Hong Kong Stock Concept Tracking|Real Estate Whitelist Credit Scale Expansion Facilitates Industrial Chain Decline and Stabilization (with concept stocks)

At the press conference on October 17, according to the General Administration of Financial Supervision, as of October 16, “white list” real estate projects have been approved for loans of 2.23 trillion yuan. It is expected that by the end of the year, the credit scale for whitelisted projects will be increased to 4 trillion yuan, all commercial housing project loans will be included in the white list, and the time for transferring loan funds to project supervision accounts will be accelerated.

CITIC Construction Investment pointed out that the expansion of the scale of whitelist credit will further promote the completion and delivery of commercial housing already sold, which will benefit the increase in business volume and increase the speed of repayment of upstream and downstream enterprises in the production chain.

CICC issued an article stating that on the morning of October 17, the State Information Office held a press conference to introduce the situation relating to promoting the steady and healthy development of the real estate market. The transformation of 1 million units of monetized resettlement in urban villages may help accelerate the release of demand, but the pace of implementation of the policy remains to be seen.

The expansion of the “white list” support amount for this project will help further mitigate delivery risks, and the market is still looking forward to further incremental measures to “stop the decline and stabilize the real estate market”. The sector may fluctuate or intensify in the short term, but consideration of policies is still in the process of being strengthened. We believe that real estate stocks may still be in the layout period for some time to come.

In terms of stock selection, along with market concerns that may balance policy expectations with fundamental verification, CICC believes that priority is given to leading companies that have the potential to recover development investment and that still have some room to increase their market share in the long term; if subsequent policies exceed expectations, they can take the opportunity to invest in more flexible targets.

Real estate-related industry chain enterprises:

China Overseas Development (00688), C&D International Group (01908), Yuexiu Real Estate (00123), Greentown China (03900), Sunac China (01918), Longhu Group (00960), Ocean Group (03377), Vanke Enterprise (02202), China Resources Land (01109), Xuhui Holdings (00884), etc.;

Property management companies: China Resources Vientiane Life (01209), Poly Property (06049), CNOOC Properties (02669), Midea Real Estate (03990), etc.

Housing agency: Seashell-W (02423), Country Garden Service (06098)