Resolving the debt risk of real estate enterprises requires determination and cannot be achieved overnight

2023-08-18

Recently, some top real estate companies have exposed their debt risks, which has affected market expectations. It should be clarified that the problem is phased, and with the implementation of policies and the gradual implementation of market adjustment mechanisms, the market can achieve stable development. To strengthen confidence, maintain composure, and continue to do a good job in related work. At the same time, it is important to be aware that the process of risk resolution cannot be achieved overnight, and the market needs to be patient. To resolve the debt risk of real estate enterprises, we need to focus on the main contradictions. Chemical insurance work is an organic whole, focusing on high-quality real estate enterprises with a focus on their main business, compliant operation, good qualifications, and certain systemic importance. We will carry out four actions: "asset activation", "debt continuation", "equity supplementation", and "expected improvement" to guide their balance sheets back to a safe range. On this basis, point by point. Specifically, market-oriented approaches can be used to support high-quality real estate enterprises in mergers and acquisitions of key real estate enterprises, in order to complete structural adjustments and orderly eliminate risks. Project mergers and acquisitions between real estate enterprises are an effective market-oriented means for the survival of the fittest and the resolution of risks in the real estate industry. Previously, the financial management department had jointly issued the "Notice on Providing Financial Services for Mergers and Acquisitions of Key Real Estate Enterprise Risk Disposal Projects". Next, it is necessary to create a good financing environment for mergers and acquisitions. Among them, commercial banks should steadily and orderly carry out merger and acquisition loan business to improve the service efficiency and success rate of mergers and acquisitions. To resolve the debt risk of real estate enterprises, it is necessary to take the right medicine to the case, continue to provide sufficient liquidity for the industry, meet reasonable financing needs, and repair financing expectations. Currently, it is particularly necessary to increase the investment of development loans. Since last year, due to the tightening of non-financial liabilities, the demand for development loans from real estate enterprises has significantly increased. Development loans are mainly used for the construction of real estate projects, which helps to ensure project delivery. Next, commercial banks can prioritize providing credit support to temporarily struggling and well managed real estate enterprises under the principles of marketization and rule of law, and give them a helping hand and a free ride. In addition, it is necessary to make good use of private enterprise bond financing support tools, stabilize the financing expectations of private real estate enterprises, and boost market confidence. Resolving the debt risk of real estate enterprises requires both immediate action and long-term planning. Surgical surgery only temporarily eliminated the lesion, and in order to maintain long-term health of the body, it is necessary to promote a smooth transition of the real estate industry to a new development model. One of the paths is to carry out pilot sales of existing houses. The Ministry of Housing and Urban Rural Development has previously clearly stated that existing housing sales can be carried out if conditions permit, and if pre-sales continue to be implemented, financial supervision responsibilities must be implemented in place to prevent fund evasion. Finally, we need to maintain composure and steadily and orderly resolve risks during development. At present, we need to urgently study the fundamental strategies to promote the healthy development of the real estate industry. Among them, it is necessary to reform and improve the basic systems related to real estate, such as land, finance, taxation, and finance, increase the supply of market-oriented long-term rental housing and affordable rental housing through multiple channels, promote the transformation of real estate enterprises, and orderly build a new model for the healthy development of the real estate industry. (New News Agency)

Edit:Hou Wenzhe    Responsible editor:WeiZe

Source:economic dairy

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