Changes in Hong Kong stocks | Domestic housing stocks collectively declined, domestic housing sales declined in October, and Yamato indicates that the latest data does not fully reflect the impact of pre-sale reforms

The Zhitong Finance App learned that domestic housing stocks were collectively lower. As of press release, R&F Real Estate (02777) fell 4.89% to HK$0.175; C&D International Group (01908) fell 3.63% to HK$13; China Overseas Development (00688) fell 2.95% to HK$12.5; and Sunac China (01918) fell 1.22% to HK$0.405.

According to the news, Yamato released a research report saying that sales contraction in the Chinese real estate market increased in October. Contract sales of the top 100 developers based on floor area and amount fell 22% and 17% year on year respectively, further deteriorating from the 8% and 14% year-on-year declines in September, but remained roughly flat from month to month. The bank maintains a neutral view on the short-term stock price performance of the industry and continues to prefer leading state-owned enterprises.

The bank believes that the drag after the introduction of the pre-sale reform on August 28 has only just begun. The year-on-year sales decline continues to expand. This partly reflects that developers are slowing down construction and promotion to preserve cash flow, while the current decline only reflects a small portion of the final impact of the reform. The bank believes that the latest data does not fully reflect the impact of the pre-sale reform, nor is it expected that short-term relief measures will be sufficient to offset the drag; however, the 20% share price adjustment since September has partially reflected related factors.