FECRMonthly Industry Observation of ChinaApril 23,2023Commercialized building sales recover significantly,as domesticAuthor:Mei Zhijingbond issuance continues to increaseE-mail:research@fecr.com.cn-March 2023 real estate industry observation and bond marketoperation reportSummaryIn terms of sales volumes and prices of commercialized buildings,the floor space of commercialized buildings sold in 30large and medium-sized cities has increased by 43.59%year-on-year in March,close to the average level of the past 10 years.The destocking cycle of commercial housing in the ten major cities continued to shorten.The average price of newly builtresidential buildings in"100 cities"has decreased by 0.07%year-on-year,mainly due to the decline of prices in third-tiercities.In terms of new construction area,the national new housing construction area in March was 105.54 million m2,and declinedby 29.03%year-on-year,remaining at a low level.In terms of policies,according to the 2023 govemment work report,we will continue to prevent systemic risks caused bythe real estate sector.The Ministry of Natural Resources and the China Banking and Insurance Regulatory Commissionjointly issued "the Notice on Coordination of Real Estate Transfer with Mortgage for the Convenience of People andEnterprise".At the local level,Hengshui and Shenyang lowered interest rates on first-home mortgages.The support policiesfor housing purchases have been constantly introduced in various regions,including providing subsidies for housingpurchases,relaxing purchase restrictions,reducing the downpayment ratio of housing loans,increasing the amount ofhousingloans,relaxing the restrictions on the qualification of housing loans,adjust housing provident fund policies,etc.In terms of key real estate companies,the sales amount ofTOP100 real estate companies in March has increased by 24.6%year-on-year.Risesun Development,Myhome Group and Cosmos Group provided guarantees for their subsidiaries;Sixprivate enterprises,including Excellence Group,Galaxy Holdings and Kingkey Group,have established strategic cooperativerelations with ICBC;CCCG Real Estate signed a strategic cooperation agreement with China CITIC Bank Beijing Branch.In terms of bond issuance and maturity,the real estate industry has issued 77.522 billion yuan bonds,repaid 98.704 billionyuan bonds in March and has received-21.182 billion yuan of net financing through bond market.In terms of credit events and spreads,3 bonds has defaulted and 13 bonds have been extended in March.No credit ratingsfor entities and bonds were downgraded.On March 27th,the bond credit spread (median)of the real estate industry decreasedby 11.59BP from the end of the previous month.Looking ahead,on the demand side,since economic activities and real estate market demand are recovering,and localgovernments continue to actively introduce housing support policies,the demand for new commercial housing will continueChoose FECR,Choose Trust请务必阅读正文后的免黄声明