Every reporter: Chen Ronghao Every editor: Wei Wenyi
| Monday, December 18, 2023 |
Country Garden (HK02007, share price HK$0.820, market capitalization HK$22.951 billion)
NO.1 Central Economic Work Conference: Actively and steadily resolve real estate risks and accelerate the construction of a new model of real estate development
The Central Economic Work Conference was held in Beijing from December 11 to 12. The meeting required that next year we should focus on promoting high-quality development, highlight the key points, grasp the key, and do a solid job in economic work. Continue to effectively prevent and resolve risks in key areas. It is necessary to coordinate and resolve risks such as real estate, local debts, and small and medium-sized financial institutions, severely crack down on illegal financial activities, and resolutely adhere to the bottom line of preventing systemic risks. Actively and prudently resolve real estate risks, meet the reasonable financing needs of real estate enterprises with different ownership systems without discrimination, and promote the steady and healthy development of the real estate market. Accelerate the construction of affordable housing, the construction of public infrastructure for both ordinary and emergency purposes, and the transformation of urban villages. Improve relevant basic systems and accelerate the construction of a new model of real estate development. To coordinate the resolution of local debt risks and stable development, major economic provinces should truly take the lead and make greater contributions to stabilizing the national economy.
Comments: This reflects the central government's attention to and regulation of the real estate market, not only to prevent risks, but also to meet the financing needs of different entities, and at the same time accelerate the promotion of affordable housing and urban renewal projects, improve relevant systems, and build a new model of real estate development.
NO.2 Beijing and Shanghai issued a new policy on the property market on the same day: reduce the down payment ratio of the first and second houses, and optimize the identification standards for ordinary housing
On December 14, Beijing and Shanghai successively issued new real estate policies. Beijing has made it clear that the minimum down payment ratio for personal housing loans for the first house (including commercial personal housing loans and housing provident fund personal housing loans) will be uniformly lowered to 30 percent, and the minimum down payment ratio for personal housing loans for two houses will be reduced to 50 percent in the six urban districts (Dongcheng, Xicheng, Chaoyang, Haidian, Fengtai and Shijingshan districts) and 40 percent in the six non-urban districts, and the housing loan term will be restored from the current maximum of 25 years to 30 years. In Shanghai, the differentiated housing credit policy has been optimized, and the lower limit of the interest rate of commercial personal housing loans for the first housing has been adjusted to not be lower than the market prime interest rate of the corresponding term loan minus 10 basis points, and the minimum down payment ratio has been adjusted to not less than 30%, and the lower limit of the interest rate of commercial personal housing loans for the second housing has been adjusted to not be lower than the market prime interest rate of the corresponding term loan plus 30 basis points, and the minimum down payment ratio has been adjusted to not less than 50%. At the same time, both Beijing and Shanghai have adjusted the criteria for identifying ordinary housing.
Comments: This shows that the two first-tier cities of Beijing and Shanghai have coordinated and learned from each other in the real estate market, and have reduced the cost and threshold of home buyers by optimizing the identification standards for ordinary housing, reducing the down payment ratio and the lower limit of mortgage interest rates.
NO.3 Zhuhai Wanda Commercial Management has been reinvested by PAG Investment Group, and there will be no VAM agreement set up
On December 12, according to the official website of Wanda Group, PAG and Dalian Wanda Commercial Management Group jointly announced the signing of a new investment agreement. Under the terms of the new agreement, PAG will work with other investors to reinvest in Zhuhai Wanda Commercial Management after the redemption period expires. In August 2021, the existing investors invested approximately RMB38 billion in Zhuhai Wanda Commercial Management, of which PAG invested approximately US$2.8 billion (approximately RMB18 billion), and the existing investors had the right of redemption at maturity in the original investment arrangement. According to the new agreement, Dalian Wanda Commercial Management Group holds 40% of Zhuhai Wanda Commercial Management, the single largest shareholder, and several existing and new investor shareholders such as PAG Investment Group participate in the investment, holding a total of 60% of the shares. As for the listing issue, there will no longer be a VAM agreement for new investments.
Comments: This reflects the transformation and development of Wanda Commercial Management Group in the real estate industry, through cooperation with PAG Investment Group and other investors, it has resolved the VAM crisis, realized the optimization of the equity structure, maintained the stability of the management team, and provided strong support for the company's long-term development.
NO.4 In November, housing prices in 70 large and medium-sized cities continued to decline month-on-month, rising and falling year-on-year
On December 15, the National Bureau of Statistics released the "Changes in the Sales Prices of Commercial Housing in 70 Large and Medium-sized Cities in November", which showed that in November, the transaction scale of commercial housing in 70 large and medium-sized cities increased, and the sales prices continued to decline month-on-month, rising and falling year-on-year. On a month-on-month basis, in November, the sales prices of newly built commercial residential buildings in first-tier cities fell by 0.3% month-on-month, the same rate as the previous month, the sales prices of newly built commercial residential buildings in second-tier cities decreased by 0.3% month-on-month, an increase of 0.1 percentage points from the previous month, and the sales prices of newly built commercial residential buildings in third-tier cities decreased by 0.4% month-on-month, a decrease of 0.1 percentage points from the previous month.
Comments: This reflects the changes in the sales prices of commercial housing in 70 large and medium-sized cities across the country in November, and is analyzed from two dimensions: month-on-month and year-on-year, showing the supply-demand relationship and price trend of the real estate market.
NO.5 Country Garden Yang Huiyan and other senior executives took the initiative to reduce their salaries, and the maximum annual salary was reduced from 3 million yuan to 120,000 yuan
On the evening of December 12, Country Garden (HK02007, stock price HK$0.820, market value HK$22.951 billion) announced that the company's executive directors Yang Huiyan, Mo Bin, Yang Ziying and non-executive director Chen Chong took the initiative to request a reduction in salary, and signed a supplementary agreement on director services and a supplementary appointment letter with the company on November 1, 2023. According to the announcement, Yang Huiyan, Mo Bin, Yang Ziying and Chen Chong's adjusted annual salary is 120,000 yuan, compared with 370,000 yuan, 3 million yuan, 2 million yuan and 370,000 yuan respectively.
Comments: This move may be due to the company's management for the company's operational pressure and social responsibility considerations, or it may be to be consistent with the company's employees and shareholders, reflecting the executive's dedication and sense of responsibility.
NO.6 The fourth batch of centralized land supply in Shanghai traded 12 plots, with a total of 36.2 billion yuan
On December 15, the four plots of land transferred in the second round of four batches of centralized land supply in Shanghai were all sold, with a total transaction of 21,390.13 million yuan, an area of 314,400 square meters, and a total construction area of 832,300 square meters. Among the 4 land parcels, 2 residential land parcels were transacted at a premium, of which the residential land parcel located in Jiangchuan Community, Yuanqiao Town, Minhang District, was transacted at the highest price limit and the upper limit of "high quality", and the other 2 comprehensive land parcels involving residential land were transacted at the reserve price. Together with the 8 plots sold in the first round on December 5, the fourth batch of centralized land supply in Shanghai has collected a total of 36.2 billion yuan.
Comments: This shows that Shanghai's land market is still hot, and real estate companies have a strong demand and competition for Shanghai's land resources, which also reflects the supply-demand relationship and price trend of Shanghai's real estate market.
NO.7 Wuhan adjusted the conditions for buying a house and settling down, and canceled the restrictions on first-time home purchase, area and total price
On December 11, according to the official WeChat message of "Ping An Wuhan", Wuhan optimized the population settlement policy and adjusted the conditions for housing purchase and settlement, which was implemented on December 7. Specifically, Wuhan has cancelled the restrictions on "first-time commercial housing" in the original purchase and settlement business, as well as the area and amount of the purchase. Non-Wuhan household registration personnel who purchase a house with their own property rights in the city, obtain a real estate property right certificate or a house ownership certificate, and a land ownership certificate, and the housing certificate states that the purpose is residential (except for self-built houses on collective land), can apply for settlement. The original two businesses of "purchase of commercial housing in the new urban area" and "purchase of commercial housing in the central urban area" were merged and adjusted to the business of "settlement of housing with self-owned property rights". At the same time, Wuhan has abolished the requirement that people with household registration in the new urban area must have been employed and started a business in the central urban area or development zone for one year when they move into the central urban area and settle in the development zone.
Comments: The abolition of restrictions on first-time home purchases, area and total price simplifies the procedures for buying and settling down, reduces the difficulty of purchasing houses for non-local household registration personnel, and is conducive to population flow and urban development.
NO.8 In the first 11 months, the national second-hand housing transaction volume accounted for 37.1%, a record high
On December 13, at the 2023-2024 China Economic Annual Conference held at the China Center for International Economic Exchanges, Dong Jianguo, member of the party group and vice minister of the Ministry of Housing and Urban-Rural Development, said: From January to November this year, the proportion of second-hand housing transactions in the country reached 37.1% of all housing transactions, creating a record high.
Comments: This shows that the activity and maturity of the second-hand housing market have improved, and the second-hand housing has become an important part of the real estate market, which also reflects the diversification and personalization of buyers' consumption concepts and needs.
NO.9 The "cross-provincial general office" of real estate registration in mainland China will gradually achieve full coverage of key areas
According to Xinhua News Agency, the relevant person in charge of the Ministry of Natural Resources said on December 14 that since 2023, the Yangtze River Delta region has handled nearly 11 million online businesses such as transfer registration, mortgage registration, and information inquiry, effectively serving the needs of remote services, reducing the cost of enterprises, improving the happiness of the people, promoting the optimization of the business environment, and helping the high-quality development of regional integration in the Yangtze River Delta. At the recent symposium on deepening the integration of real estate registration in the Yangtze River Delta region, the Ministry of Natural Resources said that the next step will be to deepen the results of the reform, promote the transformation of real estate registration from "online can be done" to "easy to do online" and "full online office", accelerate the realization of the Yangtze River Delta real estate registration of the whole business type, the integration of the whole regional coverage of the "cross-provincial general office", and promote the experience and practices to Beijing, Tianjin, Hebei, Chengdu and Chongqing and other regions, and gradually achieve full coverage of key regions in the country.
Comments: This reflects the progress and effectiveness of the "cross-provincial general office" of real estate registration in mainland China, realizes the online handling of real estate registration and cross-provincial general handling, provides convenience for personnel and enterprises working in different places, reduces service costs, improves service efficiency, promotes the optimization of the business environment, and helps the high-quality development of regional integration.
NO.10 Xi'an issued detailed rules for the supervision of pre-sale funds for commercial housing, which shall not exceed 50% before the acceptance of the main structure
On December 13, the Xi'an Municipal Bureau of Housing and Urban-Rural Development issued a notice on the issuance of the "Implementation Rules for the Supervision and Administration of Pre-sale Funds of Commercial Housing in Xi'an", mentioning that the amount of key regulatory funds for residential projects shall be implemented in accordance with the following standards in principle. If the average price of the project is less than 20,000 yuan/square meter: 3,800 yuan/square meter multiplied by the construction area (rough), 5,500 yuan/square meter multiplied by the construction area (full decoration), and if the average price of the project is greater than or equal to 20,000 yuan/square meter: 20% of the average price of the project multiplied by the construction area (rough), 30% of the average price of the project multiplied by the construction area (full decoration).
Comments: This plays an important role in regulating the use of funds by real estate development enterprises, preventing misappropriation of funds and illegal inflow into other fields, ensuring the normal construction and delivery of real estate projects, and maintaining the order and stability of the real estate market.
National Business Daily
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