The capital flow of housing stocks such as Longhu has been well received by Moody's
Under the continuous strict control of the domestic property market after years of adjustment, recently, more and more housing enterprises have chosen to promote "grabbing cash" to save themselves, and domestic well-known housing giants such as Longhu, China Shipping and China Resources are also among them. The large-scale promotion of real estate enterprises has caused some owners' dissatisfaction, and even disputes in Beijing, Shanghai, Hangzhou and other places have been well received by international rating agencies.
on October 24th, Moody's published a research report on the liquidity of 29 domestic real estate developers to assess their ability to face challenges in the next 12 months. Moody's said in the report that under the analysis of basic scenarios and high-pressure scenarios, the top five domestic real estate stocks with the strongest liquidity are China Overseas, China Resources Land, Fangxing Real Estate, Agile and Longhu Real Estate. Among them, Longhu Real Estate was rated as "Ba2" by Moody's due to its abundant cash on hand, and its prospect was "stable". Moody's believes that Longhu Real Estate has sufficient liquidity to cope with any market environment, whether in a normal business environment or in a business environment with large financing restrictions in the Mainland.
A securities market analyst in Hong Kong also said that Longhu Real Estate is in a sound financial position, with cash on hand of about RMB 12.6 billion, of which only RMB 411 million is restricted cash, so its own cash flow is very abundant. In terms of repayment rate, the Group has recovered RMB 17 billion of the RMB 18.3 billion sold in the first half of this year, with a repayment rate as high as 93.4%. The analyst expects that although the whole industry will face a lower payment rate in the second half of the year than in the first half, it is expected that Longhu's annual payment rate will reach 81%.
In this regard, industry experts agree that since this year, developers' traditional financing channels, such as bank loans, capital market financing and real estate trust, have been restricted. The more abundant the capital flow, the more calmly we can face the still severe market environment in the coming year. Therefore, it is the only way for major developers to reduce prices and promote "grabbing cash", which is also the general trend.
As for the recent frequent disputes over returning a house, experts pointed out that since it is a commercial housing market, it is the proper meaning in the title to assume sole responsibility for the ups and downs. Only the vigorous development of the domestic real estate market in recent years has made buyers only see the potential of maintaining and increasing the value of real estate, forgetting the commodity attributes of commercial housing itself, and buyers should rationally face the price reduction and promotion behavior of developers.