Please Note: Blog posts are not selected, edited or screened by Seeking Alpha editors.

Xinyuan Real Estate Debt Pressures Are Enormous

|Includes: Xinyuan Real Estate Co., Ltd. (XIN)
Summary

China Real Estate Corporation's huge debt matures in 2019.Many companies are running out of cash flow.

No one bought Chinese houses after the second half of 2018.And there are a lot of real estate projects under construction.

Most of the people's money is also used to buy houses. Many people have more than two houses.

Small businesses like Xin have huge debt pressures, with less cash and more short-term debt.

XIN China.

In 2019, China's Housing Enterprises Are Far Away From The Debt-Ridden, Debt-Issuing Difficulties Of Small And Medium-Sized Housing Enterprises, Which Are Likely To Replicate The 18-Year Environmental Protection Industry Debt Outbreak. 131 Housing Enterprises Have 7.89 Trillion Yuan Of Debt To Be Repaid In 2019. In Response To The Recent Housing Financing Tide, Chen Lei, Chief Analyst Of Zhuge Housing Data Research Center, Said That Many Corporate Bonds Expire At The End Of 2018 And The Pressure To Repay Is High, So The Recent Housing Enterprises Finance. Increased Capital Is Not Deregulation. Many Enterprises Have Also Explained In Their Financing Plans That The Proceeds Will Be Used To "Repay Old Debts By Borrowing New Debts". It Is Expected That The Cash Flow Of Housing Enterprises Will Become More Tense In 2019. After Several Years Of Continuous Financing, Housing Enterprises Will Usher In A Period Of Concentrated Debt Repayment. The Maturity Scales From The Second Half Of 2018 To 2021 Are 2.9 Trillion Yuan, 6.1 Trillion Yuan, 5.9 Trillion Yuan And 3.4 Trillion Yuan, Respectively. In The Circular On Supporting Direct Financing Of High-Quality Enterprises To Further Enhance The Economic Ability Of Enterprise Bond Service Entity Issued By The National Development And Reform Commission On December 12, 2018, It Mentioned That Enterprises With Business Income Of Construction Industry And Real Estate Industry Exceeding 30 Billion Yuan Should Be Supported In Debt Financing. In The Reference Standard, The Requirements For Real Estate Enterprises Are As Follows: Total Assets Are More Than 150 Billion Yuan, Business Income Is More Than 30 Billion Yuan, Not Exceeding The Key Supervision Line Of The Asset-Liability Ratio Of The Industry; If The Key Supervision Line Is Not Specified, In Principle, The Asset-Liability Ratio Shall Not Exceed 85%. Many Small And Medium-Sized Housing Enterprises Are Expected To Face Serious Debt Problems, Such As Xin, Which Has Issued Two Debt Repayments With Interest Rates Of Up To 8.5% In Just Two Months. After The House Is Sold In 2019, The Enterprises Have No Income Source, No Cash Reserves, Or Those With Excessive Debt Will Probably Go Bankrupt.

$Xin$

Disclosure: I/we have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.