Good news about the real estate market keeps coming!
Recently, the real estate market has ushered in a series of favorable policies. Within three days, there were four positive news related to the real estate industry, with the latest one occurring on January 26th. On the same day, the Ministry of Housing and Urban Rural Development held a deployment meeting for the coordination mechanism of urban real estate financing. The meeting called for full autonomy in urban real estate regulation, and cities could adjust their real estate policies according to local conditions.
In the capital market, the real estate sector has also become one of the strongest sectors. On January 26th, the overall growth rate of the sector exceeded 3%, and individual stocks rose to the limit up; Previously, from January 24th to 25th, the overall growth rate of the real estate sector reached 3.6% and 5.39%, respectively. In three days, the overall market value of the real estate sector increased by nearly 140 billion yuan to 1.18 trillion yuan.
Today, a news from Apple also flooded the internet. According to reports, Apple has made a historic concession that EU users will be able to download applications through third parties.
The real estate market is experiencing intensive positive news
On the afternoon of January 26th, the Ministry of Housing and Urban Rural Development held a deployment meeting for the coordination mechanism of urban real estate financing. The meeting called for full autonomy in urban real estate regulation, and cities can adjust their real estate policies according to local conditions. In addition, in response to the current financing difficulties of some real estate projects, various regions should focus on the projects, study and propose a list of real estate projects that can provide financing support, coordinate financial institutions within their administrative regions to issue loans, and accurately and effectively support reasonable financing needs.
The meeting pointed out that establishing a coordination mechanism for urban real estate financing is a major measure to implement the decisions and deployments of the Party Central Committee and the State Council, meet the reasonable financing needs of real estate enterprises of different ownership equally, and promote a virtuous cycle between finance and real estate. The people's governments of cities at or above the prefecture level should effectively play a leading and coordinating role, quickly establish and operate this important mechanism, timely analyze the local real estate market situation and real estate financing needs, strengthen overall planning, refine policy measures, build a government bank enterprise communication platform, promote precise docking between real estate enterprises and financial institutions, and coordinate and solve the difficulties and problems in real estate financing.
The meeting emphasized that in response to the current financing difficulties of some real estate projects, various regions should focus on projects, study and propose a list of real estate projects that can provide financing support, coordinate financial institutions within their administrative regions to issue loans, and accurately and effectively support reasonable financing needs. Credit funds should be ensured to operate in a closed and compliant manner, and misappropriation should be resolutely prevented. The Ministry of Housing and Urban Rural Development has made great efforts to implement mechanisms. It is understood that by the end of this month, once the first batch of project lists are implemented, loans can be obtained.
The meeting requires adapting to the new situation of significant changes in the supply and demand relationship in the real estate market, accelerating the construction of a new model for real estate development, combining long and short, addressing both symptoms and root causes, and promoting the stable and healthy development of the real estate market. We must adhere to implementing policies tailored to the city, with precision and one city, and make good use of the policy toolbox to fully empower urban real estate regulation autonomy. Each city can adjust its real estate policies according to local conditions.
It is worth noting that there have been continuous positive news about the real estate market recently. In addition to the above news, on January 24th, the central bank announced that it will lower the reserve requirement ratio by 0.5 percentage points on February 5th, providing liquidity of 1 trillion yuan to the market. Industry insiders pointed out that the reserve requirement reduction can effectively release liquidity, and real estate is the beneficiary of the reduction.
On the same day on the 24th, the People's Bank of China and the State Administration of Financial Supervision jointly issued the "Notice on Doing a Good Job in the Management of Operating Property Loans", which refined the requirements for the management caliber, term, amount, and purpose of operating property loans for commercial banks. It clarified that by the end of 2024, for real estate development enterprises with standardized operation and good development prospects, national commercial banks should, on the basis of controllable risk and sustainable business, In addition to issuing operating property loans for operational funding needs related to the property itself, loans formed by replacing construction and purchasing properties, and shareholder loans, operating property loans can also be issued to repay relevant loans and public market bonds in the stock real estate field of real estate development enterprises and their group holding companies (including consolidated subsidiaries). Some securities analysts pointed out that the above notice has raised the upper limit of the available loan amount, expanded the loan purpose, and combined with the continuous development of consumer infrastructure REITs, it will help alleviate the liquidity pressure of real estate enterprises and meet reasonable financing needs.
On the afternoon of January 25th, at a press conference held by the State Council Information Office, Xiao Yuanqi, Deputy Director of the State Administration for Financial Supervision and Administration, stated that the real estate industry has a long chain and a wide scope of involvement, which has an important impact on the national economy and is closely related to the lives of the general public. The financial industry has no other responsibility and must be strongly supported. At the press conference, Xiao Yuanqi proposed four key points for recent financial work in the real estate sector, namely: 1) Accelerating the implementation and effectiveness of the urban real estate financing coordination mechanism, and under the leadership of the urban government coordination mechanism, pushing the list of real estate projects that can provide financing support to financial institutions within the administrative region; 2) Guide financial institutions to implement the management requirements for operating property loans, especially clarifying that the issued operating property loans can be used to repay the existing loans of real estate enterprises and issue open market bonds by the end of this year; 3) Continue to provide financial services for personal housing loans, and implement policies tailored to the city to further optimize personal housing loan policies such as down payment ratios and loan interest rates; 4) Request strong support for the construction of the "three major projects" and to quickly generate physical workload.
In response, Huatai Securities commented that the State Administration for Financial Supervision and Administration stated that it is "duty bound" to the real estate industry, and the financing support has been strengthened again. The regulatory authorities have made a clear statement, emphasizing the importance of the real estate industry. The expressions of "strong support" and "duty bound" highlight the strengthening of support for the real estate industry. The series of statements from the ministries are expected to promote the restoration of market confidence and provide valuation repair space for the sector. In addition, CICC stated that the four key tasks mentioned above are highly targeted, balancing risk prevention and development promotion. Combined with the recent monetary policy adjustments by the central bank, the ability and space for financial support for real estate may be further extended.
Guojin Securities stated that the central government attaches great importance to the health of real estate financing, and the financial industry is fully committed to supporting the real estate industry. In the future, the down payment ratio and loan interest rates will be further optimized, and the support from the financing side will improve the cash flow situation of real estate enterprises to a certain extent. The stable and healthy development of the industry is crucial to the stabilization of sales, and continuous support from comprehensive loose policies from both supply and demand sides is still needed. It is recommended that the current valuation bottom and good operating conditions Benefiting from the optimization of the industry structure, state-owned enterprises with improved performance.
Apple makes significant concessions
On January 26th, a news related to Apple also flashed on the screen.
According to foreign media reports, Apple has made a historic concession to allow apps to be downloaded from third parties.
On January 26th, Apple's official website released a press release stating that in order to meet the requirements of the European Union's Digital Market Act, Apple will begin adjusting its iOS and App Store rules in the European market in March 2024. Developers operating under new business terms will have the option to launch app applications through the App Store or third-party markets, and alternative payment methods can also be used through the App Store in the European Union region.
In addition, iOS apps in the EU region will reduce transaction fees for developers (as a percentage), from the original 30% to 17%, or from the discounted 15% to 10%. On the basis of reducing transaction fees, Apple will charge additional payment processing and core technology usage fees.
Foreign media pointed out that as Apple faces challenges from courts, regulatory agencies, and software manufacturers around the world regarding its strict control of third-party software, these new policies will test the aforementioned legislation and its implementation.
It is understood that Apple's plan will only apply to the European Union region, and the most eye-catching is undoubtedly to allow users to download software to iPhones for the first time without using the App Store. In addition, Apple's changes also include allowing users to easily choose a new default web browser.
The European Union passed the Digital Markets Act in 2022, aimed at curbing so-called anti-competitive behavior by technology companies. One issue that this bill attempts to address is Apple's App Store policy, aimed at breaking the company's closed iPhone application ecosystem. Although the Digital Marketplace Act also applies to Google, unlike Apple's iOS devices, Google's Android smartphones allow users to install applications outside of the Google Play Store, thus Google itself complies with this element of the law.
Apple has previously defended its policy of controlling downloads through the App Store multiple times, stating that it is necessary to ensure the security of the iPhone and reduce virus intrusion.
Recently, the news that Apple has won the annual first place in the Chinese mobile phone market for the first time has also attracted attention. On January 25th, the latest quarterly tracking report from International Data Corporation (IDC) showed that for the entire year of 2023, Apple replaced Vivo with a market share of 17.3%, becoming the best-selling brand in the Chinese smartphone market for the first time.
IDC pointed out that although Apple has been significantly impacted by competitors in the domestic high-end market, coupled with limited product upgrades leading to a decrease in attractiveness, it has still attracted more consumer demand due to significant price reductions and promotions in third-party channels. Although it no longer has significant advantages compared to Android flagship products, the overall comprehensive product strength of the iPhone is still one of the best. But now the prices of Apple products are not as high as before, and the adjustment time for channel delivery prices is getting earlier and earlier.
Earlier this month, facing increasing competitive pressure, Apple offered a rare discount to the iPhone, lowering its retail price by 500 yuan.
However, in the fourth quarter of 2023, due to intensified competition from domestic competitors such as Huawei, Apple's market share in the Chinese smartphone market decreased by 2.1% year-on-year, from 20.6% in the fourth quarter of 2022 to 20%. In the fourth quarter of 2023, Huawei's market share increased by 36.2% year-on-year, making it the fourth largest smartphone supplier in China with a market share of 13.9%, up from 10.3% in the same period last year.
Analysts predict that Apple's sales will once again face pressure in 2024. Jefferies analysts predicted earlier this month that Apple's iPhone shipments in the Chinese market will continue to decline at a double-digit rate in 2024, while Huawei's market share is expected to increase. They estimate that Huawei's global shipment of smartphones will reach approximately 64 million units in 2024, a significant increase from less than 35 million units expected in 2023.