Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

<ul>
<li>Some developers have been informed by banks that M&amp;A loans will not be counted in the "three red lines" if these loans are used for takeovers of insolvent companies' projects</li>
<li>Stronger state and private developers will be given funding support for project-level M&amp;A</li>
<li>The impact of credit policy plus local level policy shifts will be continued</li>
</ul>


Some developers have been informed by banks that M&amp;A loans will not be counted in the "three red lines" if these loans are used for takeovers of insolvent companies' projects
Stronger state and private developers will be given funding support for project-level M&amp;A
The impact of credit policy plus local level policy shifts will be continued


Developers Informed by Banks that M&A Loans Are Excluded from Three Red Lines

<ul>
<li>PBOC and CBIRC  reportedly jointly issued a "Notice on Doing a Good Job in Financial Services for the Mergers and Acquisitions of Risk Disposal Projects of Key Real Estate Enterprises.</li>
<li>The notice focused on encouraging high-quality developers to merge with or acquire high-quality projects of vulnerable counterparts that have encountered operational difficulties.</li>
<li>The Notice is aiming to restore confidence among local homebuyers in the presale system, support the local economy and reduce bad debt</li>
</ul>


PBOC and CBIRC  reportedly jointly issued a "Notice on Doing a Good Job in Financial Services for the Mergers and Acquisitions of Risk Disposal Projects of Key Real Estate Enterprises.
The notice focused on encouraging high-quality developers to merge with or acquire high-quality projects of vulnerable counterparts that have encountered operational difficulties.
The Notice is aiming to restore confidence among local homebuyers in the presale system, support the local economy and reduce bad debt


China Encourage Real Estate Project-Level M&A

<ul>
<li>The Shanghai Housing Administration reportedly held two small, closed-door meetings with some local developers on 9 and 15 December</li>
<li>According to the meeting, the Shanghai government would coordinate with financial institutions in a bid to extend loans for the key projects</li>
<li>This comes as <a href="https://www.smartkarma.com/entities/shimao-property-holdings-limited" target="_blank" data-smartkarma-citation="entities:8375:1" rel="noopener">Shimao Property Holdings (813 HK)</a> , a Shanghai-based developer, has seen increasing negative reports concerning its financial conditions recently</li>
</ul>


The Shanghai Housing Administration reportedly held two small, closed-door meetings with some local developers on 9 and 15 December
According to the meeting, the Shanghai government would coordinate with financial institutions in a bid to extend loans for the key projects
This comes as Shimao Property Holdings (813 HK) , a Shanghai-based developer, has seen increasing negative reports concerning its financial conditions recently


Shanghai Encourages Banks to Extend Loans to Critical Property Projects

<ul>
<li>Quality developers are said to be supported by NAFMII to issue M&amp;A bonds with a long maturity to acquire real estate projects from troubled developers</li>
<li>This adds further fuel to the rumour that financing for M&amp;A activity will be outside of the three red lines</li>
<li>The Politburo December meeting provided a positive signal for property policy that is expected to be echoed in the Central Economic Work Conference statement this week</li>
</ul>


Quality developers are said to be supported by NAFMII to issue M&amp;A bonds with a long maturity to acquire real estate projects from troubled developers
This adds further fuel to the rumour that financing for M&amp;A activity will be outside of the three red lines
The Politburo December meeting provided a positive signal for property policy that is expected to be echoed in the Central Economic Work Conference statement this week


China State-Owned Developer Plans to Issue M&A Bonds on Interbank Market

<ul>
<li>The National Association of Financial Market Institutional Investors (NAFMII), held a discussion meeting joined by representatives from real estate developers.</li>
<li>The meeting could signal that regulators might ease domestic bond issuance for developers.</li>
<li>We believe that the market has been over-pessimistic on the real estate sector.</li>
</ul>


The National Association of Financial Market Institutional Investors (NAFMII), held a discussion meeting joined by representatives from real estate developers.
The meeting could signal that regulators might ease domestic bond issuance for developers.
We believe that the market has been over-pessimistic on the real estate sector.


Developers Said To Plan Raising Funds Through Interbank Debt Issuance

China

Longfor Properties Co. Ltd. operates in the property development, property investment and property management businesses in China.

Price Gauge
52-week Range	0.00 - 0.00
Market Cap (USDm)	0.00
P/E	0.00
Dividend (Yield)	0.00

Longfor Properties (960 HK)

Developers Informed by Banks that M&A Loans Are Excluded from Three Red Lines

We maintain our view that state-backed developers would take the advantage to obtain quality assets and gain market share, of which our recommends

Li Tang

China Encourage Real Estate Project-Level M&A

The Notice is aiming to restore confidence among local homebuyers in the presale system, support the local economy and reduce bad debt

Li Tang

Shanghai Encourages Banks to Extend Loans to Critical Property Projects

Shanghai said relevant departments would help coordinate with financial institutions in a bid to extend loans for the key projects, in order to...

Li Tang

China State-Owned Developer Plans to Issue M&A Bonds on Interbank Market

The new move adds further fuel to the rumour that financing for M&A activity will be outside of the three red lines,This is a crucial development...

Li Tang

Developers Said To Plan Raising Funds Through Interbank Debt Issuance

We believe that the market has been over-pessimistic on the real estate sector. The meeting could signal that regulators might ease domestic bond...

Li Tang

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)