The high debt rate of China's housing companies is a matter of sooner or later

"The history of the most stringent real estate control New Deal" since the introduction of the property market turnover has been significantly lower, coupled with the imminent introduction of property tax rumors, real estate shares a sharp oscillation. In contrast, the price of the property market is still firm. Industry insiders believe that the housing price is strong, because the real estate company reluctant, the reason to dare to reluctant, is because the housing enterprise "big crocodile" last year, huge sales back support, and the previous financing reserves abundant. But the biggest worry for developers now is: "Not bad money" just belong to the past, now the transaction stagnation led to sales back to the decline, real estate development loans, housing mortgages, trust financing and was fully tightened, in the stock market and then fell below the issuance of the financing plan is "bankrupt", plus a general fall in first quarter earnings, The crisis of the asset chain is simmering.　　Zhangchunzhi, a joint director of China Merchants Securities (Hong Kong), said in an interview with our correspondent that the debt rate of Chinese real estate companies is high, if the turnover continues to fall, developers will be "tight", sales pressure to increase, the sale of the price is sooner or later. Property stocks rebounded, away from the additional price is still far last week, has been a serious oversold of real estate stocks unexpectedly rise, run to win the market 2.7%, Gold Group, Rongsheng Development, Suning Global and so on on May 20, the rise of more than 6%; Vanke, Poly, investment and other major leading the increase also reached or more than 5%, Most people in the industry interpret this as "oversold rebound". Nevertheless, the closing price of China Merchants Real estate on May 20 was 16.42 Yuan, and the company announced in April an additional 20.60 yuan.　　Prior to the May 13, China Merchants Property announced that the board of directors would agree to revoke the private offering of shares. 2009, the housing enterprises to make a pot full, but the listed companies never give up the impulse to circle money. According to Wanguo Industry division, since 2009, a total of 49 real estate listed companies announced the issuance of additional plans, the total amount of funds raised more than 100 billion yuan, did not expect that, as the market for the entire real estate sector expected reversal, there are 32 companies have fallen below the additional price, accounting for more than 60%. No additional issue has been in the "loss price", hoping to raise money in the stock market immediately dystocia. The leading shares of Poly real estate plans to raise additional prices for 17.92 yuan this year, but the May 20 closing price is only 11.16 yuan, still lower than the additional price. The Gold group additional price is 12.40 yuan, May 20 stock price is 6.22 yuan, the equivalent double right price 11.2 yuan, also fell below the additional price. Suning Global plans to issue more than 380 million shares, the additional price of 13.4 yuan, May 20, although the rally nearly 7%, the share price is only 8.75 yuan.　　Shanlan, an investment executive director, said that the time window for refinancing liberalisation could be further postponed and property stocks fell continuously, even as the two-tier market looked at the risk of miscarriage. Not bad money is the past, high debt is the future listed housing companies published in 2009 Annual report shows that 86 housing companies to achieve net profit of 34.715 billion yuan, of which 19 performance year-on-year growth of superOver 100%. Almost all developers seem to claim to be "not bad money". Vanke, Poly, gold, investment, capital, the sea and the world of elegance, such as the top ten benchmark listed real estate companies, the end of last year held the total amount of cash to reach 121.7 billion yuan, which is also the history of the top ten housing companies holding cash most of the time.　　Among them, Vanke held 23 billion yuan in cash, became the "Cash king" in the listed housing enterprises, and the Sino-Sea real estate with 21.2 billion yuan liquidity followed. But another figure is even more alarming: the top ten benchmark housing companies have a total debt of up to 420 billion yuan! Statistics found that the top ten housing companies in the past year's net profit of 26.5 billion yuan. If you divide the total liability of 420 billion dollars by net profit, you get the figure of 15.85.　　That is to say, even if the top ten housing companies are as good as 2009, it will take another 16 years to pay off the debt. Soho Chairman Pan Shiyi recently provided 27 housing companies in 2009 net Debt equity ratio table shows that the top three companies are more than 100% of the highest debt, the "debt champion" Green Green's net debt equity is closer to 160%. High debt is the characteristics of the Greentown has been, in the property market 2007 years, 2008 and 2009, Greentown was considered to "take a lot of high-priced," said Dr. Du Lihong, Tsinghua University, the financial security of the Greentown depends on its success in the next two or three years to achieve sales targets.　　In fact, the real estate market turnover plummeted, the biggest suspense is that most of the housing enterprises can achieve sales targets. A quarter of a change in cash flow alarm the data of the national securities Monitoring show that at the end of the 2010-year period, the pressure of the plate cash flow increased abruptly because of the large increase in the construction area of the listed housing companies. At the end of the quarter, the real estate plate operating activities cash flow net of 41.858 billion yuan, and the end of 2009 real estate sector operating activities cash flow net amount of 47.925 billion yuan. A short period of time, the cash flow has become negative. At the same time, the data also shows that the real estate sector's net debt rate has increased markedly, net debt rate from the end of 2009 to a significant increase of 38.58% to 53.37%.　　As a result of the current public housing enterprises refinancing difficult, real estate sales area growth rate has fallen sharply, so the capital pressure of listed housing enterprises will be significantly increased. Another report, from Minsheng Securities, points out that the time required to inventory will be significantly longer due to falling turnover. BEIJING, Shenzhen, Hangzhou to inventory the time required in more than 100 weeks, Guangzhou, Nanjing, Suzhou to inventory the time required in more than 50 weeks. Experts pointed out that the housing enterprise capital pressure, will lead to real estate development investment growth rate of decline and housing prices downward. Guangdong Provincial Housing Association long Cai Sound analysis that, in this round of adjustment, sooner or later, the price will occur, but the time and scope of the problem. After the deal shrinks, the building can't sell, and it has to break the deadlock. Price reduction is a developer's business, but we should recognize the situation, grasp the relationship between their own and the market, do not make wrong judgments on the situation. Reporter Zhao Asia