Real estate infrastructure capital ratios fall to a new round of stimulus

Wang Shifeng Most of the industry's minimum capital ratio has been cut by 5%-10%, guaranteed housing and ordinary commodity housing projects have been lowered 15% after waiting nearly 1 months, fixed Assets investment Project Capital ratio adjustment scheme was announced last night. The minimum capital ratio for most industries has been cut by 5%-10%, with the highest "affordable housing and general merchandise housing projects" down 15%.　　For the local governments and real estate companies that have already stretched their money, this is a timely relief. Prior to April 29, the State Council executive Meeting decided to adjust the capital ratio of fixed assets investment projects.　　However, the specific figures have not been published since.　　Capital is a non-debt capital relative to bank credit, the bank in the provision of credit requires project investors to provide full project capital to issue credit, so the impact of capital ratio on investment, similar to the "statutory reserve requirements ratio" on the impact of credit expansion.　　The threshold of investment has fallen from the notice of the adjustment of capital ratio issued by the State Council yesterday, it is not hard to find that the central government, while stimulating the economy, is still insisting on the policy orientation of maintaining pressure and economic restructuring. In particular, transportation and large infrastructure projects are the main beneficiaries of this adjustment.　　The minimum capital ratio of railways, highways and urban rail transit projects was lowered from the original 35% to 25%; the minimum capital ratio for the port, coastal and inland navigation projects was lowered to 30%, and the postal, information and potash projects were lowered. The adjustment range of real estate project is also very obvious.　　2004 macro-control, real estate development projects (excluding affordable housing projects) capital ratio has increased from 20% to 35% and above, and in this adjustment, the protection of housing and ordinary commodity housing projects, the minimum capital ratio of 20%, other real estate development projects, the minimum capital ratio of 30%. But to belong to "two high capital" (highly polluting, high energy consumption and resources of calcium carbide, ferroalloy, caustic soda, coke, yellow phosphorus and under excess pressure of the corn deep-processing projects, the minimum capital ratio is raised to 30%, electrolytic Aluminum project's minimum capital ratio from the original 35% to the same as the steel project 40%.　　Iron and steel, fertilizers (except potash) and other items remain unchanged. Called "A new round of stimulus" China's earliest implementation of capital ratios began in 1996, followed by the 2004 macro-control in the steel, cement, electrolytic aluminum and some real estate development projects continue to improve.　　In the current wave of investment-driven economies, the previous capital ratios have been a threshold for local governments eager to invest in stimulating the economy but "shy". The audit of 4 trillion investment projects announced by the Audit Office recently showed that as at the end of March 2009, the audit focused on 18 provinces (districts, municipalities) 335 new investment projects, the total capital in place rate of 64.03%, of which the central budget investment funds in place of the rate of 94.01%, theSide supporting funds in place rate of 47.98%, the shortage of funds has restricted the progress of investment projects. To speed up the progress of investment, Mu Hong, deputy director of the National Development and Reform Commission, said yesterday that April this year, the state also issued an emergency to implement local investment and speed up the construction progress of the Ming Telegram, the local departments to do a good job implementation.　　The current reduction of capital ratios and the issuance of local debt have brought real support to local finance.　　In an interview with reporters, Societe Generale Capital Operations Center chief economist Lu County, said that according to their calculations, the total project capital ratio of 1% per cent reduction, can save 170 billion yuan capital investment for local projects, save 220 billion yuan capital investment for the whole society. "The reduction in capital ratios, called the ' new stimulus package ', is not an option, and is expected to spur a relatively robust growth in bank lending over the next few months."　　Lu Commissar said.　　Real estate investment to loosen up on the impact of the reduction in capital ratio on the real estate industry, the industry said cautious optimism. Zhongyuan Real Estate managing director Li Wenjie to CBN, said the lower capital ratio will make real estate reinvestment threshold lower.　　But from 2008 to now, despite the rapid growth of credit, the bank's credit for real estate is very cautious, the real estate sector-wide financial tension has not been fundamentally improved. Sales in the real estate market have indeed shown signs of warming this year. January-April, the National commercial housing sales area of 176.2545 million square meters, an increase of 17.5%. Commercial housing sales of 799.592 billion yuan, a large increase of 35.4%. At the same time, 70 large and medium cities housing Sales price index is also warmer.　　However, Li Wenjie prompted that real estate sales in the specific project is actually "28 phenomenon", is still a small number of real estate developers to obtain more sales, small and medium-sized real estate sales benefit not much. "The current real estate development in investment, land and actual construction area on the growth rate is not ideal, this time the capital loosening will enable more developers to implement project development, the economic recovery in the year will also have a boost." "Li Wenjie said.