Developers want price hike to ease cash crisis
The Guangdong Real Estate Chamber of Commerce has urged the province to lift restrictions on falling house prices so developers can speed up sales to boost liquidity, mainland financial media outlet Caixin reported.
Some developers want to make money by selling homes in their inventories in certain third- and fourth-tier cities at discounted prices, but many local governments have set price floors, which means they are unable to get more buyers by reducing prices, Caixin quoted in a document. submitted by the chamber.
Many private real estate companies are now unable to borrow from banks, and there really isn’t much way out of the liquidity crunch except by selling more apartments or unloading their assets, he said. -he declares.
When developers negotiate with asset management companies or state-owned companies on asset disposal, buyers usually only consider assets in Beijing, Guangzhou and Shenzhen, and the terms of acquisition are quite harsh, a he declared.
The prices offered by the public companies could even be much lower than the sums invested by the companies, “which means that the homebuilders would have little funds after the loan repayment and taxes, and that would not help solve their own liquidity difficulties.”
“If public companies can acquire high-quality assets from private companies at low prices, why can’t ordinary people buy residential properties at low prices?”
He then suggests that regulators introduce policies to guide public companies in negotiating prices with reasonable expectations in asset acquisitions, and cities with price controls should relax limits based on the actual situation of the market. market, to allow real estate companies to offer reasonable price reductions and help themselves. of troubles.
Hong Kong’s future lies in three main directions – financial technology, seeking opportunities in the mainland market and green finance, said Eddie Yue Wai-man, chief executive of the Hong Kong Monetary Authority in a statement. interview.
The financial center has grown rapidly in the quarter century since the handover, Yue said, and its role as a bridge between the mainland and global capital continues to be a top priority over the three to five coming years.
As for the banking system, assets of the special administrative region increased from about HK$8.7 trillion in July 1997 to about HK$27 trillion in April, Yue said, marking an increase of about 2.1 times.
In the capital market, its market capitalization increased sevenfold to about HK$38 trillion last month from HK$4.6 trillion in July 1997, Yue noted.
The total annual issuance of the Hong Kong bond market, which was less than 20 billion US dollars (156 billion HK dollars) in 1997, has increased more than 19 times to reach about 400 billion US dollars the last year.
In terms of total assets, Hong Kong’s assets under management have increased ninefold, from around HK$3.5 trillion at the end of 1999 to HK$35 trillion at the end of 2020.
Hong Kong is also the largest private banking center after Switzerland, according to Yue.
Looking ahead, Yue said, fintech, finding opportunities in the mainland market and green finance are the three main areas that can be researched to enhance Hong Kong’s role as an international financial center.
In terms of financial technology, Hong Kong will focus on big projects – including the use of central bank digital currency, the money markets central unit, a system providing clearing and settlement facilities for securities receivables and the exchange of commercial data, which will allow a more efficient flow of information in the banking system.
The HKMA, Yue said, will promote the commercialization and upgrading of the CMU, with the aim of making it an international obligation settlement platform.
As for the opportunities on the mainland, Yue believes that Hong Kong will continue to play the role of the yuan’s offshore center in the coming years, saying that there is still much to be done to improve the international use of the yuan, which who can be promoted. expanding the range of yuan-denominated products and strengthening infrastructure.
In terms of green finance, he said Hong Kong has the greatest potential for green finance, with $57 billion of green and sustainable debt financing issued in the city last year, a fourfold increase from barely a year ago.