Recently, the central and local governments at all levels have voiced their voices one after another, adjusted and optimized real estate policies in a timely manner, and made good use of the policy toolbox to better meet the rigid and improved housing needs of residents.

　　A few days ago, Zhengzhou issued the "Notice on Further Promoting the Stable and Healthy Development of the Real Estate Market in Our City", proposing 15 optimization policies, such as canceling the sales restriction and implementing "recognizing the house but not the loan".

　　The insiders believe that stabilizing the construction industry and the real estate industry plays an important role in promoting the economic recovery. Previously, some adjustment policies proposed by the Ministry of Housing and Urban-Rural Development and the People’s Bank of China will accelerate, and the real estate market is expected to usher in a steady development trend.

　　On August 4th, the National Development and Reform Commission and other four departments held a press conference with the theme of "laying a good combination of macro policies and promoting high-quality economic development". Yuan Da, Deputy Secretary-General of the National Development and Reform Commission and Director of the Comprehensive Department, said that policies and measures such as promoting the renovation of urban villages in mega-cities and the construction of "flat and emergency dual-use" public infrastructure, and orderly expanding the issuance scale of real estate investment trusts (REITs) in the infrastructure sector have been introduced and implemented one after another, and other policies are also being pushed forward, providing strong policy support for sustained economic recovery.

　　"Strengthen policy reserves in better meeting the rigid and improved housing needs of residents and actively expanding effective investment, and continuously release the potential of ultra-large-scale market." Yuan Da said.

　　Zou Lan, director of the Monetary Policy Department of the People’s Bank of China, said that he would continue to support the smooth operation of the real estate market, and reiterated that he would continue to implement the loan support plan for Baojiaolou until the end of May 2024, and steadily push forward the rental housing loan support plan in pilot cities. At the same time, guide banks to adjust the interest rate of existing individual housing loans in an orderly manner according to law.

　　It is worth mentioning that this is not the first time that the People’s Bank of China has proposed to adjust the "stock mortgage interest rate". On July 14th, at the press conference of financial statistics for the first half of 2023 held by the State Council Office, Zou Lan said that the interest rate of existing mortgage loans issued in previous years in China was still at a relatively high level. "Next, in accordance with the principles of marketization and rule of law, the People’s Bank of China supports and encourages commercial banks and borrowers to negotiate independently to change the contractual agreement, or to issue new loans to replace the original stock loans."

　　Subsequently, on August 1st, the People’s Bank of China and the State Administration of Foreign Exchange also explicitly proposed in the working meeting in the second half of 2023 that the differentiated housing credit policy should be accurately implemented due to the city’s policy, and the interest rate and down payment ratio of individual housing loans should continue to decline to better meet the rigid and improved housing needs of residents. Guide commercial banks to adjust the interest rate of existing individual housing loans in an orderly manner according to law.

　　Zhang Bo, president of 58 Anjuke Research Institute, said that at present, the downward direction of the interest rate of existing individual housing loans has been made clear, which is an important measure to reduce the demand-side cost of buying houses. On the one hand, adjusting the interest rate of stock mortgage can reduce the economic burden of the people who have bought houses, and play a certain role in promoting their living expenses. On the other hand, it can also reduce the phenomenon of early repayment of loans, which is conducive to the stability of high-quality mortgage assets of banks.

　　In fact, in addition to the frequent statements of the financial sector, the housing and construction sector has also made a clear statement. Ni Hong, Minister of Housing and Urban-Rural Development, pointed out at a recent enterprise symposium that it is necessary to continue to consolidate the trend of stabilization and recovery of the real estate market, vigorously support the demand for rigid and improved housing, and further implement policies and measures such as reducing the down payment ratio and loan interest rate for the first home purchase, reducing taxes and fees for the purchase of improved housing, and "recognizing housing without repaying loans" for individual housing loans.

　　Among these policies, the policy of "recognizing the house without recognizing the loan" has received great attention. Li Yujia, chief researcher of the Housing Policy Research Center of the Guangdong Provincial Urban Planning Institute, said that "there is no need to recognize a house" means that when determining the loan ratio, commercial banks do not look at the previous loan records, but only determine whether there is a house under the family name. This means that the "sell one, buy one" improved home buyers will enjoy the treatment of the first home purchase.

　　Policies such as "recognizing the house without recognizing the loan" are expected to usher in more breakthroughs in the second half of the year. On August 3, Zhengzhou announced the implementation of the policy of "recognizing houses but not loans", which is considered to have a strong demonstration significance. First-tier cities such as North, Shanghai, Guangzhou and Shenzhen have also indicated that they will pay close attention to the implementation work in conjunction with relevant departments in light of the actual situation of the local real estate market, vigorously support and better meet the rigid and improved housing needs of residents, and promote the stable and healthy development of the real estate market.

　　On the fourth day after losing contact in a cross-country training race in Cuihua Mountain Scenic Area, a woman in pucheng county, Weinan City, Shaanxi Province, was found in the mountains by search and rescue personnel.

　　At about 18 o’clock on September 24th, The Paper learned from Cuihua Mountain Scenic Area that the woman had been found safely around 6 o’clock this afternoon, and she was in good health, and there was no serious problem for the time being. As for why the woman lost contact, the staff member said, "It may have deviated from the competition route."

　　A staff member of the Cuihuashan Scenic Area Office also introduced that the woman was going down the mountain accompanied by search and rescue personnel, and it took about two hours to go down the mountain.

　　The aforementioned staff said that at present, they have limited information, and it is necessary to wait for the search and rescue personnel to come back to learn more about how the woman spent these four days.

　　At about 18 o’clock on the same day, the woman’s brother also told The Paper that earlier, the rescue team members informed their families that they had found their sister in the mountain, and they first rested on the mountain for a while, and then chose the appropriate route to go down the mountain.

　　According to the report of Shaanxi Metropolitan Express on September 24th, the lost woman is a sports enthusiast and often participates in various sports competitions. On September 20th, she came to Cuihua Mountain Scenic Area to participate in the Qinling Cross-country Training Competition. The race starts at 8: 30 and ends at the gate of the scenic spot. However, the husband of the woman who lost contact said that at 4 o’clock in the afternoon, all the people responsible for the end of the training match had already gone down the mountain, but there was no trace of his wife and no one answered the phone. Then he reported the police.

For a new car, the comprehensive discount is as high as 100,000 yuan, the wardrobe product is over 100,000 yuan, 40,000 yuan, and each set of air-conditioning cabinets is highly subsidized by 1000 yuan … For consumers, a big wave of "wool" is already on the way.

The Securities Times reporter learned from the Guangdong Provincial Department of Commerce that on April 28th, the 2024 Guangdong Consumer Goods Trade-in Campaign and the "Home 520" shopping season (promoting consumption in summer) were officially launched. According to the relevant person in charge of the Guangdong Provincial Department of Commerce, the theme of this activity is "’old’ needs to be replaced by new ones to enjoy consumption", focusing on key areas such as automobiles, home appliances, home improvement and kitchen and bathroom. Trade-in of consumer goods will run through the whole year, and the "Home 520" shopping season (promoting consumption in summer) will last until the end of June.

Since the beginning of this year, policies and measures on the trade-in of consumer goods at the national level have been continuously introduced. On April 26th, the People’s Bank of China, the National Development and Reform Commission, the Ministry of Finance and the General Administration of Financial Supervision jointly held a promotion meeting on large-scale equipment renewal and trade-in of consumer goods. At the same time, the trade-in activities in various places are in full swing, and the trade-in boom of consumer goods is set off with real money. Trade-in of consumer goods will create a trillion-dollar market space. As the main line running through the current and future period, it is expected to bring benefits to related industries and enhance the profitability of listed companies.

Focus on three major areas: automobiles, home appliances and home improvement kitchen and bathroom.

According to the "Action Plan for Promoting Trade-in of Consumer Goods in Guangdong Province" released in early April, Guangdong will mainly carry out trade-in in three areas: automobiles, household appliances, home improvement and kitchen and bathroom. The reporter found out that in this trade-in activity of consumer goods, a number of listed companies in more than three fields issued preferential policies with great strength and high amount.

In the automobile field, many models of Ai ‘an and Haobo, which are owned by GAC, have preferential conditions with different amounts, ranging from 26,000 yuan to 100,000 yuan under the market concessions and loan interest subsidies of the OEM. Among them, the comprehensive discount of AION LX PLUS can reach as high as 100,000 yuan, and you can enjoy lifetime warranty (complete vehicle), lifetime free basic maintenance and free charging piles. This is also the model with the highest comprehensive preferential amount in this trade-in activity.

In terms of other car companies, BYD has introduced different redemption rights for series of cars such as Dynasty Net, Ocean Net, Tengshi, Equation Leopard and Wangwang. Weilai announced the introduction of a subsidy of up to 1 billion yuan for oil vehicle replacement, and the maximum benefit for oil vehicle users to replace Weilai is up to 30,000 yuan; Xpeng Motors has issued a policy of 15,000 yuan for the replacement of this product and 10,000 yuan for the replacement of other products; Ideal launch "May Day Ideal Car Festival", from April 22nd to May 5th, order brand-new ideal L6, 2024 models of ideal L7/ ideal L8/ ideal L9, ideal MEGA, and enjoy the right to buy a car for a limited time of up to 20,000 yuan.

In the field of home appliances, Gree Electric said that during the event, the highest discount for air conditioners is 400 yuan/set, and the highest discount for cabinets is 1000 yuan/set. It will also provide consumers with one-stop service for exchanging old ones; Midea Group introduced a replacement subsidy, and purchased green appliances to enjoy an additional replacement subsidy ranging from 50 to 1000 yuan; Hisense home appliances carry out trade-in activities for about 300 models in five categories: TV, refrigerator, air conditioner, washing machine and kitchen appliances, among which the first-class energy efficiency accounts for more than 80%, and the maximum subsidy for a single unit is 2,000 yuan.

It is worth noting that a number of home appliance listed companies have invested heavily in trade-in activities, and the total amount of investment has been clearly defined. Gree Electric announced on April 28th that in response to the State Council’s "Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods", it will invest 3 billion yuan to start the trade-in of household appliances from now on. Hisense Home Appliances said that the company plans to invest a total of 800 million yuan in trade-in subsidies nationwide in 2024.

In the field of home improvement kitchen and bathroom, Sophia has made great profits on solid wood boards, dusting, wooden doors, wardrobes, cabinets and other products, and has made great discounts. At the same time, she has also upgraded the old renovation service, provided free on-site room measurement and design services, and launched a new package service of 7,999 yuan for five major spaces, allowing consumers to realize a big renovation with a small budget.

Government subsidy+financial empowerment+e-commerce platform assistance

In addition to the large profits of enterprises, the government, financial institutions, e-commerce platforms and other entities will participate together to form a joint force and bring greater benefits to consumers.

It is reported that in order to promote the trade-in of automobiles, household appliances and home-improvement kitchens and bathrooms, Guangdong Provincial Finance will arrange special funds to issue subsidies for scrapping and updating automobiles, and coupons for replacing and updating automobiles and exchanging household appliances.

Taking automobile "replacement and renewal" coupons as an example, individual consumers who transfer their own vehicles in Guangdong and buy new energy vehicles and fuel vehicles that meet the national six emission standards in Guangdong are given a one-time subsidy for car purchase coupons. The subsidy standard is divided into three grades: if the car purchase price is 70,000 yuan (inclusive) to 150,000 yuan (exclusive), the subsidy for purchasing new energy vehicles is 3,000 yuan/vehicle, and the subsidy for fuel vehicles is 2,000 yuan/vehicle; If the car purchase price is 150,000 yuan (inclusive) to 250,000 yuan (exclusive), the subsidy for new energy vehicles is 5,000 yuan/vehicle, and the subsidy for fuel vehicles is 4,000 yuan/vehicle; If the car purchase price is more than 250,000 yuan (inclusive), the subsidy for new energy vehicles is 8,000 yuan/vehicle, and the subsidy for fuel vehicles is 7,000 yuan/vehicle.

In terms of financial institutions, Guangdong ICBC supports the trade-in activities by launching preferential financial products, improving the convenience of financial services and launching rich promotional investment. For example, the product of "trade-in by installment" has been launched in a targeted manner. For automobile products, according to customer qualifications and loan demand, the "zero" down payment can be supported at the highest, and loan support can be provided at 100% of the automobile price, with a maximum loan of 1.5 million yuan. Guangdong UnionPay will cooperate with banks to provide relevant rights and interests, such as "200 yuan discount for car purchase with credit card over 10,000 yuan", "80 yuan discount for home appliances with digital credit card over 1000 yuan" and "200 yuan discount for home decoration with credit card over 10,000 yuan". Guangdong Construction Bank introduced subsidies for the sale of old household appliances and the purchase of new ones with "trade-in". At the same time, it also offered profit-making sales to the enterprises participating in the activities.

In terms of e-commerce platform, Meituan Platform said that it plans to invest more than 5 billion yuan in marketing and subsidy resources in the next three years, relying on offline instant distribution capabilities to provide support for trade-in; Tmall launched the theme marketing campaign of "Guangdong Home Appliances Trade-in", and set up online special marketing and live broadcast activities in daily marketing and major marketing nodes such as 618, double 11 and Home Improvement Festival; In JD.COM, the subsidy benefits of "trade-in subsidies for old goods, with a maximum reduction of 2,000 yuan" are provided, covering more than 200 sub-categories of consumer goods such as household appliances and household appliances.

The potential of the trillion-dollar market has gradually opened up.

Since the beginning of this year, the national policy on trade-in of consumer goods has been continuously introduced, and various measures have been implemented intensively. In March, the State Council issued the Action Plan for Promoting Large-scale Equipment Renewal and Trade-in of Consumer Goods. In April, the Ministry of Commerce and other 14 departments jointly issued the Action Plan for Promoting Trade-in of Consumer Goods, proposing to promote the replacement of automobiles with "energy", home appliances with "intelligence" and home improvement and kitchen and bathroom with "rejuvenation" on the basis of respecting consumers’ wishes.

According to the National Development and Reform Commission, by the end of 2023, the number of domestic civil automobiles reached 336 million, and the number of household appliances such as refrigerators, washing machines and air conditioners exceeded 3 billion. The upgrading of automobiles and household appliances will create a market space of one trillion yuan. Zhang Yi, CEO and chief analyst of Ai Media Consulting, said that the fields of automobiles, home appliances, home improvement, kitchen and bathroom are closely related to consumers’ daily life, which has penetrated into almost every family in China, and the consumption space brought by the whole market is huge.

In the face of the trillion-dollar consumer market, the reporter found that in addition to Guangdong, many places in the country have also taken action, including Zhejiang, Hunan, Shandong, Shanxi, Chongqing and other provinces and regions have introduced relevant action plans, and some places have clearly defined the scope of support for trade-in and specific subsidy rules. For example, in 2024, Shanghai formulated the detailed rules for the implementation of the "trade-in" subsidy for old cars in Shanghai, and made it clear that individual users would purchase new fuel passenger cars with the national emission standard of six B, and eligible ones would be given a one-time subsidy of 2,800 yuan.

Trade-in of consumer goods is being carried out in full swing everywhere, and listed companies have also ushered in a broad new market and development opportunities. The reporter combed and found that many listed companies have recently responded to investors’ questions on the interactive platform, clearly indicating that trade-in will bring benefits to the company’s development.

For example, Yum! Smart said that the company can provide corresponding access control and management equipment updates, such as gates, access doors and access control systems, and provide overall solutions in the process of urban renewal and renovation of old residential areas. Hefei Department Store said that the company’s top 100 electrical appliances are cooperating with a number of home appliance companies to carry out the "Trade-in Brand Festival" and will strive for more trade-in policy support in the future. Gemei said that the country has introduced a large-scale equipment renewal and consumer goods replacement action plan. This policy is unprecedented in strength, breadth and depth, which is conducive to the growth of the company’s electronic waste recycling, scrapped car recycling and power battery recycling.

However, at present, there are also some enterprises and residents who are not willing to take the initiative to update equipment and trade in old ones. Luo Zhiheng, chief economist of Yuekai Securities and dean of the research institute, believes that this is mainly due to two reasons: one is that the equipment can still be used normally, and the other is that the replacement needs to pay extra fees. In this regard, Luo Zhiheng believes that policies such as finance and currency need coordinated support to fully mobilize the enthusiasm of enterprises and residents through incentive measures. When it comes to the elimination of backward equipment, local governments and relevant departments should formulate scientific standards and implement them in an orderly manner to prevent the expectation and confidence of micro-subjects from being dampened by eagerness for success.

Editor: Wan Jianwei

Proofreading: Zhao Yan