Huang Xinwei: Shimao took the lead in “selling”, the first-tier cities also do not want
On January 21, 2022, Shimao Group announced that it transferred its equity of a project company located in the core area of the North Bund of Shanghai to its subsidiary of Shanghai Jiushi at a discount of about 77 percent at a total price of 1.06 billion yuan.Meanwhile, Shimao’s portfolio of assets for sale has included 35 key projects,Among them are Shanghai Shimao Tower, Shanghai Pucheng Community, Shanghai Sheshan Shimao Intercontinental Hotel, Shanghai Sheshan Maoyu Hotel of Choice, Shenzhen Shimao Shenzhen-Hong Kong International Center, Guangzhou Asian Games City, Hangzhou Shimao Smart Gate, tianjin, Changsha, Chongqing, Wuhan, Fuzhou, Nanjing and “Around Beijing” two projects.Most of the products listed in shimao’s “hypermarkets” are local landmarks, covering commercial, office, hotel and some residential areas.Such a large discount behind the sale of assets, is the painstaking 20 years of Shimao Foundation, in three months by a heavy blow KO helplessness.First of all, the three straws that broke the camel’s back.On October 24, 2021, under the background of national concern about real estate tax, a news of “housing uncle selling 93 houses in the same community” in Shanghai flooded social platforms, thus revealing the farce of “Shimao selling house → Shimao withdrawing house”.On November 5, 2021, a news of “Shimao Group and Lujiazui Trust postponed talks” spread like fast online. Shimao Group suffered a “double murder of stocks and bonds”, and the price of several Shimao bonds plummeted by more than 20%.On January 6, 2022, China Credit Trust announced that its capital trust plan was in material breach, and the joint balance compensator behind it was Shimao’s joint-stock company and the project company.Despite the company’s frantic efforts to dispel rumours, the collapse of its reputation has begun.Secondly, sales year-on-year “continuous innovation low”, backyard fire.Although the “false rumors” have been clarified one after another, their impact on the company’s sales is real: In September 2021, contract sales were about 22.58 billion yuan, down 30% year on year;In October 2021, the contract sales volume dropped to 20.34 billion yuan, with a year-on-year decline of 32%.In November 2021, contract sales fell to 16.05 billion yuan, with a year-on-year decline of 49%.In December 2021, after the bank credit eased moderately after the central bank’s “two maintenance” announcement, real estate sales in the fourth quarter showed a recovery or even a tail market, shimao’s contract sales directly plunged to 11.22 billion yuan, with a year-on-year decline of up to 70%.Sales is the logistics of housing enterprises, no sales recovery will not be able to expand to take land, unable to pay due, but also unable to boost confidence in the capital market.Moreover, as can be seen from the volume of goods sold in Shimao, the impact of the epidemic is greater than control.The shimao sale of two characteristics worth noting: 1, the core city defense, including Shanghai, Shenzhen and Guangzhou, once the “safest” city also in the sell-off team behind the first meaning?Is even the first-tier cities also see decline, or the tree falls, the monkeys scattered “not”?Let’s just say that when the waves are big enough, all measures, myths and superstitions, fall apart.2. The assets sold this time are mainly office, hotel and commercial, and the proportion of residential is limited. When the epidemic entered the third year, the above three formats were the industry containers that suffered the biggest impact, so the reason why Shimao hypermarket opened should be that the epidemic caused a larger proportion.Fourth, “Shimao cut off his arms to survive”, what about the other neighbors?On the one hand, it is supported by Evergrande Group’s “building protection” and “39 high-rise buildings in Haihua Island will not be demolished”; on the other hand, Shimao Group’s resolute, hard discount and rapid asset sale seems to be just a strategic decision of each head, but the puffiness of China’s real estate enterprises is just a desperate fight.Indeed, Shimao Group is not the most in debt, the worst in sales and the worst in reputation among Chinese real estate enterprises. Today shimao Group only wants to live for a lifetime. Will there be a warning of the fact that the lips are gone and the teeth are cold?!Those who are still in the central economic conference communique to find confidence of the housing enterprise, but also for the “virtuous cycle” and “pillar industry” and superstitious market reincarnation of the housing enterprise, may not be better than the World MAO, because in the line of shipping prices, the latecomers will face — buyers are not much, the counteroffer can not, the wise for the great.