Hong Kong Stock Concept Tracking | New Property Market Policies Released in Many Places, Agencies Are Optimistic About Repairing the Bottom Valuation in the Domestic Housing Sector (with concept stocks)

The Zhitong Finance App learned that recently, real estate-related policies have been intensively introduced at the local level, and cities such as Beijing, Shanghai, Chengdu, and Xi'an will all release favorable policies before September.

“By adjusting purchase restriction policies and down payment ratios for loans, various regions have further unleashed the potential for buying homes. At the same time, various regions have raised the amount of housing provident fund loans, lowered the threshold for buying a house, and reduced the cost of buying a home through various subsidies, including interest rates on housing provident fund loans and subsidies for selling old and new ones.” Li Yujia, chief researcher at the Guangdong Housing Policy Research Center, said.

Judging from the pace of policy introduction, after Beijing and Shanghai introduced policies one after another, Chengdu, Xi'an and other places followed up, forming a relay effect of linkage and continuous follow-up between first-tier and second-tier cities, conveying a positive signal to the market that “there is still room for policy” and boosting market confidence and expectations.

The favorable policies in various regions were released at an accurate time, saving energy for the “gold nine silver ten” property market's traditional peak season.

Open Source Securities recently released a research report saying that in the first half of the year, the real estate industry was still in a fragmented pattern of weak sales repair and supply contraction, but the overall policy side was relaxed, the process of controlling growth and removing inventory was still accelerating, and the performance of high-quality housing companies continued to recover. Recommended targets: (1) high-quality real estate enterprises with good urban fundamentals and strong product strength; (2) commercial real estate operators that place equal emphasis on commercial operations and asset management, while benefiting from real estate recovery and consumption promotion policies; (3) high-quality property management targets with outstanding service quality under the “good house, good service” policy.

Guoxin Securities released a research report saying that real estate sales volume and price improved marginally in July, and the trend of improving fundamentals continued to accumulate upward momentum in real estate stocks. Considering that the current discount margin for real estate stocks is sufficiently or even excessively pessimistic about future housing price declines, we reaffirm that real estate stocks have value space and stock prices are at the bottom of the medium term. It is recommended to choose targets that are active in land acquisition, reasonable layout, and sufficient discount.

Hong Kong stocks related to the domestic housing sector:

China Overseas Development (00688), China Resources Real Estate (01109), C&D International (01908), Yuexiu Real Estate (00123), Xincheng Development (01030), Vanke Enterprise (02202), Longhu Group (00960), etc.