Wisdom Financial APP learned that according to monitoring data, in October 2024, the total amount of real estate corporate bonds financing was 28.97 billion yuan, with a year-on-year increase of 3.2%, showing two consecutive months of positive growth under the influence of the low base in the previous year, and a 32.4% decrease month-on-month. The average interest rate for industry bonds financing was 2.98%, a year-on-year decrease of 0.51 percentage points, and a month-on-month decrease of 0.08 percentage points.

Financing Structure: The volume of credit bond issuances increased significantly year-on-year, while the volume of ABS issuances decreased by 20% year-on-year.

Looking at the financing structure, in October, the real estate industry's credit bond financing was 21.7 billion yuan, with a year-on-year increase of 44.9%, a month-on-month increase of 27.7%, accounting for 74.9%; ABS financing was 7.27 billion yuan, a year-on-year decrease of 24.9%, a month-on-month decrease of 71.9%, accounting for 25.1%.

From January to October 2024, the total amount of real estate industry bonds financing was 442 billion yuan, a year-on-year decrease of 25.6%, which narrowed compared to the previous month. Among them, credit bond financing was 277.81 billion yuan, a year-on-year decrease of 23.8%, accounting for 62.9%; overseas bond issuances amounted to 6.7 billion yuan, a year-on-year decrease of 62.5%, accounting for 1.5%; ABS financing was 157.49 billion yuan, a year-on-year decrease of 25.5%, accounting for 35.6%.

Due to the impact of the low base in the previous year, the total volume of credit bond issuances in October increased slightly year-on-year, with positive growth for two consecutive months. This month saw no bond issuances by private real estate companies. This month, state-owned enterprises including China Resources Land (01109), Poly Developments (600048.SH), and China Communications Construction (000736.SZ) actively issued credit bonds, with total issuances of 3 billion yuan, 3 billion yuan, and 2 billion yuan respectively. Short-term financing bonds accounted for 33.9% this month, leading to a decrease in the average issuance maturity of credit bonds to 2.53 years.

The amount of ABS issuances decreased significantly both year-on-year and month-on-month, with a total issuance volume of 7.27 billion yuan. Among them, REITs-like products had the largest issuance scale at 37.4%; followed by CMBS/CMBN at 36.9%; and supply chain ABS at 25.8%.

Overall, this month, ABS products continued to be mainly supported by underlying assets of high quality, and ABS channels remained open to enterprises holding high-quality assets. This month, the first public offering of REITs in a private enterprise park in China was successful, with China Minsheng United East Innovation REIT achieving a net subscription amount of 1.617 billion yuan. The underlying assets of China Minsheng United East Innovation REIT are a total of three new standard industrial factory property parks in Daxing District, Shunyi District, and Fangshan District in Beijing, with a total construction area of 0.1984 million square meters. The infrastructure assets are all located in Beijing Centergate Technologies (Zhongguancun) National Independent Innovation Demonstration Zone, targeting small and medium-sized production and technology-oriented enterprises in strategic emerging industries. The successful launch of the first public offering of REITs in a private enterprise park helped further expand the scale of public offering REITs, while also opening up asset securitization to many private enterprise parks, helping these companies reduce financing costs, broaden financing channels, and revitalize existing assets.

Financing Interest Rate: Bond financing interest rates decreased year-on-year.

In terms of financing interest rates, this month's average bond financing rate is 2.98%, a year-on-year decrease of 0.51 percentage points and a month-on-month decrease of 0.08 percentage points. The change in the structure of overseas debt zero issuance, credit bond, and ABS issuance this month has led to a decrease in the comprehensive average financing rate. Among them, the average interest rate for credit bonds is 2.93%, a year-on-year decrease of 0.4 percentage points, and a month-on-month increase of 0.13 percentage points; the average interest rate for ABS is 3.14%, a year-on-year decrease of 0.51 percentage points, and a month-on-month decrease of 0.08 percentage points.

Enterprise financing dynamics: China Resources Land, Poly Developments and Holdings Group had the highest issuance amounts, while Su Gaoxin had the lowest costs.

Looking at typical real estate companies' bond issuances this month, China Resources Land and Poly Developments and Holdings Group had the highest financing amounts, both at 3 billion yuan, with Su Gaoxin (600736.SH) having the lowest average financing rate of 2.13% and the lowest financing cost.

Table: Typical Enterprises' October 2024 Bond Issuance Statistics

Note: Scale unit is in 100 million yuan, interest rate unit is in %