Core Viewpoint - The recent trend of listed real estate companies exiting the capital market is characterized by a predominance of passive delistings and an increase in active privatization delistings, indicating a significant restructuring and reshuffling within the industry over the next 2-3 years [1][11]. Summary by Sections Delisting Trends - In October 2023, two listed real estate companies, Winking Property and the previously high-performing Shankun Property, announced their exit from the capital market [1]. - Since the first delisting of New Power Holdings in 2023, nearly 23 listed real estate companies have exited the A+H share market within three years, with 7 companies opting for privatization since 2021 [1][2]. Reasons for Delisting - The delisting of companies like Shankun Property and Evergrande reflects a broader trend of performance decline among listed real estate firms due to liquidity crises and ongoing industry adjustments [2]. - Companies listed on the Hong Kong Stock Exchange face mandatory delisting if they remain suspended for 18 months, while A-share companies often trigger delisting due to stock prices falling below 1 yuan for 20 consecutive trading days [2][3]. Privatization Movement - The number of companies choosing to privatize has notably increased, with several firms, including Winking Property and Dayue City, considering privatization as a strategic response to market pressures [7][9]. - The reasons for privatization include ongoing market and operational pressures, the need for strategic adjustments, and the desire to enhance operational efficiency [9][10]. Financial Performance - Winking Property has reported continuous losses since 2022, with a significant loss of 3.26 billion yuan in 2024, highlighting the financial pressures driving privatization decisions [9]. - The sales revenue of Winking Property has drastically decreased from 26 billion yuan in 2021 to 7.02 billion yuan in 2024, further emphasizing the challenges faced by the company [9]. Future Outlook - The combination of passive delistings and active privatizations illustrates the current phase of "clearing" and "restructuring" within the industry, suggesting that this trend will continue in the coming years [11].
近30家上市房企退市，“退市潮”或将持续2-3年