NetEase January 17 hearing on the 17th, Standard & Poor's Ratings Services
in China and Hong Kong real estate held in the conference call, said the overall
outlook for the real estate industry remained stable, but in 2014 the real
estate sales growth will slow. For last year's strong real estate market trends,
S & P believes that strong sales did not translate into financial
optimization, the debt ratio rising housing prices are also increasing industry
risk.
Standard & Poor's expects that in 2014 the average price of real
estate sales rose 5 percrent apartment
shanghaient, sales rose 10%, this judgment is based on the leading role in
GDP growth forecast of 7.4%, and the urbanization strategy for real estate.
Meanwhile, Poole Bei Fu, director of corporate ratings analysis, although
sales on the rise, but the spending of these funds to buy land for housing
prices are also rising, the debt ratio portion of housing prices increasing,
adding billion for housing prices to club say, there was a clear debt to the
scene. Strong corporate sales but did not translate into financial optimization.
It is worth noting that, in similar large-scale housing prices, the Hengda
rating is relatively weak. Bei Fu, this explanation is, Hengda expansion more
radical way, to take place rapidly in 2010, after the shanghai apartmentsecond and third tier
cities in turn, transfers the current strategy ED tier cities, there is no
change in strategy led Hengda showed sustained stability.
In addition, S
& P also noted that the 2014 balance sheet and developer financing or
weaker. 2013 total domestic developers in the overseas market of nearly $ 22
billion financing bonds, compared with 2012 bonds amount to nearly double in
2013 domestic liquidity remained at a healthy level. Many developers use 2013
bond funds in the market cheaper opportunity for the implementation of the debt
coming due to refinance and extend debt maturities. 2014 funds to support
overseas markets may not be as strong, ishanghai apartmentsn part due
to the U.S. quantitative easing policy may gradually withdraw. Global liquidity
will be tight, financing costs may rise.
