Real estate trust calls for a relapse

Although the China Banking Regulatory Commission clarified that the real estate trust has not been stopped, the determination to tighten the real estate trust is very clear.

On May 19th, the reporter learned from an inside information source close to the China Banking Regulatory Commission that at present, the banking regulatory bureaus in Heilongjiang and other regions have been ordered by the China Banking Regulatory Commission to inspect the real estate trust products in the region. It is expected that a risk assessment report will be formed within the next one or two months. "As soon as two months, the China Banking Regulatory Commission may stop the real estate trust." The above source told reporters.

The expansion of real estate trust business in the first half of the year is the main reason why the China Banking Regulatory Commission has instructed the banking regulatory bureaus in some regions to check the real estate trust products in the region. According to data from the Central Bank, new real estate loans in the first quarter of 2011 totaled 509.5 billion yuan, a decrease of 333.8 billion yuan year-on-year, but the scale of real estate trusts increased significantly. According to the statistics of the China Trust Association, in the first four months of 2011, trust companies issued a total of 222 collective real estate trust projects, raised capital of 72.121 billion yuan, and the number of shares increased by 66.92% compared with the same period last year. The scale of raised funds increased by 115.26% year-on-year. “According to our industry statistics, the number of real estate trusts currently issued is at least 80 billion yuan.” Insiders of a well-known trust company told reporters that at present, major trust companies have a lot of real estate quality projects, and the trust income has also reached about 20%, last year About 13%. "Real estate development loans have been greatly reduced, and more and more real estate companies are facing a shortage of funds. Finding out capital through trust financing has become the best choice for many developers," the source said.

According to sources, at present, some regional banking supervision bureaus check the real estate trusts in the region in order to test system risks and prepare for the suspension of the future.

Lack of money and high debt caused by sluggish sales and financing difficulties are forcing domestic housing companies to find money everywhere. It is the public high-debt housing enterprises who continue to raise debts at a high interest rate in the absence of money, and the CBRC has to be wary of the risk of real estate trusts.

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