On March 16, the Financial Stability and Development Committee of the State Council held a special meeting to study the current economic situation and capital market issues. The meeting was chaired by Liu He, Member of the Political Bureau of the CPC Central Committee, Vice Premier of the State Council, and Director of the Finance Committee. Responsible comrades from relevant departments attended the meeting.
The meeting mentioned that, with regard to real estate enterprises, it is necessary to timely research and propose effective solutions to prevent and defuse risks, and propose supporting measures for the transition to a new development model.
On the same day, Yi Gang, President of the People’s Bank of China and Director of the Office of the Financial Committee, presided over a meeting of officials above the division level. Improve the political position, resolutely implement the work requirements of the Finance Committee, take an active role, and implement the spirit of the Central Economic Work Conference and the deployment of the National “Two Sessions”. With regard to real estate, we must insist on making progress while maintaining stability, prevent and resolve real estate market risks, steadily advance and complete the rectification work of large platform companies as soon as possible, promote the healthy and stable development of the platform economy, and improve international competitiveness.
Yang Chang, head of the policy group and chief analyst of the China-Thailand Securities Research Institute, believes that real estate is a key industry sector with a large macroeconomic impact, especially in 2 Under the background of weak performance of medium and long-term loans to monthly households, effective measures should be taken to prevent and defuse risks and provide support for stable growth.
Zhuge Housing Search Data Research Center Director Wang Xiaochang said that the meeting studied related issues, including macroeconomic operation, real estate companies, platform economic governance, and Hong Kong’s financial market stability. The meeting raised real estate enterprises as a problem, which means that the importance of real estate enterprises’ problems has increased, and the content of the meeting’s statement has released a positive signal to real estate enterprises.
Regarding real estate companies, I mentioned two issues. One is to promptly study and propose effective and effective risk prevention and mitigation solutions. Market confidence has not improved rapidly, and the real estate transaction scale has declined. From January to February, the sales index has returned to a negative value year-on-year, and the market has not recovered as expected. The pressure on real estate companies is obvious to all. At present, the virtuous circle in the real estate market is one of the key points of the policy. As one of the important participants, the stable and healthy development of enterprises is also extremely important, and there may be substantive policies to support the development of the industry in the future; The current housing model in China is still dominated by commercial housing, and the future market supply entities will be more diversified, especially the development of rental housing will be vigorously supported, including the improvement of supporting measures for rental housing.
Yan Yuejin, Research Director of the Think Tank Center of E-House Research Institute, believes that three points can be seen in the proposal of real estate enterprises in this meeting.
First, risk prevention and resolution of real estate enterprises continue to be the focus of current work. In the follow-up, we will actively introduce policies to address such risks, which is worthy of market expectations.
Second, the formulation of supporting measures for the transformation of the new development model should be accelerated. From this sentence, the new development model is actually aimed at real estate enterprises. In other words, real estate companies must actively move closer to the new development model and actively transform. All localities also need to actively introduce supporting policies. Including the guidance of the industry, the support of land finance, taxation and finance, and the introduction of various incentive policies for the industry, etc., this will help to promote the development of real estate enterprises towards a new model.
Thirdly, the concept of new development model has been expressed in the Central Economic Work Conference last year and other occasions. Subsequent real estate enterprises need to actively pay attention to urban renewal, Affordable rental housing, asset-light development model, etc.
Yan Yuejin believes that the attention of the Financial Commission’s policy to real estate enterprises is of positive significance for real estate enterprises. First, housing companies currently have an anxiety and an egalitarian mentality. The policy of the Financial Commission clearly shows that the attention to companies will increase, especially in terms of policy relaxation, market activation, and creation of a better business environment. New performance. Second, housing enterprises themselves need to actively guard against risks. While stabilizing development and promoting development, it is also critical to do a good job of risk identification and early warning. Third, all kinds of supportive policies will be more powerful than imagined, and this is something that real estate companies can look forward to. Real estate enterprises should take the initiative to grasp the favorable points of the policy during the recent period of market confusion, and take the initiative to make adjustments and innovations to better outperform the market.
Senior analyst Pan Hao of Shell Research Institute believes that this meeting has released a positive signal in the aspect of “real estate enterprises facing financial pressure and lack of confidence”. To resolve the problem, the government, housing enterprises, and financial institutions need to collaborate to re-allocate funds and resources in the industry, and even create conditions for some housing companies to exit or transform in an orderly manner.
With regard to the new development model of housing enterprises, Pan Hao said that, first of all, the ability to be “slow” requires housing companies to think and build. The solution to the “prominent housing problems in big cities” proposed in recent years requires more participation from housing companies in guaranteeing In the process of rental housing, housing needs of new citizens, urban renewal, and renovation of old communities, not only development and constructionAnd operations management. This is a challenge for real estate companies to add more “operations” after the original “land purchase-construction-sale-delivery”, so as to obtain long-term benefits from asset management and asset operation . Secondly, the ability to build slow requires “slow” capital support, so that the cost of capital can be moderately reduced, so that housing enterprises have the conditions to earn “slow” money, and abandon the “capital-land-more capital-more land” approach. Logic, so that land and projects can provide enterprises with longer-term cash flow, gradually build a “slow” ability, and move towards a virtuous circle.