In the first quarter of this year, the scale of bonds due by real estate companies was 222.5 billion yuan, and the financing environment may be further improved

In the first three quarters of 2023, real estate companies will usher in a wave of large-scale debt repayments, with the total size of maturing bonds reaching 552.8 billion yuan, a year-on-year increase of 6%. Among them, 280.5 billion yuan of domestic bonds matured, and 272.4 billion yuan of overseas bonds matured. Debt repayment pressure is mainly concentrated in the first quarter. The scale of maturing bonds reached 222.5 billion yuan, of which a total of 40 bonds matured in January. After excluding the part that has been redeemed in advance, the amount was about 91.6 billion yuan, an increase of 476% from the previous month. Since 2021, the amount of bonds issued by real estate companies has been less than the amount due for a long time, and the debt repayment of real estate companies has been under pressure. It is worth noting that in this wave of maturing bonds, 408.1 billion yuan belonged to private real estate companies, accounting for 73%. Some private companies are still under great pressure to repay their debts, and default events may be exposed. | Related reading (The Paper)

Qin Huimei

Chinese real estate companies are basically unwelcome to raise funds abroad, so they can only focus back on the domestic market. However, in addition to banks and state-owned AMCs that need help, private institutions will conduct more stringent investigations and screenings on the solvency of enterprises.

According to Crane’s statistics, in the first three quarters of this year, private real estate companies have to pay off more than 400 billion in debt. In the face of a possible thunderstorm, not only enterprises are under great pressure, but local governments are also under great pressure. After all, although I don’t want to admit it, the fact remains that the real estate issue must have a soft landing, otherwise everyone will have to experience the pain of the next-door neighbor Japan in the past ten years in the future.

How to clear mines has become the focus of the work of the government and enterprises this year. As for the form, in addition to giving the green light as much as possible for consumers to buy houses, it is basically operations such as loan repayment, project acquisition, and debt-to-equity swap. In terms of division of labor, the rescue of large enterprises is mainly led by the four major asset management companies. And for some small and medium-sized projects, local AMC will play a major role.

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