Vanke's first should it change its tactics, "alluding to the" plight of the funds rate
Posted on Feb-29-2008· by china investor
SPECIAL OFFERS properties while simultaneously with the added liquidity for the promotion of projects, one is added liquidity, Vanke's every move will touch the market, and this is the major show of the current real estate enterprises are facing financial difficulties.
So far in December last year, Vanke in Guangzhou, Shenzhen, Chengdu, Wuhan, Shanghai, and other cities have adopted "prices" promotions, and many new Open availability are lower than neighboring prices 15% to 30% of the low-priced sale Many of the old flats availability while the remaining 95% sale such as the form of "stockpile." Vanke with the words, it is in line with Vanke a "rapid turnover" strategy.
And yesterday, Vanke also announced that additional public last year, there will be special fund will not invest 984.56 million yuan temporarily to real estate projects, the company intended to be used, which does not add more than 980 million yuan of liquidity, and thus save Finance costs about 28.665 million yuan. In this regard, there are the insiders, Vanke adjustment fund-raising purposes is to demonstrate its intention to slow down the progress of real estate development.
Whether sales or financial strategy adjustment, the industry believe that with the market situation Vanke had the same strain of the judgement, Vanke's chairman Wang on many public occasions he has not hid his face from the rapid increases in the property market to the rational adjustment "On the inflection point." At the same time, some developers are moving crashed, "follow suit" promotion; another part of the Wang did not support the "inflection point" and are none of Vanke's still wait and see.
It must be pointed out that, although the developers attitude "divide", but it is undeniable that the tight monetary policy to continue to market conditions and the situation remains in the doldrums, increasing the pressure on the capital developers must make a choice.
China Real Estate Development Research Institute deputy director of the Institute Yanggongxu believes that Vanke promotions main purpose is to return funds because Vanke pattern of development is "running quantity" of the cash flow in high demand, and in the bank loans and capital markets obviously tight circumstances, Vanke Days sales outstanding on the expectations will increase. Condominiums real estate Xuejianxiong director of the Research Center also believes that tension in the capital and lack of financing circumstances, take money from the market is the only way, more developers need to return the funds will be "replicated" Vanke, a discount promote sales.
Developers of the funds is not optimistic. Recently, the central bank vice governor Yi made it clear that this year the central bank will not tight monetary policy any wavering. Earlier, this newspaper has also reported that the banks subject to quarter of this year, reported the loan amount, and now on to the more stringent monitoring of credit for the unit invested. With the Shanghai branch of the state-owned banks responsible person said that the bank had already spent in January all of the credit line, coupled with more banks now stand on the implementation of the most stringent vetting of credit, it seems that future developers will be bound to have "very dead ugly. "
Standard & Poor's yesterday also reported that almost all enterprises in the mainland this year, faces a severe test of the market operating conditions, "If the market environment does not improve, enterprises will be a drying up of liquidity, some developers will be difficult to maintain the growth momentum, and affected counterparts, many small developers with limited financial resources will be eliminated. "(Lee and Yu)
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