房地产 prices in 100 cities fell by 0.02% month-on-month in December, and has now fallen for two consecutive months. In terms of mortgage loans, the average interest rate for first-hand mortgage loans and second-hand mortgage loans was 5.64% and 5.91% respectively in December, both lower than in November by 5 basis points. The average loan processing speed of 103 cities was shortened by 11 days in December compared to the previous month. The central economic work conference called for supporting the housing market to better meet the housing needs of购房者, promoting the healthy development and circulation of the real estate industry. The People's Bank of China and the China Banking and Insurance Regulatory Commission encouraged the acquisition of troubled real estate projects by large and medium-sized enterprises with good credit. The cities of Shijiazhuang, Huizhou, Xiamen strengthened the management of预售 funds for residential housing projects. The cities of Zhengzhou, Guilin, Jincheng issued new regulations to provide subsidies to购房者. Top 100 real estate developers saw a 35.2% year-on-year decline in sales volume of operation and management projects. Many real estate developers have a high proportion of outstanding loans to total assets. United Life Development plans to issue a bond with a coupon rate of 8% and a guaranteed convertible bond.龙湖集团 and Goldland Property registered financing tools in the interbank market. Bond issuance and maturity: In December, the real estate industry issued 523.87 billion yuan of bonds, with a net financing outflow of -233.13 billion yuan. From September 2020 to December 2021, the total bond size of the domestic real estate industry was reduced by about 2434.33 billion yuan. Credit events and spreads: There were 2 bond defaults and 4 bond extensions in December, with overdue principal and interest of about 41.53 billion yuan. Nine credit rating agencies and 42 bonds were downgraded. The credit spread of the real estate industry in China (median) rose by 9.69 basis points in December, with the credit spread of AA-rated bonds falling by 22.80 basis points. Conclusion and outlook: Financial regulators encourage large and medium-sized enterprises with good credit to acquire troubled real estate projects, and banks no longer count并购贷款 as part of the "three red lines"
