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Foreign media list of the world's top ten sustainable buildings, nearly half of China on the list

Release time:

2015-11-10 00:00


Central enterprises dividends are further required to be used for livelihood expenditure.   

On 3 May, a notice from the SASAC required central enterprises to participate in the construction of guaranteed housing . In this document called "on actively participate in the development and construction of security housing notice on matters related to", the SASAC requires the central enterprises to further increase the investment in the development and construction of security housing, through a variety of ways to participate in the development and construction of security housing. And this is also the first time the SASAC issued a special document, requiring central enterprises to participate in the construction of protected housing. And the principle path, the SASAC has also advocated: "strive for the support of the local government, under the leadership of the local government, in accordance with the market-oriented mode of operation".   

May 4, the SASAC responsible person told this reporter that the central enterprises, the main body to participate in the construction of housing is mainly to real estate as the main business of the 16 central enterprises, other central enterprises shall not be developed and constructed to protect housing. A SASAC official also told this reporter that the SASAC is considering a certain percentage of the dividends of the central enterprises for people's livelihood expenditures, including support for the construction of guaranteed housing funds. "In the next few years, with the gradual increase in the proportion of state-owned capital gains handed over, the proportion of funds used for social security will gradually increase with it, including investment in guaranteed housing." The said official said. This is regarded by market participants as a response to the previous local housing project protection is not effective, the lack of funds to protect housing construction.   

Interviews with a number of central enterprises involved in which on the one hand said that they would fulfil their "political responsibility", but on the other hand, also expressed concern that, given the difficulty of the profitability of the housing project, and even the previous loss of a number of housing projects, they hope that the relevant financial support policies and local government preferential policies for the development of protected housing, and even the follow-up of the management of the housing project, can be supported in a timely manner, thus making it possible to ensure that the housing construction funds are not available. They hope that relevant financial support policies and preferential policies of local governments for housing development, as well as subsequent policies for housing management, can be complemented in a timely manner, so that housing projects can be steadily promoted as a system.   Participating Mainstays There have been many enquiries about which central enterprises are involved in the construction of subsidised housing. A direct background is that in March last year, the State-owned Assets Supervision and Administration Commission (SASAC) ordered 78 central enterprises with real estate business, in addition to 16 central enterprises with real estate as their main business, to withdraw from the real estate industry. The SASAC requires central enterprises to actively participate in the construction of housing, so that the industry once worried that some of the central enterprises were required to withdraw from the real estate business, the opportunity to participate in the construction of housing "curve land". In this regard, the relevant person in charge of the State-owned Assets Supervision and Administration Commission told this reporter that the "notice" of the "central enterprises" mainly refers to the 16 real estate-based central enterprises. In addition, some engineering, building materials and iron and steel enterprises, will provide relevant services for the housing construction projects. SASAC named in the "notice" to participate in the construction of housing protection of central enterprises, including survey and design enterprises, real estate development enterprises, engineering construction enterprises, building materials enterprises and mining enterprises.   This reporter was informed that, in addition to the 16 real estate central enterprises, another five "to retain the real estate business but subject to restrictions" of the five real estate central enterprises will also participate in the construction of housing, respectively, Luneng Group, China Aviation Industry, Shenhua Group, China Coal Group and Xinxing Group. SASAC allows these five central enterprises to retain the real estate business, but its investment in real estate restrictions - group companies can not use the main business of large amounts of capital engaged in real estate development, also does not allow group companies to guarantee its real estate business.   

Wang Xiaoqi, director of the State-owned Assets Supervision and Administration Commission's Planning and Development Bureau, told the reporter that the above five enterprises accounted for 6-7% of the total real estate business of the central enterprises, a larger scale, and do a more standardised. A deputy director of the SASAC Research Centre also told this reporter that the above five enterprises in the construction of housing has an inherent advantage, for example, Shenhua Group and China Coal Group's real estate business is mainly the development of industrial and mining land, the outside world is not easy to enter, the two central enterprises can strive for the enterprise shantytown renovation work, into the local housing construction plan. Of course, the central enterprises to participate in the construction of housing, before there is a foundation. The deputy director of the research centre of the State-owned Assets Supervision and Administration Commission mentioned above, 16 central enterprises with real estate as their main business, there have been 11 enterprises involved in the construction of sheltered housing, and some of them even invested most of their energy into the construction of sheltered housing, which is the main force in the construction of sheltered housing in China. For example, CMG is the central enterprise with the largest scale of sheltered housing construction. In 2010, CMG's sheltered housing projects totalled 24, with a total investment of 25.7 billion yuan and a total floor area of 5.64 million square metres, distributed in Tianjin, Shanghai and other cities. The SASAC issued a notice before, many central enterprises have begun to "smell the wind first move". Poly real estate related person in charge of this reporter revealed that after the two sessions, the Poly company has Poly project to the city government sent a letter, said willing to participate in the construction of housing, there have been a number of local governments to give a response. Poly plans to invest in the construction of 3 to 5 housing projects this year. China Construction is to protect housing construction written into the group's "Twelfth Five-Year Plan", and strive to protect housing investment and development accounted for 3% of the national market. It is also understood that Minmetals is looking for suitable housing projects in the Bohai Sea region, now pending approval of the Group Investment Committee construction. As for the previous not directly involved in the housing project of the central enterprises, the State-owned Assets Supervision and Administration Commission said that this part of the central enterprises themselves have a large amount of industrial land, housing construction can make these lands, access to new profit value-added channels. From the development ratio, should not be underestimated. Wang Xiaoqi told this reporter, at present, the central enterprises development and construction of protected housing area of about 23 million square metres, accounting for 13% -15% of the country's completed protected housing area. "This proportion is considered high." Wang Xiaoqi said that the market share of central enterprises in the commercial housing sector is only about 5 per cent in terms of land area, but they have undertaken 13-15 per cent of the nation's safeguarded housing development and construction tasks. The property market ultimatum: 21 central enterprises can be put into the protection of housing and the property market control macro background, the State-owned Assets Supervision and Administration Commission issued a document to allow central enterprises to participate in the protection of housing, is expected from the construction of funds to enrich the "shortages" of the protection of housing construction funds.   

According to the Ministry of Housing and Construction information, this year China to build 10 million sets of housing, to complete this goal, about 1.3-1.4 trillion yuan to be invested. Among them, more than 500 billion yuan will be raised by the central government and local governments at all levels, and the remaining 800 billion yuan will be raised by enterprises, banks and various social institutions. 29 April, the Ministry of Finance's website published a news release, the second batch of central subsidies for the guaranteed housing project special funds 33.7 billion yuan has been allocated, together with the first batch of 10 billion yuan in March, a cumulative total of 43.7 billion yuan has already been allocated. However, due to the large amount of funds, the implementation of funds is still a major problem. The State Council's inspection team recently found that some places have not yet fully funded the construction of security housing projects. An insider from CME Group told the newspaper that after CME invested in a loan for a security housing project in a city in Liaoning, the government delayed in giving the company construction money. Interview with a property group who wished to remain anonymous, the construction of housing has always been a funding gap, the State-owned Assets Supervision and Administration Commission to encourage central enterprises to actively participate in the construction of housing, but also to implement the central real estate market regulation and control of the spirit. It is understood that in 2010, some local construction of housing is not effective, "the competent authorities hope that the central enterprises to play their own advantages, large-scale participation in the construction of housing construction," a central enterprise executives told this reporter.   

This reporter was informed that the next step in opening up government funding channels, state-owned capital gains, is expected to provide some financial support for housing.   Of course, the central enterprises to participate in the construction of housing, state capital gains can not be used as a full source of funds, most of the funds required for the construction of housing need to raise their own enterprises. Central enterprises are looking for various financing channels. Zhang Zhaoxiang, vice president of CME, told this reporter that CME is planning to work with China Development Bank and China Life to study innovative financing methods for subsidised housing. The above CME insiders told this reporter that this year's financing policy will be more favourable to the protective housing investment, and is expected to increase the local government's financial support for the protective housing. SASAC asked in the Notice that the central enterprises of real estate development category "should seize the opportunity of introducing preferential policies on land supply, investment subsidies, financial subsidies, financing, taxes and fees, etc.," and "organically combine the guaranteed housing with commercial real estate development". ". However, Zhang Zhaoxiang admitted that the specific progress of the construction of protected housing depends on the implementation of financial policies and national policies. Looking at the loan data, the outlook seems to be optimistic, as protected housing is receiving more financial support than commercial housing. the latest data released by the central bank on 28 April also reflects this trend. 2.24 trillion yuan in the first quarter of 2011. Among the new loans, real estate development loans added 167.8 billion yuan, with the balance growing 17.0% year-on-year, down 6.5 percentage points from the previous year, of which 65.1 billion yuan was added to the development loans for protected housing, an increase of 40.1% from the beginning of the year, and the new development loans for protected housing accounted for about 40% of the real estate development loans. Tian Jingqi, general manager of Minmetals Land, admitted in an interview with this reporter that "in the situation of tightening funds for commercial housing, the protection of housing can be tilted in terms of lending, which is attractive to enterprises."

Profit model worries --- Of course, the interview, although a number of central enterprises from the political task, social responsibility height, promised to protect housing projects; but due to self-financing business operations, the actual operation, some central enterprises also have concerns. A reluctant to disclose the name of the central enterprise executives said in an interview with this reporter, although the State-owned Assets Supervision and Administration Commission called on the central enterprises to increase the construction of housing, but the current biggest contradiction is the short-term behaviour and the establishment of a long-term system of contradictions, "the practice is very questionable". 24 February, the Standing Committee of the Political Bureau of the Central Committee of the Communist Party of China, Vice Premier Li Keqiang, attended the National Conference on Safeguarding Housing Project Work. National Safeguarded Housing Project Work Conference and delivered a speech, stressing that building 10 million sets of safeguarded housing is a hard task. "Central enterprises can contribute, but the guaranteed housing should be the responsibility of the government, the local government on the one hand wants to solve the construction of guaranteed housing through the market-oriented approach, on the other hand, but also refuses to give up the land finance and tax revenues brought about by the revenue, and thus puts the enterprise in an awkward situation, the profit margin is extremely limited." The aforementioned central enterprise executives who did not want to be named said. What makes many central enterprises feel confused is also the uncertainty of the rules. For example, public rental housing is originally for long-term rental housing, but there are some places that allow repurchase after five years. Thus the aforementioned central enterprise executives who do not want to be named are concerned that after the completion of the security housing may lead to more serious conflicts: despite the completion of the political task, but the formation of new interests of vested interests, "not only 'build', but also the maintenance and management, the most fundamental problem is the establishment of long-term security system. ". And different places in the security of housing construction policies are also different, obviously, central enterprises want to participate in the construction of security housing, and do not lose money, depends largely on how to bargain with the local, negotiate favourable conditions. Sixteen central enterprises, only China Construction, China Railway Construction, China Metallurgical, Gezhouba and other enterprises have their own construction team, not all central enterprises have the advantage of the whole industry chain, most of the central enterprises can only be invested in the construction of housing, and it is understood that investment in the construction of housing, the risk is greater. As a matter of fact, the loss problem of building protected housing has not been well solved. Poly Real Estate Chairman Song Guangju has confessed that the profit of Guangzhou Xiziwan project has about 10%, but the Beijing built housing project is in a loss-making situation, the reason is that the Beijing project to the government's previous sales time, but the government related sales programme has been delayed, resulting in all the properties in the project can not be sold on time, the project involved in the project of the seven developers are all in the red. There are many other cases of similar losses. Many companies are also wary of the construction of protected housing. On 29 April, the auction of the first residential land in Guangzhou to be allocated for the construction of protected housing hit a cold streak, with zero cards raised on the spot, and the land was taken by Poly Real Estate at 788.5 million yuan, only slightly higher than the starting price of 5 million yuan, or 4,407 yuan per square metre of the floor price.   

"Under the existing institutional arrangements, it is very difficult for companies to guarantee that they will not lose money by building protected housing." Zhang Guilin, chairman of Beijing Sumitomo Group, once confessed in an interview with this reporter. He believes that institutional exploration must be carried out to attract more real estate companies to join the construction of guaranteed housing, turning it into a sustainable force. The relevant person in charge of China Railway told this reporter that in the case of unclear relevant rules and imperfect policies, China Railway will only take the way of contracting to participate in the construction of guaranteed housing. Compared with the uncertainty brought about by the investment, the construction is charged a fixed fee, which can better guarantee the return of the enterprise. There are also some central enterprises that have clearly indicated that they must find a stable profit model before increasing the construction of protected housing.   There are also some pioneering central enterprises to explore the profit model in front. China Construction is one of them. Meng Qingyu, the group's secretary, said that China Construction is exploring various profit models to fulfil its duties as a central enterprise on the one hand, and not to damage shareholders' interests on the other.   Specific profit models include general contracting, price-restricted development and mixed development, cost plus salary bidding services, BT investment and integrated urban development. The general contracting model yields 3 to 6 per cent, while the BT investment model can yield 8 to 10 per cent. Mixed development includes a bidding for land, unified payment of land price, in which the commercial housing development is not limited to the selling price and sales targets, and the development of security housing according to the provisions of the operation, the rate of return can also reach 10%. It is understood that Zhonghai in Guangzhou Jinsha Xinyuan that adopted this model.

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