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On December 9, 2022, a total of 2.43 billion yuan corporate bonds were booked and issued by Sichuan New Hope Real Estate Development Co., Ltd. and Midea Real Estate Group Limited. China Securities Finance Corporation Limited, Tianfu Credit Promotion Co., Ltd., Chengdu Wuhou SME Credit Guarantee Co., Ltd., Sinolink Securities Co., Ltd. and Guotai Junan Securities Co., Ltd. jointly created credit protection instruments for related bonds to enhance their credit. The first batch of "central-local cooperation" credit enhancement model to help private enterprises' bond financing is a new exploration by the Shanghai Stock Exchange (SSE) under the guidance of the China Securities Regulatory Commission (CSRC), in collaboration with Sichuan and Guangdong Securities Regulatory Bureau and China Securities Finance Corporation Limited, local guarantee and credit enhancement companies, securities companies and other parties. In enhancing the investment and financing matchmaking of private real estate enterprises and boosting market confidence, the practice has built a brand new channel and bridge and served as a good example.
Since 2022, under the guidance of the CSRC, the SSE has resolutely implemented the decisions and arrangements of the CPC Central Committee and the State Council, adhered to implementing category-based policies, constantly improved the bond financing support mechanism for private enterprises, and assisted the reasonable financing of real estate enterprises. Sticking to the bottom line of no systemic risk, it has made great efforts to maintain the stable and healthy development of the real estate market and better serve the stable macroeconomic performance.
I. Adhering to implementing category-based policies to unblock financing channels for private real estate enterprises. Since 2022, the SSE has taken the initiative to contact key private enterprises, kept tracking and providing personalized financing services, focused on solving difficulties and blockages, and supported private enterprises to raise 23.4 billion yuan through corporate bonds. It has adhered to implementing category-based policies, maintained reasonable and moderate financing of SSE-listed real estate enterprises in the bond market, and helped private real estate enterprises with sound operation to restore their financing capacity. Fund-raised for real estate companies totaled at 197.5 billion yuan.
II. Strengthening information disclosure to stabilize market expectations. Since 2022, the SSE has actively guided real estate enterprises to maintain sound and sustainable financing capacity by stabilizing self-development and optimizing debt structure. It has organized voluntary information disclosure by real estate enterprises such as Longfor Group Holdings Limited and Midea Real Estate Group Limited, and guided private real estate enterprises such as Country Garden Property Development Co., Ltd., Gemdale Group, Seazen Holdings Co., Ltd., CIFI Holdings (Group) Co. Ltd. and Dahua Group to voluntarily repurchase their bonds, thus sending positive signals and stabilizing market expectations.
III. Innovating financial products to meet diverse financing needs. Since 2022, guided by the CSRC, the SSE has launched sci-tech innovation bonds to support the bond financing of private enterprises in high-tech and strategic emerging industries such as Xiaomi Communications Co., Ltd., Jinko Power Co., Ltd., Fosun Group, etc. Core enterprises in the industrial chain have been promoted to issue more than 100 billion yuan of asset securitization products based on accounts receivable, etc., which expanded financing channels for upstream and downstream private enterprises. Three Government-subsidized Rental Housing REITs have been successfully issued and listed, with a net recovery of 2 billion yuan, leveraging social capital of more than 10 billion yuan.
IV. Forming synergy to strengthen credit support for private enterprises. The SSE has promoted CDS shelf offering and CDX pilot landing for private enterprises, created credit protection instruments for private enterprises of 0.732 billion yuan, and helped private enterprises raise 15.7 billion yuan. It has actively promoted three private real estate enterprises, namely CIFI Holdings (Group) Co. Ltd., Longfor Group Holdings Limited and Midea Real Estate Group Limited, to successfully issue three bonds of 2 billion yuan with the support of CDS jointly created by China Securities Finance Corporation Limited and securities companies, thereby pooling efforts and restoring market confidence.
V. Promoting investment and financing matchmaking to build a market exchange platform. Since 2022, the SSE has launched an innovative market service model of "SSE sets the stage for the market", and jointly organized more than 10 surveys on private enterprises and industrial debt financing and 2 seminars on credit protection instruments with the local Federation of Industry and Commerce and the Securities Regulatory Bureau. Five private real estate issuers, underwriters and bond institutional investors were specially organized to conduct investment and financing matchmaking exchanges, so as to guide investors to reasonably assess the investment value of private real estate enterprises, promote mutual trust in investment and financing, and reshape the investment and financing ecology of the market.
Recently, the CSRC has introduced measures to support equity and bond financing in the real estate sector, which has played a positive role in promoting the real estate market to revitalize existing assets, prevent risks, seek transformation and development, and better serve the stable macroeconomic performance. Going ahead, under the guidance of the CSRC and the spirit of the 20th CPC National Congress, the SSE will keep in mind our position as among "top priorities of the country", accumulating over a long period from less to more, unswervingly serve national strategies, consistently promote the bond financing of private enterprises, properly handle risks in the real estate bond market, strive to stabilize expectations, entities and the market, and fully implement the bond market to support the stable and healthy development of the real estate market.
