The first real estate rescue fund project in Zhejiang was launched, and Xiangsheng Zhuji project received 700 million capital injection

Image source: Xiangsheng Holding Group official website

Reporter｜Wang Tingting

As an important measure of the local government to “guarantee the handover of buildings”, Zhejiang’s first real estate bailout fund project has recently landed in Shaoxing, and the project of Xiangsheng Holdings has become the beneficiary of the fund.

On the morning of October 11, Xiangsheng Holdings issued an announcement stating that the real estate bailout and stabilization industry fund established by the Shaoxing Municipal People’s Government has been established, and one of the company’s projects in Zhuji may become one of the potential beneficiaries of the stabilization fund. .

Xiangsheng Holdings told Jiemian News that the bailout fund is mainly led by the government’s evaluation, and the company is still waiting for further information on the specific implementation.

Xiangsheng’s project supported by the bailout fund this time is City Lights in Zhuji, with a total injection of 700 million yuan.

According to the annual report information released by Xiangsheng, the project should occupy a total construction area of ​​330,000 square meters.

Regarding the reason why the Xiangsheng Zhuji project can become the first bailout project of the Shaoxing City Stabilization Fund, Shaoxing previously stated that the project has relatively high net assets and a good reputation in the market in the early stage. The sales are cold, and the liquidity of funds is difficult.

The intervention of the stabilization fund can not only enhance the liquidity of the project funds, speed up the construction process, and ensure the normal delivery of the project. Moreover, because the fund is endorsed by state-owned assets, it can better empower the “credit investigation” of project sales, boost consumers’ confidence in buying houses, and enhance market vitality.

As the first real estate bailout fund in Zhejiang Province, the Shaoxing City Stabilization Fund was officially launched on September 29.

The relevant person in charge of the Shaoxing real estate special class said that Shaoxing will gradually expand the scope of the bailout of the stabilization fund, promote the leverage effect of “revitalizing one and activating a batch”, and ensure the substantive and continuous completion of the stabilization and bailout projects. “Guaranteed handover of buildings” will promote the steady and healthy development of Shaoxing’s real estate market.

According to public information, the Zhuji Xiangsheng City Light Project is located on the southwest side of Yingbin Road and Huancheng West Road in Zhuji City. source sales.

Take the LOFT apartment with a building area of ​​47 square meters opened in July this year as an example, with a total price of about 490,000 yuan. In addition, the area of ​​high-rise residential units on sale is about 104-165 square meters, and the average selling price is about 17,800 yuan/square meter.

Jiemian News learned that the land plot of the project was sold on February 7 last year, and Xiangsheng Holdings won the bid at the transaction floor price of 4,302 yuan/square meter and 51,730 square meters of supporting facilities. In May last year, the land parcel was named “Light of Xiangsheng City”.

Since the liquidity crisis in the second half of last year, there have been reports of suspension of projects under Xiangsheng Holdings, including the Xiangsheng City Lights in Shaoxing, the Xiangsheng Yunjing Project, and the Xiangsheng Yunjing Project in Hefei.

The fact that the City Lights project can get the support of the local government’s stabilization fund is not a lot of good news for Xiangsheng Holdings in the near future.

Xiangsheng Holdings, which has just experienced a winding-up petition from some creditors and a stock suspension, resumed trading on September 26. This time, the project was supported by the bailout fund, which also conveyed some confidence to the capital market.

At noon on October 10, the share price of Xiangsheng Holdings increased by 44%. As of yesterday’s close, the share price of Xiangsheng Holdings increased by 37.34%, closing at HK$0.32 per share. On the morning of October 11, the company’s stock price had a maximum increase of 9.375%, and has since fallen.

As a Zhejiang real estate company, Xiangsheng Holdings is based in Zhuji, Shaoxing. For the project sales in Zhuji, this time also has a clear pulling effect.

A relevant person from Xiangsheng Holdings told Jiemian News that such news is especially good for the project, and the company’s sales in Zhuji have shown signs of recovery. During the past National Day holiday, Xiangsheng’s real estate in Zhuji had a total of 367 groups of visitors, and a total of 43 sets of commercial housing were sold.

In addition to the City Lights project supported by the bailout fund, Xiangsheng Holdings currently sells projects in Zhuji including Nanshan County Garden (Xiangsheng Jiangnanli), Xiangsheng Chunfengshili, Chenguang Mansion (Central South Xiangsheng Chenguang Collection), etc. .

Since the second half of the year, “guaranteing the delivery of buildings” has been a top priority in the real estate industry. On July 28, the Politburo meeting proposed to stabilize the real estate market, implement city-specific policies and make full use of the policy toolbox, support rigid and improved housing needs, consolidate the responsibilities of local governments, ensure the delivery of buildings, and stabilize people’s livelihoods.

In August , the Ministry of Housing and Urban-Rural Development, the Ministry of Finance and the People’s Bank of China also introduced measures to support the construction and delivery of residential projects that have been sold overdue and difficult to deliver through special loans from policy banks. After this, the policy of “guaranteing the handover of buildings” in various places has been introduced one after another.

In terms of financing for housing companies, there is also good news recently. According to Caixin, at the end of September, the central bank and the China Banking and Insurance Regulatory Commission asked six state-owned banks, including China Construction Bank, Industrial and Commercial Bank of China, Agricultural Bank of China, and Bank of China, to increase their support for real estate financing. Each bank will provide at least 1,000 yuan within this year. billion in financing.

A series of policies are focused on guiding the demand side of the real estate market to stabilize and rebound, and to promote the recovery of the financial environment of the real estate industry. Today, the effect of the policy is gradually emerging.

Taking the real estate rescue fund as an example, Zhengzhou has set up a real estate rescue fund of 10 billion yuan earlier. At present, 8 projects have been confirmed, involving a total investment of 2.7 billion yuan.

In addition to Zhengzhou, Henan, Nanning, Guangxi has also set up a stable real estate fund with an initial scale of 3 billion yuan. Hubei Asset Management Co., Ltd. and Zheshang Asset Management Co., Ltd. jointly set up a rescue fund of 5 billion yuan to serve “guarantee the delivery of buildings, protect people’s livelihood, and ensure stability”.

With the recent implementation of Zhejiang’s first real estate bailout fund project in Shaoxing, the substantial efforts made by various localities to “guarantee the delivery of buildings” have achieved remarkable results, which have a positive impact on increasing the confidence of home buyers and promoting the stable development of the real estate industry.