The financial regulatory authorities are planning to expand the “white list” for financing of real estate companies, leading to yet another surge in real estate stocks. Following a general rise in the real estate sector on November 6 due to the introduction of favorable policies, real estate stocks have once again risen across the board on November 21.
Hong Kong and A-share real estate stocks saw substantial gains, with companies like Sunac China, Rongsheng, Jingrui Holdings, and Xincheng Development leading the surge. This uptick in real estate stocks has been attributed to the news of the expansion of the “white list” for Chinese real estate developers by regulatory agencies.
The “white list” will include a total of 50 state-owned and private real estate companies, providing them with support in credit, debt, and equity financing. Financial institutions are expected to use this list as a reference for providing financial support to real estate companies. The move is aimed at improving the supervision and capital supervision of real estate enterprises and meeting the reasonable financing needs of real estate enterprises of different ownerships.
Li Yujia, deputy director of the Guangdong Provincial Housing Policy Research Center, believes that the proposal of “three no less than” will help block the chain of risk transmission, particularly for companies on the verge of default. This has led to positive signals in the capital market and is expected to improve the ongoing decline in the real estate market.
The positive news comes amid a weak financing surface and declining market confidence. If financial institutions’ support for real estate companies can be implemented as soon as possible, it will help improve the financial situation of real estate companies, and the positive signals will also be transmitted to the sales market, land market, etc., forming a virtuous cycle.
It is clear that the expansion of the “white list” for financing of real estate companies has resulted in a significant uptick in real estate stocks, signaling potential improvement in the real estate market. However, readers are advised to operate at their own risk and seek professional investment advice before making any financial decisions.
(Article source: Jiemian News)