On August 5, according to Dahecai Cube, the General Office of the Zhengzhou Municipal People's Government has recently issued the "Zhengzhou Real Estate Relief Fund Establishment and Operation Plan" (hereinafter referred to as the "Plan"), which was issued by the Central City A special real estate relief fund was established under the fund, with a tentative scale of 10 billion yuan, aiming to "try our best to solve the urgent difficulties of real estate companies' capital chain breaks."

One project, one sub-fund

According to the contents of the "Plan" reported by Dahe News, the Zhengzhou Real Estate Relief Fund will be used to "try to solve the urgent difficulties of the break of the capital chain of real estate enterprises, and alleviate the outstanding social problems and possible systemic problems caused by the suspension of current real estate projects and the suspension of monthly mortgage payments." to reduce financial risks and boost market confidence.”

The Zhengzhou Real Estate Relief Fund is a special relief fund established under the Central City Fund in accordance with the principle of “government guidance, multi-level participation, and market-oriented operation”. It is tentatively set at 10 billion yuan and will be operated in the form of a parent-child fund. The relevant development zones, districts, counties (cities) will attract different types of social capital to jointly invest in the establishment of sub-funds based on the relief projects. The funds will be determined based on the project and sub-fund establishment status. The installment is in place.

The "Daily Economic News" reporter noticed that in February 2018, the Zhengzhou Municipal Government announced that it had decided to establish the Zhengzhou National Central City Industrial Development Fund Management Committee to strengthen the leadership of the Zhengzhou National Central City Industrial Development Fund. . Zhengzhou National Central City Industrial Development Fund is managed by a professional fund management company, which is responsible for project collection, industry research, due diligence, risk warning, post-investment management, etc., and establishes project pre-declaration, project reserve selection, policy information communication, and investment dynamics. Feedback, project early warning and department linkage working mechanism.

The Fund Management Committee is the highest decision-making body of the Zhengzhou National Central City Industrial Development Fund. It is responsible for reviewing the fund’s investment areas, sub-fund establishment plans, arrangements for government profit-sharing measures, risk prevention and control mechanisms, exit channels, and fund performance assessments. and other major matters, and will not interfere with the daily operation and management of the fund.

Qixinbao shows that Zhengzhou National Central City Industrial Development Fund Co., Ltd. was established on September 20, 2019. The major shareholder is Zhengzhou Zhongrongchuang Industrial Investment Co., Ltd., with a current shareholding ratio of 65%. , after the equity penetration, it is suspected that the actual controller is the Zhengzhou Municipal Finance Bureau.

Image source: Qixinbao

The special relief fund focuses on guiding and encouraging social capital such as central enterprises and provincial state-owned enterprises, as well as municipal and district-level state-owned investment and financing companies above AA and other entities, in a market-oriented and legal manner, participate in the revitalization of existing real estate projects in the city whose future sales revenue can cover project investment, relieve the short-term liquidity difficulties of real estate companies, and use the revitalization funds specifically for distressed real estate companies The problem real estate project solves the problem of suspension of construction and monthly mortgage payment that is of concern to some society.

In terms of operation, it is established by the special relief fund, urban and municipal level state-owned companies, social capital (including but not limited to central enterprises, provincial state-owned enterprises, construction enterprises, asset management companies, financial institutions), etc. As the implementation entity, the sub-fund shall, in principle, contribute no more than 30% of the capital of the special relief fund. The sub-fund hires a third party to conduct a due diligence assessment of the project to be revitalized, and determines the revitalization method and price based on the net assets of the project; the revitalization funds are raised through the sub-fund’s own funds or financing methods, of which the investment from self-owned funds shall in principle not exceed 40 %, and the remaining funds are raised by actively seeking merger and acquisition loans from financial institutions and other means to raise low-cost funds.

What’s more important is that “the sub-fund implements fully closed management of the project, gradually recovers the investment according to the sales progress, and withdraws one after another; the revitalization funds are specially used for the problem properties of distressed real estate companies.”

Each development zone, district, county (city), together with the leading real estate companies in the area, will jointly screen the existing projects in the area that meet the revitalization conditions, and connect them with all levels in accordance with the "one project, one sub-fund" approach. State-owned enterprises and various social capitals formulate operation plans for the establishment of sub-funds.

As of press time, "Daily Economic News" reporters have not found relevant documents on the official website of the Zhengzhou Municipal People's Government, and there is no relevant information on the Zhengzhou citizen hotline.

However, Zhengzhou real estate industry insiders confirmed the authenticity of the "Plan" to reporters via WeChat on August 6, saying that the policy does exist.

Continue to improve market confidence

The above-mentioned people have a very positive attitude towards the real estate bailout fund: "This is a good policy. Many developers have exposed some problems recently. Generally speaking, cash flow is still tight. The current situation is that many home buyers are afraid of buying a house for fear of not being able to successfully hand over the house. If these suspended projects are successfully resolved, the confidence of the real estate market will definitely be further improved."

" The main problem facing real estate companies now is liquidity. Not only has the financing port been tightened, but the sales scale of the Zhengzhou property market has also dropped a lot since 2022, which has put real pressure on the liquidity of real estate companies."

"This time. Bailout funds, on the one hand, policy funds can enter most unfinished projects through bailout funds to solve a series of problems and enhance market confidence; on the other hand, developers do not receive direct financing, so there are no developers left. If the boss blindly continues to expand operations, there is a risk that liabilities will rise instead of falling. "This is a good policy for the Zhengzhou real estate market, but it remains to be seen how it will be implemented," the person told WeChat. reporter.

Recently, Zhengzhou has introduced a number of policies to enhance confidence in the real estate market.

On July 19, Zhengzhou Real Estate Group and Henan Asset stated that they would set up a special work team to jointly establish the Zhengzhou Real Estate Relief Fund to participate in the revitalization of problematic properties through asset disposal, resource integration, restructuring consulting, etc. , assistance to difficult housing companies and other relief work.

On the evening of July 26, market news said that Zhengzhou had compiled statistics on "the voluntary withdrawal of projects by leading real estate companies", focusing on key projects such as Jianye, Xinyuan, Kangqiao, Shimao, Greenland, Zhengshang, and Sunac. Enterprise projects are supported by four exit modes: unified loans and repayments for shed renovation, mergers and acquisitions, bankruptcy and reorganization, and affordable housing leasing.

On June 20, Zhengzhou City stated that it would implement room ticket resettlement in the renovation of shantytowns, stipulating that "the room ticket holding period shall be calculated from the date of issuance of the room ticket, and shall not exceed 12 months." , the expropriated person should purchase a house and pay within the validity period of the room ticket." Experts believe that this policy has the function of underpinning the market, is conducive to destocking, and boosts overall confidence in the real estate market.

Earlier on March 1, Zhengzhou City released 18 real estate market relief policies, ranging from supporting reasonable housing demand, improving housing supply, increasing credit financing support, promoting the construction and transformation of resettlement housing, and optimizing The real estate market environment and other aspects have been adjusted. Zhengzhou’s new policy is also considered by the industry to be the most powerful property market bailout policy since 2022.

Judging from market reaction, the overall real estate market sales in Zhengzhou improved in June, and even doubled.

According to data from the Zhengzhou Municipal Housing Security and Real Estate Administration Bureau, in June the city’s commercial housing sales in Zhengzhou were 11,428 units (units) and the sales area was 1.449 million square meters, while the data in May was 6,066 commercial housing units (units). ), with a sales area of ??728,000 square meters.

In June, 7,190 second-hand houses were sold in Zhengzhou, with a transaction area of ??776,900 square meters. In May, 3,478 second-hand houses were sold in Zhengzhou, with a transaction area of ??776,900 square meters. The area is 372,500 square meters.