China Index Academy: In July, the total bond financing amount for the real estate industry was 71.39 billion yuan, a year-on-year increase of 90.3%

According to the Zhitong Finance APP, the China Index Academy has monitored that the total bond financing in the real estate industry reached 71.39 billion yuan in July 2025, a year-on-year increase of 90.3%. Affected by the low base effect from the previous year, the total financing amount in July increased year-on-year, and from May to July, the monthly financing amount maintained a growth trend. In terms of financing structure, the real estate industry's credit bond financing was 45.65 billion yuan, a year-on-year increase of 104.8%, accounting for 64.0%; ABS financing was 25.74 billion yuan, a year-on-year increase of 90.0%, accounting for 36.0%. The average interest rate for bond financing was 2.54%, a year-on-year decrease of 0.24 percentage points and a month-on-month decrease of 0.51 percentage points.

Data Source: China Index Data CREIS

In July, the issuance of credit bonds saw a significant year-on-year increase, with the main issuers being central state-owned enterprises. In July, China Jinmao, Poly Developments, and China Resources issued a total of over 3 billion yuan, while Shoukai, Jianfa, Su Gaoxin, and Dayuecheng issued credit bonds exceeding 2 billion yuan. Xinda Real Estate, China Railway Construction Real Estate, and Tiandi Source also issued credit bonds. In July, private enterprises and mixed-ownership enterprises such as Greentown, Binjiang, New Town, and RADIANCE HLDGS successfully issued credit bonds, totaling approximately 3.01 billion yuan; the bond terms were relatively long, with Greentown, New Town, and RADIANCE HLDGS issuing bonds with terms of over 3 years, and the inflow of long-term funds helps enterprises extend their debt maturity structure; this issuance by RADIANCE HLDGS and New Town was the first credit bond issuance in 2025, expanding the number of credit bond issuers. The issuance period of credit bonds in July was relatively long, mainly consisting of bonds with terms of 1-3 years and over 3 years, with an average issuance term of 3.79 years.

The issuance scale of ABS was 25.74 billion yuan, a significant year-on-year increase, and also an increase compared to the previous month. Among them, CMBS/CMBN was the largest category of asset securitization products, accounting for 41.5%; followed by REITs, accounting for 36.8%; supply chain ABS accounted for 15.2%, and affordable housing accounted for 6.4%. On July 23, the second phase of the Shenzhen Anju Rental Housing Asset-Backed Special Plan (Shenzhen Anju REITs Phase II Project) was successfully established on the Shenzhen Stock Exchange, with an issuance scale of 3.876 billion yuan, and the yield on priority securities was 2.15%. The Shenzhen Anju REITs Phase II project used four affordable rental housing projects as underlying assets: Anju Mingluyuan, Anju Lanting, Anju Dongwan Peninsula Garden, and Anju Pengwan Mansion, which collectively included 8,942 units of affordable rental housing, with a total construction area of approximately 603,000 square meters.

In February 2024, the CITIC Securities - Shenzhen Talent Housing Rental Housing 2024 First Phase Asset-Backed Special Plan, with Shenzhen Talent Housing Group Co., Ltd. as the issuer, was successfully issued and established. This project is the first phase product of the 5 billion yuan rental housing REITs shelf of the Talent Housing Group, with an issuance scale of 865 million yuan On July 31, the country's first industrial park holding-type real estate ABS "Guojun Asset Management - Wuxi Economic Development Zone National Sensor Information Industry Park Holding-Type Real Estate Asset-Backed Special Plan (ABS)" was officially established, with a scale of 660 million yuan. The underlying asset of this project is the National Sensor Information Industry Park. The expansion of holding-type real estate ABS underlying assets continues to complement public REITs, further enriching the financial tool options for enterprises to revitalize assets.

Financing Rate: Overall Financing Costs Decrease

In terms of financing rates, the average bond financing rate in July was 2.54%, a year-on-year decrease of 0.24 percentage points and a month-on-month decrease of 0.51 percentage points, with both year-on-year and month-on-month declines in the average bond financing rate. Among them, the average rate for credit bonds was 2.32%, a year-on-year decrease of 0.21 percentage points and a slight month-on-month increase of 0.05 percentage points; the average rate for ABS was 2.92%, a year-on-year decrease of 0.11 percentage points and a month-on-month decrease of 0.11 percentage points.

China Jinmao Issues the Highest Quota, China Merchants Shekou Has the Lowest Financing Cost

From the perspective of typical real estate enterprise bond issuance, in July, China Jinmao had the highest issuance amount, reaching 4 billion yuan; China Merchants Shekou had the lowest financing cost at 1.70%.

Table: Credit Bond Issuance Statistics of Typical Enterprises in July 2025

Note: Scale unit is in hundred million yuan, interest rate unit is in %. Data source: Zhongzheng Data CREIS

Capital Market Dynamics: Vanke, Jianfa, etc. Obtain New Funds, Joy City Real Estate Plans to Go Private

Recently, key real estate enterprises disclosed new financing. Among them, China Resources Land received a 2 billion yuan three-year loan from a bank, Vanke obtained a loan of 1.681 billion yuan from its major shareholder Shenzhen Metro Group, Jianfa raised 1.011 billion Hong Kong dollars through a placement, and Guomao Real Estate and Guangming Real Estate plan to issue 2.1 billion yuan and 1.5 billion yuan in corporate bonds, respectively. Several real estate companies disclosed the latest progress on debt restructuring, with Times China and Shimao Group's overseas debt restructuring plans approved, Longguang's 21 domestic debt restructuring proposals passed, and Yuanyang announced its domestic debt restructuring plan, while Fantasia Group revised its overseas debt restructuring terms again. So far, more than a dozen real estate companies' debt restructuring plans have been approved, involving a total debt of about one trillion yuan. In addition, Joy City Real Estate plans to go private, with reasons for privatization including improving governance efficiency, current financing capacity constraints, providing shareholders with a premium exit opportunity, and resolving stock liquidity issues.

Table: Recent Capital Market Dynamics of Key Real Estate Enterprises