Central Institute of Fingers: The total amount of real estate corporate bond financing in January was 50.98 billion yuan. Credit bonds and ABS are still the main sources of financing.

According to the research institute of the China Real Estate Index System (CREIS), the total amount of real estate corporate bond financing in January 2025 was 50.98 billion yuan. In terms of financing structure, credit bond financing in the real estate industry was 26.16 billion yuan, accounting for 51.3%; ABS financing was 24.82 billion yuan, accounting for 48.7%. The average interest rate for bond financing was 2.93%, a decrease of 0.36 percentage points year-on-year and an increase of 0.13 percentage points month-on-month. 1. Financing Overview: Credit bonds and ABS remain the main source of financing Source: CREIS data In January, the issuance of bonds by private real estate enterprises significantly increased. During the month, a total of 4 private and mixed ownership real estate enterprises completed credit bond issuances, including Greentown, Hangzhou Binjiang Real Estate Group, MIDEA REAL EST, and New Hope Liuhe Real Estate, with a total issuance amount of 3.9 billion yuan. On January 23, MIDEA REAL EST successfully issued the first tranche of medium-term notes for 2025 with an actual issuance amount of 1.5 billion yuan and a term of 5 years. The issuance interest rate of these notes was 3.00%, and the funds raised were planned to be used for project construction and working capital. On January 13, New Hope Liuhe Real Estate successfully issued the first tranche of medium-term notes for 2025, with a total issuance amount of 800 million yuan and a coupon rate of 2.84%. The funds raised were intended to be used for debt repayment, project construction, and working capital. Both MIDEA REAL EST and New Hope Liuhe Real Estate's medium-term notes were fully guaranteed by China Credit Trust Investment Co., Ltd., which continued to support the issuance of bonds by private enterprises. This month, state-owned enterprises such as China Construction, Zhuhai Huafa Properties, etc. issued credit bonds, with total issuances of 2 billion yuan, 1.7 billion yuan, and 1.58 billion yuan respectively. The proportion of short-term commercial paper decreased significantly compared to last month, leading to an increase in the average tenure of credit bonds to 3.48 years. Data source: CREIS data The issuance volume of ABS was 24.82 billion yuan, with CMBS/CMBN being the largest type of asset securitization product, accounting for 44.9%; followed by supply chain ABS, accounting for 28.5%; affordable housing and REITs accounted for 14.9% and 11.6% respectively. In January, CMBS for rental housing was launched, with Financial Street Holdings successfully issuing CMBS. Specifically, on January 15, Shanghai Real Estate Housing Development Co., Ltd. successfully issued the "Guojun - Real Estate Housing Development Guarantee Rental Housing First Phase Asset Support Special Plan" on the Shanghai Stock Exchange with an initial shelf size of 7 billion yuan, the first phase of 3.701 billion yuan, a 21-year term, and an issuance interest rate of 2.2%. On January 21, Financial Street Holdings issued the Shanghai Rongyue Center CMBS, with a total issuance amount of 4.6 billion yuan, a term of 18 years, and a priority expected yield of 2.80%. 2. Financing Interest Rates: Bond financing interest rates decreased year-on-year In terms of financing interest rates, the average interest rate for bond financing this month was 2.93%, a decrease of 0.36 percentage points year-on-year and an increase of 0.13 percentage points month-on-month. Under the background of overall cost of capital decline, the comprehensive average interest rate of real estate enterprise financing continued to decrease. However, this month, the issuance of credit bonds by some state-owned enterprises and mixed-ownership enterprises increased the cost of credit bond financing, resulting in a slight increase in the average interest rate for bond financing compared to the previous month. The average interest rate for credit bonds was 3.48%, an increase of 0.25 percentage points year-on-year and 1.0 percentage points month-on-month; the average interest rate for ABS was 2.36%, a decrease of 1.09 percentage points year-on-year and 0.77 percentage points month-on-month. 3. Corporate Financing Dynamics: Suzhou New District Hi-Tech Industrial has the highest issuance amount and lowest cost In terms of typical real estate bond issuances, this month, Suzhou New District Hi-Tech Industrial had the highest issuance amount of 2.62 billion yuan and the lowest financing cost with an average interest rate of 1.8%. The financing costs of Su Gaixin and China Enterprise were also relatively low, at 1.8% and 1.9% respectively. Table: Statistics on typical enterprise bond issuances in January 2025 Note: Scale unit is in billions of yuan, interest rate unit is % Data source: CREIS data