On March 14, China Greatwall Technology Group Co.Ltd(000066) Asset Management Co., Ltd. (hereinafter referred to as “Great Wall assets”) announced on its official website that the company was approved to publicly issue 10 billion yuan of financial bonds in the national inter-bank bond market. As for the purpose of the bond, the announcement shows that the raised funds will be mainly used for the risk resolution and disposal of high-quality projects of key real estate enterprises, the main business of related non-performing assets such as the rescue of the real estate industry and the repayment of maturing stock bonds.
It is reported that the Great Wall Asset was approved to issue 10 billion yuan of bonds, which is the second national asset management company (hereinafter referred to as “AMC”) to issue bonds for the rescue of real estate enterprises after China Oriental Asset Management Co., Ltd. (hereinafter referred to as “China Oriental”) in February.
Yan Yuejin, research director of the think tank center of E-House Research Institute, said in an interview with the reporter of Securities Daily that the successive issuance of bonds by the two national AMCs to bail out real estate enterprises is another positive action in the resolution of non-performing real estate assets.
According to Yan Yuejin, since January, the real estate financial policy has been moderately relaxed. At present, two national AMCs issue bonds, which further reflects the idea of AMC’s continuous deepening, active financing and assisting in the disposal of non-performing assets.
“It is expected that after the two national AMCs, the number of AMCs following up the issuance of bonds will increase. At the same time, we need to see that some real estate enterprises should actively pay attention to such financial institutions and take the initiative to form cooperation. This can bring opportunities for the disposal of non-performing assets of real estate enterprises. The disposal of such work in place will objectively contribute to the improvement of the capital of real estate enterprises.” Yan Yuejin said.
Chen Xing, deputy research director of the enterprise business department of China Index Research Institute, added to the reporter of Securities Daily that according to incomplete statistics, in the collection and M & A activities since this year, the collection and M & A from the shareholders of the project partners and the collection and M & A from the third party basically account for half respectively, while the third-party collection and M & a still focuses on the acquisition of developers, and few financial institutions take the initiative to take over the project. The official admission of state-owned AMC indicates that the participants in M & A activities will be more diversified.
It is worth mentioning that the notice on doing a good job in M & a financial services of key real estate enterprise risk disposal projects jointly issued by the people’s Bank of China and the China Banking and Insurance Regulatory Commission mentioned that banking financial institutions are encouraged to actively provide services for M & A enterprises to issue debt financing instruments and improve the issuance efficiency. Then in January this year, it was reported that the financial management department convened several national AMC meetings to study participating in asset disposal, Project M & A and related financial intermediary services of venture real estate enterprises in accordance with the principles of marketization and legalization. After a short time, the approval of the two AMC debts was completed.
Chen Xing believes that the debt approval has been completed in recent months, indicating that the current targeted loose financing policy is implemented very timely and quickly.
According to Chen Xing, up to now, 130 billion yuan of M & A financing has been released from various channels, including 35 billion yuan of direct bond financing from banks and asset management, and about 80 billion yuan of credit bond financing in the real estate industry since January. The M & a bond financing of financial institutions has been equivalent to 44% of the direct bond financing of real estate enterprises, which has played a powerful supplementary role in the current depressed financing environment of the industry.
\u3000\u3000 “On the whole, the issuance of M & A financing bonds of state-owned asset management companies provides new funds and opportunities for the real estate industry. From the perspective of real estate enterprises, we should seize the policy window period, comply with the policy guidance, improve the industry liquidity through M & A activities, and qualified enterprises take the opportunity to expand channels to achieve financing. Real estate enterprises in liquidity crisis need to quickly dispose of assets to supplement short-term funds Board. ” Chen Xing said.
