On May 20, Baoding issued the "strictest" real estate control measures in history. Baoding a listing of residential land in the transfer conditions, the buyer in the acquisition of real estate certificate within 10 years from the date of non trading. This is also the longest time limit for housing sales nationwide. Soon after that, on May 24, Zhuhai, Guangdong Province, was also trying the "10-year-old sale" model.

This is the most stringent real estate regulation policy in history. In addition to the previous policies of purchase restriction, loan restriction and price restriction, it has started to limit sales again. Moreover, the time limit for sales is getting longer and longer, from the past 2 to 3 years to the present 10 years.

As we all know, the relationship between paint and real estate is just like that between fish and water. Its market development is closely related to the development of the real estate industry. If the real estate industry is severely damaged, the coating industry, as the upstream industry of the real estate industry, will definitely be affected. The affected enterprises are mainly engaged in the production of building decoration coatings. Baoding's most stringent real estate regulation policy is undoubtedly to pour a basin of cold water into the real estate industry when it is booming, which will have a certain negative impact on the coating industry.

In recent years, China's construction coating industry is facing great transformation pressure, which comes from many comprehensive factors, including the pressure of de stocking, the rising price of raw materials, the weak innovation ability and the increasing environmental pressure. In recent years, raw materials have been in a state of skyrocketing, and the price curve is only rising but not falling. In the face of the current situation of the continuous price rise of raw materials, in addition to a number of well-known coating enterprises in the industry, the majority of small and medium-sized coating enterprises are struggling to survive. Once the policy of Baoding is extended to the whole country, the small and medium-sized coating enterprises will have to go to the end.

It is proved from past cases that the development of architectural coatings can not be separated from the real estate industry.
From 2001 to 2011, the proportion of China's construction coating production to the whole coating production has been hovering around 30%. In different stages: from 2004 to 2006, the proportion of construction coating production decreased monotonously.

During this period, the industrial coating obtained rapid development, which led to the growth rate of the whole coating production up to 23% for three consecutive years. In 2007, affected by the financial crisis, the growth rate of coatings fell to 17.6%. Subsequently, due to the recovery of the real estate industry, construction coatings maintained a growth rate of more than 20%. From 2007 to now, the proportion of construction coating production in the whole coating production has risen steadily. By 2010, the proportion of construction coating production has reached 36.4%. However, in 2011, the growth rate of architectural coatings was only 8.45%, far lower than the growth rate of 16.4% of the coating production, so the proportion of the production of architectural coatings in the whole coating production fell to 32% in 2011.

In 2011, the production of architectural coatings reached 3.45 million tons, with a year-on-year growth rate of 8.45%. This is the first time in a decade (2002-2011) that the growth rate fell to a single digit, with a drop of 26 percentage points compared with the growth rate of 34.5% in 2010. In 2012, the market deteriorated further. In the first half of 2012, the output of large-scale construction coating enterprises was 1.63 million tons, an increase of 5% year on year. It is expected that the annual growth rate of construction coating output in 2012 will be less than 10%.

This fully shows that the fluctuation of the real estate market will quickly spread to the whole coating industry.

Baoding's real estate regulation policy stipulates that buyers are not allowed to buy or sell the real estate within 10 years from the date of obtaining the real estate certificate. If this policy is extended to the whole country, the real estate may cool down in an all-round way. For the coating industry, this is a fatal blow, and the coating market may face a shrinking crisis.

Safeguard housing policy seems to bring a glimmer of light to the coating industry

In today's paint market continues to be depressed, one of the ways to survive is to build safeguard housing in China, because it promotes the development of paint market to a large extent, which can alleviate the adverse impact of the housing market tightening policy to a certain extent.

After the issuance of China's real estate policy evaluation report in the first half of 2011, the central government plans to build 630000, 3.3 million and 5.8 million affordable housing units in 2008, 2009 and 2010 respectively. By 2011, the number had soared to 10 million units, an increase of 72.4% compared with 2010.

In recent years, the market of guarantee housing is even higher. Last year, more than 20 million sets of guarantee housing were built in China. In the next five years, a total of 60 million sets of guarantee housing will be built. The cake is not small, which brings great opportunities to the coating industry, especially the water-based paint, which is famous for environmental protection, is widely favored by people from all walks of life and is very popular in the market.

Another big help for coating industry -- characteristic town