42%, 18 pure residential plots, accounting for 69%, and 8 cases of commercial and residential land; in terms of bidding rules, the third batch of centralized land supply has not changed compared with before, and the qualifications of bidders, bidding deposits and sources of funds for land purchase are also restricted; 26 plots have limited the highest bidding for land, and the maximum premium rate is not more than 15%.
05 <b>Sanya City, Hainan Province: Strengthen the supervision of transactions in the second-hand housing market The listed price exceeds the reference price and must not apply for online signatures</b>
On November 22, the Sanya Municipal Bureau of Housing and Urban-Rural Development issued the Notice on Further Strengthening the Supervision of Transactions in the Second-hand Housing Market, which clearly stated that it will further increase the supervision of transactions in the second-hand housing market. The "Notice" proposes to improve the price reference mechanism for second-hand residential transactions in Sanya. Fully considering the current market fluctuations, combined with the transaction price of the second-hand housing network in the past period, as well as other price factors, it will guide the municipal housing trading department and relevant units to improve the mechanism for releasing the transaction price of the second-hand residential building in the early stage. Housing trading departments, financial institutions, brokerage institutions, etc., in the process of business handling, should take the published reference price as the basis, beyond the reference price range, must not go through the transaction online signature formalities. Establish a second-hand housing listing review mechanism. Real estate brokerage agencies and online platforms must first be verified by the real estate trading center, and the "one room, one price, one room and one code" management system must be fully implemented. Among them, residential properties also need to be reviewed for price, and listings that have not obtained a two-dimensional code are not allowed to be listed.
<b>Financing dynamics</b>
01 <b>Poly Development: It is proposed to issue corporate bonds to raise no more than 9.8 billion yuan to repay interest-bearing debts</b>
On November 22, Poly Development issued an announcement on the preliminary issuance of corporate bonds. According to the announcement, the corporate bonds issued this time will be issued by public offering, the scale of the corporate bonds issued will not exceed 9.8 billion yuan (including 9.8 billion yuan), and the coupon rate of the corporate bonds will be determined by the company and the bookrunner according to the results of the offline inquiry bookkeeping within the preset interest rate range. The coupon rate of the bond is calculated annually using simple interest, excluding compound interest. The announcement shows that the maturity of the general corporate bonds issued this time is not more than 10 years (including 10 years), which can be a single term variety or a mixed variety of multiple terms. The proceeds of the corporate bonds issued in this offering are intended to be used to repay interest-bearing debts, supplement working capital, project construction and other purposes permitted by applicable laws and regulations.
02 <b>China Overseas: Plans to issue corporate bonds of not more than 2.9 billion yuan</b>
On November 22, China Shipping issued the announcement of the issuance of corporate bonds (phase IV) for professional investors in 2021, the first type of bonds in this period is referred to as "21 China Sea 07", and the second variety is referred to as "21 China Sea 08", with a total issuance scale of no more than 2.9 billion yuan (including 2.9 billion yuan), each face value is 100 yuan, the number of issues is not more than 29 million, and the issue price is 100 yuan per piece. The bonds in this period are divided into two varieties, the term of variety 1 is 3 years, and the term of variety 2 is 5 years; the inquiry range of variety 1 is 2.70%-3.50%, and the inquiry range of variety 2 is 3.00%-3.80%.
<b>Business dynamics</b>
01 <b>Tianshan Development: 600 million yuan to sell Shijiazhuang land loss of 142 million yuan</b>
On November 22, Tianshan Development announced the main transaction related to the sale of land. Tianshan Real Estate (an indirect wholly-owned subsidiary of Tianshan Development) entered into the agreement with the Shijiazhuang Municipal Planning Bureau, pursuant to which Tianshan Real Estate had agreed to transfer and the Shijiazhuang Municipal Planning Bureau had agreed to repurchase the land for a consideration of approximately RMB600 million. The land is located in Shijiazhuang and covers a total area of about 63,700 square meters. As at the date of this announcement, the land is vacant and the foundation works carried out are limited and are not subject to any lease. As at 31 December 2020, the audited accounts of Tianshan Development Group (which took into account, including, including, the cost of the land and the cost of the limited foundation works carried out) accounted for approximately RMB742.1 million of the net book value of the land. As a result, the disposal will result in a loss of approximately RMB142 million (excl. tax) for Tianshan Development Group.
02 <b>Jingrui Holdings: S&P will lower its outlook to "negative" Leverage will remain high</b>
On November 22, S&P downgraded Jingrui Holdings' outlook from "stable" to "negative", and confirmed that Jingrui Holdings' issuer credit rating was "B" and Jingrui Holdings' long-term issuance of outstanding senior DOLLAR notes was rated "B-". The negative outlook reflects S&P's view that jingrui holdings will remain high in the face of operational headwinds in the next one to two years.
03 <b>Xiang Life Service: Through the Listing Hearing of the Hong Kong Stock Exchange, the area under management is 21.2 million square meters</b>
Documents from the Hong Kong Stock Exchange on 22 November show that Xiang Life Services Group Limited passed the listing hearing. As of May 31, 2021, The GFA under management of Xiang Life Services was 21.2 million square meters, and the contracted construction area was 39.2 million square meters. Xiang Life Services provides diversified services through three business lines, namely property management services, property developer value-added services and community value-added services. The portfolio of properties under management includes residential and non-residential properties, mainly shopping centres and office buildings.
04 <b>Greentown Service: Took over 100% equity of Hainan Colorful Property</b>
On November 23, Hainan Zhonghaowei Real Estate Co., Ltd. withdrew 100% of the equity of Hainan Colorful Property Service Co., Ltd., and after the change of equity, Colorful Property was 100% owned by Greentown Service. Zhonghaowei was established in July 1991 with a registered capital of 90 million yuan, the legal representative is Lu Ming, and the business scope includes real estate development and operation; sales of building materials; decorative materials, etc. At present, the majority shareholder of the company is Huiyu Holding Group Co., Ltd. holding 99%, while the majority shareholder of Huiyu Holding Group Co., Ltd. is Lu Ming, who holds 51.15%.
05 <b>Vanke Overseas: Sun Jia succeeded Zhang Xu as chairman and executive director</b>
On November 22, the Board of Directors of Vanke Overseas Investment Holdings Co., Ltd. announced that Zhang Xu had resigned as chairman and executive director of the company and would no longer serve as a member of the company's nomination committee. The Board announces that sun jia has been appointed as chairman, executive director and member of the nomination committee with effect from 23 November 2021. On the date of the announcement, Sun Jia has entered into a letter of appointment with Vanke Overseas for a period of three years until the first general meeting of shareholders of the Company after his appointment, and is subject to resignation and re-election in accordance with the Articles of Association of the Company. Either party may terminate the appointment by giving not less than two months' notice.
06 <b>Shimao Group: Moody's added the company's family rating to the downgrade watch list</b>
On November 22, Moody's added Shimao Group Holdings Limited's "Ba1" Corporate Family Rating (CFR) to the Downgrade Watch List. The outlook was "stable" before being included in the downgrade watch list. Celine Yang, Vice President/Senior Analyst at Moody's, said, "The inclusion of the downgrade observation reflects our expectation that Contract Sales of Shimao Group will decline over the next 6-12 months. It also reflects the uncertainty remains about the company's ability to secure new financing at a reasonable cost to address the maturity of its large domestic and foreign debt in the face of tight financing and weak market sentiment. Moody's expects Shimao Group to have sufficient internal cash to repay its short-term maturing debt, but debt servicing will reduce its liquidity buffer and available funds for operating operations over the same period.
07 <b>Kaisa: Announced that Jinheng Wealth Redemption Plan will be optimized and advanced according to the fundraising situation</b>
On November 22, Kaisa released the announcement of the "Jinheng Wealth Product Redemption Plan". The plan is determined as follows: First, according to the chronological order of maturity of Jinheng Wealth products, the principal and interest are paid successively in installments; second, for the principal due to investors, 10% is paid in the month of maturity, and 10% is paid every 3 months thereafter; for the interest of investors, the principal does not pay interest before maturity, together with the principal, the principal is paid 10% in the month when the principal is due, and 10% every 3 months thereafter; third, for the principal that is deferred, it is 4.35% according to the benchmark interest rate of the one-year commercial loan. Deferred interest is paid to investors. Deferred interest is accrued from the maturity date of Jinheng Wealth Product until the final principal payment is completed. Deferred interest payment is 50% in the third month after the redemption of the last principal and interest due, and the payment is completed in the 6th month; fourth, the principal, maturity interest and deferred interest of Jinheng Wealth products are paid on the 20th of each month. Whether the principal, interest due and deferred interest due on the 1st of the month or the 31st of the month are paid on the 20th of the month. At the same time, Kaisa mentioned in the announcement that the products that have matured in October and November 2021 have been redeemed on November 22 according to the current redemption plan.
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