China's re-listing of real estate projects facing stranded

The recent continuous slump in the A-share market has made many companies planning to issue refinancing firms to face the embarrassment of lower prices. In particular, real estate companies, since the beginning of April, the plate decline has been nearly 20%, which also led to the application for additional refinancing of the 59 listed companies in 32 share prices below the additional price, accounting for nearly 60%.　　In particular, since this year, 15 new announced plans of listed real estate companies, no exception to the total below the planned additional price.　　Re-issue restructuring faced stranded in these 15 new applications for additional financing of the real estate companies, the Yi Hua real Estate (000150) is related to the major asset reorganization issues caused market concern. March 4, 2010, Yi-wah Real Estate announced its additional plans, in this additional scheme, the Yi-hua real estate to be 7.81 yuan per share of the price to the large shareholder Yi Hua group targeted about 172 million shares, the acquisition of its subsidiaries including Jiedong, Meizhou, Xiangtan and Shantou Yi East and other 4 real estate companies 100% Equity, After the completion of the acquisition can increase the land reserves of nearly 2100 acres.　　and the net amount of assets proposed for this transaction accounted for more than 50% of the total assets of the Ikea property, so it also constituted a major asset reorganization. The 4 project companies on the benchmark day (December 31, 2009), the book value of net assets of 1.1 billion yuan, the estimated value of 1.34 billion yuan, so that the value-added rate of only 22%, in the asset injection category of real estate stocks at a very low level.　　Thus at that time was also favored by a number of institutions. However, with the state of the property market regulation and control policies, the real estate stocks continued to plummet, the price of the proposed property is also announced after the announcement of the plan 1 months after the collapse.　　If the latest closing price (May 13) 6.72 yuan, the current price of Ikea property is already 14% lower than the additional prices. In an interview with the Securities daily, Yi Wah Real Estate Securities representative said: "For this situation, the major shareholders have not yet made any comments on the financing plan, and our proposal for additional programs is still in the CSRC's approval, so there will be no change for the time being." And the company is also very concerned about the price of the two-tier market.　　"And also on May 13, the industry's one of the leading merchants real estate announced in the announcement that the 2009" Company to the specific object of the private issue of shares of the proposal, "the reason is that the stock price continued to drop significantly, far below the adjustment of the additional reserve prices. And with the investment estate announced the cancellation of financing plans, the industry generally believe that there will be a group of real estate listed companies announced the cancellation of financing or change financing options.　　Although the SFC recently denied the suspension of real estate corporate equity financing news, but after all, the existence of land idle and speculation on the behavior of real estate development companies, the regulator has indicated the suspension of approval of its listing, refinancing and major asset restructuring. Some researchers believe that if the stock market continues to slump in the near future, more companies may be forced to extend the refinancing plan or abandon the refinancing plan. Similar to the massive abandonment of refinancing by listed companies in 2008 will recur.　　From this can also be seen, the financing of the reorganization of the Yi-wah real estate, its additional plans to pass really difficult, and in the post price, its financing prospects become blurred. The major shareholder's pledge equity floating deficit additional difficulty realizes besides the additional plan, the Yi Hua real estate also announced on April 27 announced, the company on April 26, 2010 received the company biggest shareholder Yi Hua Enterprise (Group) Limited's notice, the Yi Hua group holds its limited sale condition circulation stock 105,　　640,000 shares (accounting for the company's total share capital of 32.6%) pledged to Huaneng You Trust Ltd.　　In this regard, although the securities representative of the Ikea real Estate said it was not clear the reasons for the large shareholder's pledge, but a broker told reporters that the big shareholder pledge is nothing but to obtain cash, and through this way to obtain cash also indicates that the pledge is in dire need of financial support. Obviously, in the case of large shareholders who have pledged their shares in exchange for cash, it is necessary for the Chinese real estate to be successful in issuing additional shares to major shareholders.　　And from the current performance of the two-tier market, the short-term rebound of 14% of the difficulty is indeed not small.　　And in the case of the short-term opening of the financing gate of the housing enterprise, even if the property reorganization of Yi Hua is successful, it will face a more difficult problem. According to the information previously disclosed by the company, the real estate projects of the 4 real estate project companies are in the preparatory stage of development, they have not been able to generate revenue during the reporting period, and each project company has a certain degree of loss in 2008 and 2009.　　In addition, because 4 of the project companies owned assets mainly for the development of land reserves, so in the short term can not produce benefits. And because of the particularity of the development of real estate industry, real estate development and sales need a lot of capital investment, and the construction cycle is also relatively slow.　　Even if it completes the large-scale acquisition of large shareholder's land reserve, it is uncertain whether the listed company has sufficient funds to carry out the follow-up development after the transaction is completed. Some researchers believe that after the completion of the reorganization, Yi Wah Real estate will have a strong refinancing needs, after all, the assets proposed by the major shareholders of the Yi-Hua property are in the land phase, is expected to start construction after 2010, plus the company itself 2 projects 1200 acres of land is under development, so the company refinancing demand is very strong. But it is clear that the prospect of a huge amount of financing in this year's scenario is tantamount to wishful thinking, raising concerns about how the next step of Ikea's property will emerge from the current refinancing dilemma.