T.China’s richest female real estate tycoon, billionaire wo Wu Yajun When Yang Huiyan— Net worth totaled $3.6 billion in just hours after the country’s regulators took a surprising turn, announcing a comprehensive package of measures aimed at helping the ailing real estate industry.
To ensure the “stable and healthy development” of the property market, authorities including the central bank of China, the People’s Bank of China and the China Banking and Insurance Regulatory Commission (CBIRC) issued a 16-item document on Friday. This included measures to increase lending and liquidity. according to For multiple media coverage.
Screenshots of the document are also available online, showing that the regulator has asked banks to meet developers’ “reasonable” funding needs with sound corporate governance, extend debt service payments for up to one year, and extend private and state-owned real estate. It shows that you encouraged them to deal with the company. on an equal footing.
“We see this as the most significant turnaround since Beijing sharply tightened funding in the property sector,” Nomura economists led by Lu Ting wrote in a research note on Monday. “Thus, these cash-strapped developers (particularly private companies), construction companies, mortgage borrowers, and other relevant stakeholders can breathe a sigh of relief.”
Shares of several major real estate companies surged in response, with billionaire Yang Huiyang’s Hong Kong-listed Country Garden soaring 40.6% as of noon Monday, to close at the same billion. Billionaire Wu Yajun’s Longfor Group also listed in Hong Kong, surging 22.8%. Yang’s subsequent $2.4 billion increase in wealth and Wu’s $1.2 billion made these two moguls one of his five most profitable companies. rice field. Forbes Real Time Billionaire List On the same day.
Indeed, Yang’s Country Garden and Wu’s Longfor Group have also been hit by China’s crackdown on once-soaring house prices and aggressive corporate borrowing. shimao group, Snack China Holdings When China Evergrande Group.
Country Garden, for example, saw its net income plummet 96% to $612 million in the first half of this year.China property sales have been declining for 14 yearsth That’s because homebuyers’ confidence has waned amid constant crackdowns.
Shen Meng, managing director of Beijing-based boutique investment bank Chanson & Co., warns that the 16-point plan will by no means help the entire sector. “The policy is aimed at preventing large-scale defaults and systemic financial risks when many developers face debt repayments due next year,” he said. “Another focus of these policies is to ensure the delivery of sold but stagnant construction projects.”
Chinese developers hold at least $55 billion in combined bonds over the next two years, but face declining sales and limited refinancing options, Moody’s Investors Service said in an Oct. 27 research report. pointed out that it does. Companies that have run out of money are halting construction of pre-sale housing projects, sparking rare public protests and mortgage boycotts across the country.
But a reversal of fortunes for beleaguered real estate firms such as Evergrande is unlikely as authorities hold back from bailing out more firms, Shen said.The company’s troubled billionaire founder Hui Ka Yan has come to symbolize a tycoon who went all-out in debt to finance business expansion. Once Asia’s richest person, Hui’s net worth has fallen from his peak of $42.5 billion in 2017 to now $2.9 billion. struggle to rebuild Total debt exceeds $300 billion.