Recently in the Institute released 2021 in the first three months of domestic real estate enterprises land acquisition area and land acquisition amount of one hundred companies ranking.
Beijing continues to introduce harsh regulations to curb speculation in the real estate market. In recent years, private real estate developers have withdrawn from the market due to financing difficulties, but state-owned enterprises have taken advantage of the situation and encircled land in the country to accumulate, so that many major cities still have high housing prices, the impact of which is worsening the phenomenon of housing difficulties. (Reported by Qiao Long/Cheng Wen)
According to the ranking of the top 100 domestic real estate enterprises in terms of land investment area and land purchase amount in the first quarter of this year released by the China Index Research Institute, only two real estate enterprises, namely Sunac and Binjiang, are purely private real estate enterprises among the top 10 enterprises in terms of land purchase amount; and among the top 10 real estate enterprises in terms of land investment area, there are four private enterprises, namely Wanda, Sunac, Bi Guiyuan and Xincheng Holdings, accounting for less than half of the total.
Zhang Yang, a member of the real estate industry in Shanghai, said in an interview with this station on Friday (7) that the government believes that the debt ratio of the assets of private enterprises is too high, so it strictly reviews the loan applications of private enterprises and restricts private property developers from buying land.
All real estate companies are required to keep their debt ratios within a certain range, so now private companies are busy trying to find ways to reduce their debt ratios, Zhang Yang said. I know a few finance directors of private real estate companies. They are being watched very tightly (by the government). If he can’t get a loan (from the bank), then he has no money to buy land.
State-owned enterprises have rich assets and better financing conditions than private enterprises
At present, the top 10 domestic real estate enterprises sales ranking, or mainly private real estate enterprises, but Zhang Yang believes that state-owned enterprises are protected by the government, banks also open the door to state-owned enterprises loans. Judging by the current scale of land investment, the pattern of the future ranking will certainly have a radical change.
Zhang Yang said: state-owned enterprises are “pro-son”, private enterprises no one to help you. Private enterprises want your debt ratio to meet the target as the first goal, state-owned enterprises do not see the requirement to meet the debt ratio. Xi Jinping did not say to make state-owned enterprises bigger and stronger, but now the main thing is to make state-owned enterprises bigger and stronger.
Owners of private enterprises are feeling the difficulty of running their business and some have moved their assets abroad, but Zhang Yang pointed out that a considerable number of them are blocked from leaving the country.
Zhang Yang said: So some of the big private real estate owners are at risk, I saw that they have not escaped, most of them are still in the country, so they are quite nervous, will not just go to grab land.
After the 18th National Congress of the Communist Party of China, the authorities have repeatedly stressed the need to enhance the status of the private economy: “to ensure that all types of economies are equal in the use of production factors, fair participation in market competition, and equal protection under the law.”
Beijing claims to support private enterprises but says one thing but does another
But the truth is not what the official document says. Liu Wentao, a Hubei-based Internet writer, told the station that all CCP documents or regulations are simply unbearable in the face of power.
Liu Wentao said: If the current situation is not reversed in these two years, the private sector and private enterprises to engage in suppression, for the development of the Chinese economy, the impact will be very far-reaching. The next ten years will be very bad, you see, these two years to happen.
The WeChat public number “expand the old dog” posted an article saying that the land reserve is a factor that directly determines the development potential of real estate enterprises. Under the new financing and control policies, the core advantage of central enterprises is the strength of capital, reflected in the ability to finance and financing costs on the strengths of other types of real estate enterprises can not be matched.
The article writes that the financing cost of large central enterprises, generally can be 2-3 points lower than private enterprises, or even more. Even some newly established project companies of central enterprises can achieve more than A inside the agency rating, and many parent companies of top 50 private enterprises cannot reach A. The huge gap behind this is the powerful national assets behind the central enterprises as credit backing.
In the first three months of this year, China’s top 100 real estate enterprises in terms of land investment amount and area, the first state-controlled enterprise “Greenland China” ranked first, with land investment amounting to RMB 32.8 billion, followed by state-owned enterprise “Poly Development” with RMB 26.9 billion, and ranked The third is the Xiamen Municipal Government’s “C&D Real Estate”, with a land investment of 23.9 billion yuan, and the fourth is “Shekou Merchants”, with a land purchase amount of more than 20 billion yuan.
Given the current political situation, many private companies in China have to cooperate with state-owned enterprises in order to continue to survive. Public opinion is that, by choosing to cooperate with state-owned enterprises to survive, the size of private enterprises will only continue to shrink and eventually become state-owned enterprises.
Recent Comments