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Chinese property developers’ non-banking financing totaled 482.55 billion yuan in the first half of the year, sliding 56.5% from the same period last year, falling by 26.4% from the previous six-month period, according to China Index Academy, one of the largest independent real estate research firms.
In breakdown, onshore bond issuance reached 251.8 billion yuan in the first half, sliding 24.2 billion yuan from a year earlier and accounting for 52.2% of the sector’s total financing. Offshore bond issuance was only 16.9 billion yuan, slumping 91.1% from the same period last year and accounting for 3.5% of their total financing during the period, falling by 13.7 percentage points from a year earlier.
Trust financing totaled 69.5 billion yuan, diving 79.6% from a year earlier and accounting for 14.4% of the total, down 16.3 percentage points from a year ago.
Notably, the developers didn’t issue any bonds in the offshore market in February and May and in the other four months, only quality homebuilders managed to issue offshore bonds.
Due to the government’s supportive policies for the sector, property developers’s financing model has tarted a new cycle, it said.
The sector’s financing via asset-backed securities (ABS) reached 144.4 billion yuan, accounting for 29.9% of the total, rising by 7.8 percentage points from the share in the same period last year, showed the data.
July and August is the second maturities wall for the real estate sector this year, with monthly debt maturities exceeding more than 100 billion yuan, the report said.