The People's Bank of China announced on the 27th that the 2021 third quarter regular meeting of the Central Bank's Monetary Policy Committee was held in Beijing three days ago. The meeting rarely spoke out on the real estate development situation, saying that it would maintain the healthy development of the real estate market and safeguard the legitimate rights and interests of housing consumers. The slight change in the central bank's caliber immediately aroused concern.

Previously, in order to prevent real estate financial risks, the central bank announced the implementation of a centralized real estate credit management system on the last day of 2020. There are "red lines" for the proportion of bank real estate loans and personal housing loans of different sizes, which will be implemented from January 1, 2021. As a result, bank real estate loans have been tightened across the board this year, and the cash flow of real estate developers has suffered unprecedented challenges.

Since this year, many highly indebted real estate companies have defaulted on their debts, and real estate stocks have generally continued to decline.

After the central bank issued its statement, the A-share real estate sector rose sharply on September 28. Vanke A closed up 6.41, Jinke rose 9.43, Gemdale Group rose 7.69, and Poly Development rose 5.58.

Yicai Commentary: The signal released by the central bank caused huge fluctuations in market sentiment.

Credit tightening is regarded as the most effective and severe measure to combat the overheating of the property market, and has had an immediate impact on the development trend of real estate this year. The central bank's new formulation is a rare signal of goodwill and a glimmer of hope for the struggling real estate companies. At the same time, the reasonable rights of some home buyers who have been accidentally injured by regulation will be further protected.

According to statistics, personal housing credit business accounts for nearly 20% of commercial bank loans, and about 76% of the loans to the residential sector go to the real estate market. However, due to the tightening of credit this year, some bank quotas have been exhausted in advance. After normal home purchase contracts are signed online, credit progress is infinitely delayed, and some banks even directly reject home buyers. At the same time, due to the pressure on the cash flow of real estate companies, a number of real estate projects are facing the risk of unfinishment. Judging from the latest statement of the central bank, this problem will be gradually resolved, and the legitimate rights and interests of mortgage buyers will be protected.

Fusheng International Holding Group Co., Ltd., which has been suspended from trading for nearly half a year and is deeply in crisis, plans to resume trading

On September 28, Fusheng International Holdings Group Co., Ltd., which has been suspended from trading for nearly half a year, issued the latest announcement.

The announcement states that Fusheng International has published its 2020 annual results on July 9, 2021, its 2020 annual report on July 19, and its 2020 annual report on August 27 and September 3 respectively. The interim results announcement and report for the six months ended June 30, 2021 were published on the same day. The Hong Kong Stock Exchange is currently considering the resumption report submitted by the company.

On July 22, Fusheng International submitted a resumption report to the Stock Exchange, and the resumption report included the actions taken by the company to remedy the matters that led to its suspension of trading to prove that the company had met the resumption guidelines. All resumption conditions stated. In the resumption report, Fusheng International requested the Stock Exchange to allow the company's shares to resume trading on the Stock Exchange.

Yicai Comments: Due to the "difficulty" of the annual report, at the end of March this year, Fusheng International announced that it would temporarily suspend trading. As a result, it has been suspended for half a year.

Fusheng International’s parent company, Fusheng Group, has been in debt crisis for two years. The delayed 2020 annual report of Fusheng International shows that this listed company under Fusheng not only suffered a sharp drop in revenue, but also had a net profit attributable to shareholders of -1.3 billion yuan, and it also had a debt default of 2 billion yuan. The latest 2021 interim report shows that Fusheng International continued to lose 165 million yuan in the first half of the year.

Fusheng was the first real estate "dark horse" to fall. Recently, another "dark horse", Xinli Holdings, has also suspended trading, and it is also unclear when it will resume trading. The "dark horses" fell one after another after running wildly. This may be the price of blindly increasing leverage for expansion.