[Policy: Nationwide]On November 27, the State Council issued the Opinion, putting forward policies related to the strengthening of protection to the property rights of all kinds of ownership and the study on the legal arrangement for the renewal of the use right to land including residential construction land after its maturity date. The Opinion came as the top-level design policy concerning property rights protection released under the name of the central government for the first time.
[Policy: Nationwide]On November 28, the newest Opinion was released by the State Council. As the paper puts forward, in order to promote the quality and capacity strategy in terms of service and consumption of the happiness industry, it is necessary to support to invest more social capital in such key fields as tourism, culture, sports, health, elderly care and education and training.
[Policy: Nationwide] As for the recent rumor in the market that some branches of the Central Bank ordered a part of commercial banks under their jurisdiction to suspend issuing personal housing mortgage loans, the People’s Bank of China said on November 29 that relevant information was not true and the Central Bank had never ordered any commercial bank to cease issuing personal housing loans.
[Policy: Jinan]On November 29, for the information widely spread that banks in Jinan had comprehensively suspended the business of housing loans, the Shandong Banking Regulatory Bureau responded that so far the China Banking Regulatory Commission and the Shandong Banking Regulatory Bureau had never issued any policy requiring the banking industry of Jinan City to comprehensively suspend the housing loan business.
[Policy: Xiamen]On November 23, the Xiamen Municipal Bureau of Land, Resources and Housing Administration released an announcement that it decided to recover the transfer of land use right of Plot H2016P02, H2016P03 and T2016P023, and cancel and adjust the manner in the previous announcement into transfer through auction by “setting an upper limit to the land price, bidding in the area of public rental housing equipped” based on the transfer manner of the three plots, and adjusted the auction date to December 14.
[Policy: Shanghai]On November 28, the Shanghai Municipal Commission of Housing and Urban-Rural Development Management released that starting from November 29, 2016, for first-time home buyers who apply for commercial loans, the minimum down payment will be 35 percent. Those who already own a house or who own no house but a housing loan in Shanghai must make at least a 50-percent down payment for a self-used ordinary house and pay a down payment of at least 70 percent for a self-used non-ordinary house when applying for commercial loans.
[Policy: Guangzhou]On November 25, the Guangzhou Municipal Land Resources and Housing Administration Bureau announced that according to national, provincial and municipal requirements for strengthening regulation and control of the real estate sector, Guangzhou City will actively increase land supply. As per Guangzhou’s three-year rolling plan for residential land supply from 2017 to 2019, in the next three years, Guangzhou City will supply 1,551.9011 hectares of residential land.
[Policy: Guangzhou] On November 28, the Overall Planning of Urban Renewal for Guangzhou (2015-2020) was passed by the executive meeting of the People’s Government of Guangzhou Municipality and put into effect recently. It refers that, by 2020, Guangzhou is planned to complete the urban renewal of areas covering 42-50 km2 and fulfill the transformation and renovation of 943 old and dilapidated communities with ageing infrastructure and poor environment within five years.
[Policy: Tianjin]On November 25, Tianjin released the Notice (“Three Articles of Tianjin” for short). It points out that the whole Tianjin shall strengthen planning and management of the land supply, and to prevent any abnormal fluctuation of the land price, such measures as setting reasonable upper limit of the land price shall be taken to the plot with higher market expectation to guide development enterprises in reasonable bidding.
[Policy: Hunan]According to the news on December 1, the Hunan Office of China Banking Regulatory Commission recently released a document in which the policy related to house-purchase down payment, down payment for a second ordinary house and loan interest rate is required to be implemented strictly and all banks are encouraged to execute the strict policy of their head offices on the down payment of the first and second ordinary house and the interest rate.
Real Estate Market
[Market: Nationwide] According to the latest report of the Chinese Academy of Social Science on November 30, the risk of overvaluing of the housing exists among 35 large and medium-sized cities nationwide, particularly in Shenzhen, Xiamen, Shanghai, Beijing, Nanjing, Tianjin, Zhengzhou, Hefei, Shijiazhuang and Fuzhou. China’s real estate market in 2017 is estimated to go through a short-term adjustment and smooth slowdown on the whole.
[Market: Nationwide]From the latest Ranking List of Sales of Chinese Real Estate Enterprises in January-November 2016 released by CRIC, the threshold of the top 10 had reached 100 billion, among which Evergrande continued to take the first place while Country Garden ranked the third with the sales amount close to 300 billion.
Real Estate Enterprise
[Enterprise: Country Garden]As reported by Wenhui Daily on November 24, Country Garden early proposed to list its subordinate education sector separated and Zhu Jianmin, its Vice President, pointed out yesterday (Nov. 23) that the company intended to list the sector in America after preliminary consideration. Country Garden now owns 47 schools found in Beijing, Shanghai and provincial capitals as the community supporting facilities of its properties since the demand to international education is booming in each province, said Zhu Jianmin.
[Enterprise: China Enterprise]From the Announcement of China Enterprise on November 23, it will pay for the deal at an initial price of RMB 18.522 billion Yuan by issuing shares to real estate groups and paying cash. In order to raise supporting funds, six investors like China Resources and Ping An Real Estate are introduced as its shareholders, and the reorganization of China Resources undoubtedly becomes the new sample for mixed ownership economy reform of state-owned enterprises in Shanghai.
[Enterprise: HNA]On November 23, the investment fair of XiangJiang New Area of Hunan Province was held in Hong Kong, and projects of RMB 34.5 billion Yuan were signed, among which RMB 10 billion Yuan from HNA Group will be used to establish the demonstration area of aviation sports culture industrial park in the Central Region located at Moon Island Culture Travel Town.
[Enterprise: Future Land] On November 23, Future Land announced that its board meeting held on November 22 had deliberated and passedthe Proposal on the First Grant of Restricted Shares to Incentive Objects by Company and consented to grant restricted shares to incentive objects. In total, 38,500,000 restricted shares at RMB 6.9 Yuan per share were granted to 58 people on November 22.
[Enterprise: Red Star Property]On November 23, Shanghai Red Star Macalline Property signed cooperation agreement with the Administration Committee of Lanzhou National Hi-Tech Industrial Development Zone to invest and establish the project of Red Star International Plaza with about RMB 8 billion Yuan totally. The construction involves in multiple types such as Red Star Macalline commercial mall, supporting business streets and high-end residence covering an area of 1,000 mu with a floorage area of 2,000,000 m2.
[Enterprise: Jinmao] On the evening of November 23, the opening ceremony of Haishu Jinmao Residence, the third property developed by China Jinmao in Ningbo was held officially. As disclosed, there were more than 300 houses supplied for the first sale, including 95-139 m2 high-rise buildings with spacious vision and 190-235 m2 waterfront joint-row villas, attracting thousands of clients to the site. That day saw a total sale of 272 houses and a gross turnover of RMB 540 million Yuan.
[Enterprise: Greentown China]On November 28, Zhejiang Lvjiu Real Estate Co., Ltd. (Greentown Group and Wharf Group each holding its 50% shares) purchased this plot for RMB 1.736 billion Yuan totally with public rental housing equipped of 69,300 m2, equivalent to RMB 16,632 Yuan/m2 as the highest floor price in Foshan.
[Enterprise: Sunac China]On November 28, 100% equity of Qingdao Calxon Property Development Limited was successfully transferred at Zhejiang Property & Stock Exchange and Sunac acquired the equity of the company at the price of RMB 3.662 billion Yuan, with a premium price of RMB 2.062 billion compared to the starting price of RMB 1.6 billion Yuan and the premium rate of 128.875%.
[Enterprise: Sunac China] On November 30, Jinke Group said, Sun Hongbin, Chairman of Sunac, bought in 162,304,282 shares in Jinke Stock at the price of RMB 830 million Yuan through its two property management subsidiaries in the secondary market, accounting 3.04% of the total equity of Jinke Stock, while the shares held totally increasing up to 20% so far.
[Enterprise: Longfor Properties]On November 28, LongFor disclosed that it had redeemed senior notes due by 2019 of USD 417 million by November 25 equivalent to 103% of the principal amount.
[Enterprise: Longfor Properties]On November 28, two pieces of commercial land were auctioned in Beijing, among which Changyang plot was acquired by the consortium of LongFor and SHOKAI at the price of RMB 3.78 billion Yuan with the premium rate up to 200% while Gongchen Sub-District plot was promptly secured by CIFI at the base price of RMB 513 million Yuan.
[Enterprise: Yuexiu Property]On November 28, Hangzhou witnessed a land war at the end of the month as the land use right of 12 plots was transferred together. Genbei commercial and residential land was obtained by Yuexiu at the price of RMB 6.01 billion Yuan with the premium rate of 66%, equivalent to RMB 25,787 Yuan/m2, setting a new record of the floor price in this place.
[Enterprise: Yango]On November 29, Yango said that it would purchase the real estate business from Zhongda at RMB 10.469 billion Yuan totally, exceeding 50% of the equity attributed to the owner of its parent company according to the latest audited consolidated financial statement of Yango, and this transaction constituted a major assets restructuring.
[Enterprise: China Merchants Shekou]At the noon of November 29, China Merchants Shekou released its first grant plan for stock option and totally 49,345,000 A-share common stocks of the company are involved in, occupying 0.624% of the total amount of the company’s capital stock. In this plan, the stock option is intended to be used as the equity incentive for employees.
[Enterprise: Wanda Group] On November 30, Wanda Group signed an agreement with Haikou City to establish a brand new Wanda Cultural Tourism City in Haikou City which is the 16th Wanda City invested and constructed by Wanda so far. It’s reported that the project involves the total investment of RMB 50 billion Yuan.
[Enterprise: Evergrande Real Estate] China Evergrande Group declared that on November 29, 2016, Calxon Group, an indirect subsidiary company to it, as the seller concluded an equity transfer agreement with Sunac (Qingdao) Real Estate Company Limited to sell all the stock equity of the target company at the price of RMB 3.662 billion Yuan with an estimated return of about RMB 2.79 billion Yuan.
[Enterprise: Shimao Property] On November 30, Shimao acquired Plot KD4-1 at Hefei State High-tech Industry Development Zone for RMB 3.331 billion Yuan, equivalent to RMB 16,158.92 Yuan/m2, with the premium rate of 169.32%. The foresaid plot came to be the largest one released by Hefei State High-tech Industry Development Zone this year.
[Enterprise: Shimao Property] On December 1, the land market in Jinan saw the transfer of 7 pieces of land at RMB 3.27 billion Yuan totally and Shimao Property purchased Plots A-1/A-2/B at the north side of North Gongye Road, Licheng District, Jinan City at the price of RMB 1.82 billion Yuan with the premium rate of 166%.
[Enterprise: China South City] On November 29, China South City declared signing strategic cooperation agreement with JD and establishing long-term cooperative relationship in such fields as B2B e-commerce, warehouse logistics and financial services. China South City expected to promote its e-commerce development by means of the online technical advantage of JD and its own experience in entity platform operation.
[Enterprise: CR Land] Recently, the People’s Government of Jiangxi Province held a press conference, introducing information concerning the investment cooperation fair in Jiangxi Province by central enterprises. Major projects signed this time include MIXC Complex invested by China Resources Group with RMB 7 billion Yuan at Honggutan New Area of Nanchang, which indicates the formal settlement of MIXC Complex in Nanchang.
[Enterprise: Vanke Real Estate]On December 1, the final result of the transfer of 3 pieces of self-held land with “limited housing price and controlled land price” was published on the official website of Beijing Municipal Bureau of Land and Resources. Vanke purchased Plot 18 at Xibeiwang Town, Haidian District for RMB 5 billion Yuan and the consortium of Vanke and BUCC acquired Plot 19 at Xibeiwang Town, Haidian District for RMB 5.9 billion Yuan.
[Enterprise: Risesun Development]On November 30, Risesun Kanglv, a holding subsidiary of Risesun Development, signed an agreement with the People’s Government of Guanghan, intending to promote the development and construction of Sanxingdui cultural tourism project through strategic cooperation. Risesun said that the project was a significant achievement it had made in the southwest of China, better driving and energizing the development of Kanglv sector.
[Enterprise: Minmetals Land]On November 30, Minmetals Land Limited released an announcement disclosing its positive profit alert and in the first ten months of 2016, the group had acquired about 180% and 260% increase respectively in revenue and net profit by contemporary comparison with the year of 2015.
About Land
[Land: Nationwide] Statistics show that by November 29, the total sales amount of land of cities ranking in top 50 of land sale has reached RMB 2.21 trillion Yuan, with an increase of 35.4% than RMB 1.63 trillion Yuan in the same period of 2015, hitting an all-time high for those cities.
[Land: Quanzhou] On the morning of November 24, an auction related to Plot 2016P07 in Nan’an, a county-level city of Quanzhou, was held. Finally, this plot was acquired by Xiamen Zhaofenghe Investment Co., Ltd. for about RMB 276 million Yuan, equivalent to RMB 14,041.09 Yuan/m2 and with the premium rate up to 887.50%.
[Land: Hefei] On November 28, according to relevant information, Hefei would transfer 13 pieces of land covering a total area of 1,228.14 mu on Nov. 30 and the one-time price quoted for the foresaid land is stipulated to be not more than or equivalent to the maximum local transaction value in history.
[Land: Chongqing]According to the announcement of Chongqing Land Resources and Housing Administration Bureau, until now, Chongqing has intended to supply 11 pieces of R2 residential land or B2 commercial land in December with the starting price of about RMB 5.284 billion Yuan in total.
[Land: Zhuhai] On November 29, Zhuhai released a grant announcement related to the land use rights of numerous state-owned construction plots by listing-for-sale online, and the three plots in Baijiao Town and Pingsha Town, which had been suspended to grant after the release of the new policy for regulating and controlling property industry, were all set with the maximum price and detailed construction requirements for public supporting facilities. In Zhuhai, this is the first time on the grant of use rights of construction land by invitation of tender, auction or listing-for-sale in history.
