The central bank announced the mortgage deregulation, and a bailout measures introduced. Policy bailout, investors pay.
National Day eve announcement grabbed gold, nine silver ten nodes in the property market, property market during the National Day caught want to move around, many developers said that it has canceled the pre-discount promotions, the second-hand housing prices around the corner ready to rise.
As a leading indicator of purchase will be changed dramatically. Restriction cancel existing role, October 9 Bank released the first 25 Bank of China Wealth climate index display (survey 1856 off family domestic 26 provinces and cities, and research time for September 12 to September 23 ): no room family and just a family coming from the housing market will to rise 20 percent over the previous period, a well-off family willingness to invest in real estate is expected to rise slightly for the first time this year, is expected to pull the main reason for a slight rebound willingness to invest in real estate.
Part of the market sentiment during the National Day, the subscription amount of commercial housing reached Nanjing National Day Golden Week 2812 sets, daily subscription 402 units, an increase of 47%, a record high. And before September Nanjing cancel the purchase of the property market, the average daily amount of the subscription is only about 200 sets. Beijing Golden Week, the second-hand housing transaction price of 28,243 yuan / square meter, up 6.8 percent compared with September. During the town center turnover ratio increased 6% from the previous month, suburban turnover fell 4.3% MoM, regional changes in the structure pulled up the average price.
Different investors dominate the market in the past, is just round the real estate market characteristics required of consumers debut, if you just need to enter the market of about 10%, and may demand the release of millions of sets. Although it is impossible to ease the real estate risk, temporarily allows the economy to get respite.
Different investors, who lack the rigid demand the ability to pay cash, you need a low-interest mortgage assistance, price sensitive. Policy to allow banks to help those who just need to improve the lives of persons with buyers, a suite, or first mortgage payment completed two suites can enjoy 7% discount rate, who is going to foot the bill so generous?
Commercial banks plausibly to listed public, market-oriented as a shield, mortgage rates fell about 2% number is not small, commercial banks are not timely Huolei Feng. There are only two ways to allow commercial banks to toe the line, or the central bank to continue to release the base currency, if the same as the ECB deposit rate dropped to a negative, I believe that Chinese commercial banks will be willing to release about 5% interest rate mortgage, because, you know, in the middle of the difference is considerable.
Not massive issuance of base money, but also to revitalize the capital market, the mortgage securitization advocate rampant. Bank of New Deal will start mortgage securities capitalization, there will be 10 trillion (possibly more) of RMB funds into the property market.
Asset securitization from the "Financial drugs" sold to the United States around the world. In the 1980s, the United States to test the water this business, mortgage assets in the securities of packaged investment products, by rating, sold on the market Zhangzhuodazui investors want to be lucrative. U.S. interest rate market, the rapid development of the market, the product from the balance of $ 11.1 billion in 1980 to a substantial increase of $ 9.3 trillion in 2007, asset securitization rate mortgage over the same period has also increased from 7.6% to 64%, while the United States real estate the rapid rise in prices, affordable housing, can not afford housing through mortgage securitization, to obtain funds to buy from a house in the suburbs, had three children, a dog on a happy life. Now infamous subprime large securitized products, is one part of it.
Asset securitization is a good thing, but sales, ratings, etc. appear a series of false, when sprinkled with icing posing 3A grade debt securities, asset securitization is a Ponzi scheme for investors, and finally ended with the financial crisis.
China is still in the mortgage securitization kindergarten level, so far, domestic commercial banks only issued three pen MBS, the first pen was initiated by the 2005 Construction Bank, CITIC Trust entrusted with the total size of the issue of 3 billion yuan of China's first pen MBS- - Chien 2005-1 mortgage-backed securities. Since then, the bank has launched a total of 4 billion of Jianyuan 2007-1 personal housing mortgage-backed securities. July 2014, China Postal Savings Bank launched the "Post yuan in 2014 to support the first phase of individual housing loans securitized products (RMBS) in the inter-bank market success tender, with a total size of up to 6.814 billion yuan."
So far, financial institutions have little interest, income is higher than the short financial but lower than credit, mortgage loans are all long-term default rate lowest in good assets, banks have no incentive to spend great efforts to securitization.
Regardless of banks, brokerages would be willing, to hold the monetary base and increase liquidity, securitization is the only way. We can only go after the American model, we do not focus on securitization M2 increased, but the M3, M4, M5 increased substantially, and now banks are reluctant to relax in the hands of a good mortgage in the future, people just need to account for property protagonist, the real estate market volatility, Real estate investment is not a game for the rich, like the steel trade mortgage assets, like changing the loan, the bank bailout of the machine does not take advantage of securitization, to meet the channel costs, benefits and risks for sale, after all find a place to cry.
Financial and Internet era, the wool in pigs, to meet the needs of home buyers mortgage, it is important for investors to buy mortgage assets securitized products in the future, not Joe Smith from mortgage banking, and John Doe from next door.
Just need to buy a house, high net worth people to buy mortgage backed securities, the peace of the world.
The author is a famous chinese mold manufacturer, as a representative of all injection molding china manufacturing industries do not want Chinese real estate continues to rise, but now does not seem to rise is impossible.
