China Index Academy: In May, the total bond financing amount for real estate companies nationwide was 28.88 billion yuan, a year-on-year increase of 23.5%

According to the Zhitong Finance APP, the China Index Academy reported that the total bond financing amount for real estate companies nationwide in May was 28.88 billion yuan, a year-on-year increase of 23.5%. In terms of financing structure, the credit bond financing in the real estate industry in May was 11.17 billion yuan, a year-on-year increase of 5.8%, accounting for 38.7%; ABS financing was 17.71 billion yuan, a year-on-year increase of 38.1%, accounting for 61.3%. The average interest rate for bond financing was 2.35%, a year-on-year decrease of 0.43 percentage points and a month-on-month decrease of 0.41 percentage points. From January to May 2025, the total bond financing amount for real estate companies was 196.47 billion yuan, a year-on-year decrease of 18.5%. In terms of financing structure, credit bond financing in the real estate industry was 120.98 billion yuan, accounting for 61.6%; overseas bond financing was 3.59 billion yuan, accounting for 1.8%; ABS financing was 71.91 billion yuan, accounting for 36.6%. In May, credit bond issuance saw a slight year-on-year increase, with the main issuers being central state-owned enterprises. In May, Poly Development and China Overseas Holdings issued a total of 3 billion yuan and 1.5 billion yuan respectively, while Jianfa issued 1.2 billion yuan in credit bonds. Suzhou High-tech, China Railway Construction, Financial Street, and Lianfa also issued credit bonds. The issuance period for credit bonds was relatively long, mainly consisting of bonds with maturities of 1-3 years and over 3 years, with an average issuance term of 4.08 years. The ABS issuance scale was 17.71 billion yuan, showing year-on-year growth and an increase compared to the previous month. Among them, CMBS/CMBN was the largest category of asset securitization products, accounting for 56.0%; followed by affordable housing, accounting for 20.8%; supply chain ABS accounted for 19.9%, and REIT-like products accounted for 3.3%. Overall financing costs have decreased. In terms of financing interest rates, the average interest rate for bond financing in May was 2.35%, a year-on-year decrease of 0.43 percentage points and a month-on-month decrease of 0.41 percentage points. The average interest rate for credit bonds was 2.29%, a year-on-year decrease of 0.44 percentage points and a month-on-month decrease of 0.42 percentage points; the average interest rate for ABS was 2.38%, a year-on-year decrease of 0.43 percentage points and a month-on-month decrease of 0.52 percentage points. From the perspective of typical real estate companies' bond issuance, Poly Development had the highest issuance amount in May, reaching 3.0 billion yuan; Suzhou High-tech had the lowest financing cost at 1.90%. Table: Statistics of Credit Bond Issuance by Typical Enterprises in May 2025 Note: Scale unit is in billion yuan, interest rate unit is in %