Two departments: further strengthen the supervision of the commodity futures spot market
The National Development and Reform Commission and the Ministry of Industry and Information Technology recently issued the “Notice on the Implementation Plan for Rejuvenating Industrial Economic Operation and Promoting High-quality Industrial Development”, stating that it is necessary to ensure the supply of bulk raw materials and stabilize prices. Continue to closely monitor the supply and demand and price changes in the bulk raw material market, vigorously increase the effective supply of the bulk raw material market, and flexibly use national reserves to carry out market adjustments. Further strengthen the supervision of the commodity futures spot market, and resolutely curb excessive speculation.
Viewpoint of Zhanzhi Group: In order to stabilize commodity prices, the country still implements strict controls to prevent speculation. It is expected that coal and steel prices will gradually return to the market dominated by the supply and demand structure.
New policies on housing subsidies have been launched in many places to boost short-term transactions in the property market
Recently, Hunan Hengyang issued a housing subsidy implementation plan, stipulating that the purchase of newly-built commercial housing before May 31, 2022 can enjoy financial subsidies of varying amounts, up to 50% of the deed tax paid. In addition, many cities and regions, including Changchun, Harbin, Jingmen, Xinxiang, Kaifeng, and Nantong Hai’an, have introduced housing subsidy measures. In order to stimulate short-term transactions, some areas have set a certain period for housing purchase subsidies.
Viewpoint of Zhanzhi Group: In the short term, in the current environment of poor market transactions, it is expected that more cities will follow up with supportive policies to stabilize the market. Some cities with greater pressure to destock will adopt methods such as issuing housing subsidies and increasing the amount of provident fund loans to promote transactions. Under the stimulus of various “special” houses, the transaction volume of the property market is expected to increase in the short-term, and rising demand will drive upstream steel demand, which will benefit steel prices in the short term.
The release of personal housing loans has accelerated, and the real estate financing environment has improved
According to data released by the Central Bank on December 13th, at the end of November 2021, the balance of personal housing loans was 38.1 trillion yuan, an increase of 401.3 billion yuan that month, an increase of 53.2 billion yuan over October. In addition, we learned from the regulatory authorities and many banks that at the end of November, real estate loans from banking financial institutions increased by more than 200 billion yuan year-on-year. Among them, the balance of personal housing loans increased by more than 110 billion yuan year-on-year, and development loans increased by more than 90 billion yuan year-on-year. .
Zhanzhi Group’s point of view: As financial institutions continue to improve their real estate financing behavior, the real estate market’s reasonable funding needs are being met. It is expected that real estate financing will further return to normal and promote a virtuous circle and healthy development of the real estate industry. The rebound in the housing market will also increase market confidence, increase the area of new housing construction, and stimulate demand for steel.