Real Estate Trusts Sink to 30-Month Low

The hot trend in trust investing is escaping danger. Real estate trust investors are at the forefront, with the scale of real estate trusts sinking to a new 30-month low in August. Only ¥12.1 billion in new real estate trusts were issued in August. Issuance is down 71% from August 2013.

From yanglee.com:
房地产信托发行规模创30个月新低 避险情绪升温

Trust had flooded the main market continues to cool the real estate trust now. Trust with interest, according to the latest statistics show that in August this year, real estate trust issue size of only 12.12 billion yuan, the issue size is also the highest since 30-month low. Analysts said that on the one hand on the part of industry in housing prices adjust funding strand breaks occur, the market risk aversion, the other to broaden the financing channels are not unrelated.

Trust with interest, according to statistics, in August this year, a total of 670 models of trust products issued, of which real estate [-0.48% funding research report] Trust only 70 models, the number accounted for only 10.45%; its issue size of 12.12 billion yuan, accounting for 15.7% of the issue size; compared with the July issue size, the chain dropped 45.5% year on year decrease of 71%.

In addition, the average expected earnings of real estate trusts is still higher than the average level of the whole industry, it should be noted that, last month, while the decline in its size, the average expected return of real estate trust is also a slight downward trend, Aug. ring yields fell 7 basis points to 9.7%. In this regard, Pu Yi Fan Jie wealth analyst, said the real estate trust income declined mainly due to the impact of the recent easing the financial side, the infrastructure category, businesses and other types of trust dated yields have varying magnitude of the decline, including industrial and commercial enterprises in the field decline the most obvious.

The real estate investment trust status quo of volume and price down, one analyst said, in fact yields this year has been among the high real estate trust, the main market and risk aversion, and therefore the real estate trust in the short term gains is still hard to decline, while the real estate trust The scale effect is unlikely to be sustained.

Trust with interest to make this country an analyst Shuai said Trust for the establishment of real estate trust schemes increasingly cautious, financing real estate trust is currently in the downturn, coupled with the Trust to honor the arrival of the peak period of gradual economic institutions as well as an adjustment period, expected future real estate Trust financing will continue to decline.

Since a long time the real estate market is not clear, a lot of trust companies have begun to hedge, since late last year, the Financial Trust and other companies have also raised the issue of the threshold of real estate trust, try to avoid some of the four-tier cities real estate projects, but also to some financiers tentacles brokerage, fund subsidiary, P2P and other financing sources. Last month came news that the CBRC once again verbally window guidance, requires trust caution tier cities real estate projects, try not to private enterprises located in the city's real estate projects of non-core business.

Statistical data show that from May this year, 70 cities in the chain of falling house prices from 35 cities rose 55, 100 cities nationwide average price of newly built housing made three consecutive months of negative growth from the beginning of May. With the recent real estate market downturn, many organizations also issued mouthing sounds, such as Standard & Poor's recently have reported continued weakness in the Chinese real estate market will weaken China's real estate credit conditions in the coming years, expect the government does not will be like when the previous industry downturn that provide relief.

As a result, trust is even more cautious for real estate projects, it will naturally try to pass the short-term real estate projects, or confined to cities to provide financing for the project as well as the strength of strong housing prices, real estate project size is also reasonable upset .

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