The real estate development sector opened actively. As of press time, Nanguo Real Estate’s daily limit, Dalong Real Estate, Shenzhen Real Estate A, Sunshine Shares, Tianfang Development, etc. followed suit.
On December 20, Yi Gang, Governor of the People’s Bank of China, presided over a meeting to convey and study the spirit of the Central Economic Work Conference, and study, deploy and implement the work. The meeting proposed to promote the smooth and healthy operation of finance. Adhere to the positioning that houses are for living in, not for speculation, implement differentiated housing credit policies according to cities, meet the reasonable financing needs of the industry, and support rigid and improved housing needs. Guide financial institutions to support the restructuring and mergers of the real estate industry, promote the prevention and resolution of risks in high-quality top real estate companies, and improve the asset and liability status of top real estate companies. Promote the construction of the long-term rental real estate market, and accelerate the exploration of new real estate development models in accordance with the direction of both rental and purchase.
Bank of China Securities believes that although the market policy side and the financing side of real estate companies have been released recently, the sales side of real estate companies is still relatively weak due to the weak willingness and demand of residents to buy houses. On the supply side, the real estate industry has initially formed a multi-dimensional financing support policy system including credit, bonds, equity financing, and pre-sale funds. In the future, credit risks in the real estate industry may continue to be resolved, and some leading private enterprises will be boosted by overall confidence and actual financial support, bringing about credit restoration. For specific targets, it is recommended to focus on two main lines: 1) mainstream central state-owned enterprises and regional real estate enterprises with deep cultivation; 2) high-quality private enterprises and mixed ownership real estate enterprises that marginally benefit from favorable policies.
Orient Securities believes that in the solution path, it will not adopt the method of exacerbating the high leverage and high turnover of real estate companies. It is expected that both sides of supply and demand will continue to make efforts to promote the slow recovery of industry fundamentals. We are optimistic about companies that can go through this cycle, and we are optimistic about the relative advantages of central state-owned enterprises and high-rated private enterprises with stable operations in the current competitive landscape.