Understanding the Market | Domestic property stocks rebounded in early trading, with Sunac China rising over 6%. Several first-tier cities are working on stabilizing the real estate market to halt the decline
Chinese property stocks warmed up in the morning session, with Sunac China rising over 6%. Several first-tier cities are conducting research on policies related to stabilizing the real estate market. The government work report has for the first time included stabilizing the property market in the requirements for economic and social development. Ping An Securities pointed out that housing consumption and real estate investment have not yet stabilized in the short term, and more policy support is needed, looking forward to measures such as loosening purchase restrictions in core cities, interest rate cuts, and lowering the provident fund interest rate
According to the Zhitong Finance APP, domestic property stocks rebounded in the morning session. As of the time of publication, Jianfa International Group (01908) rose by 7.29% to HKD 15.9; Midea Real Estate (03990) increased by 7.22% to HKD 4.01; Sunac China (01918) climbed by 6.2% to HKD 1.37; and Country Garden (02007) went up by 5.26% to HKD 0.4.
On the news front, according to Securities Times, the 2025 government work report has for the first time included stabilizing the real estate market in the overall requirements for economic and social development. Reporters learned that several first-tier cities are conducting research and preparation work related to policies aimed at stopping the decline and stabilizing the real estate market. Among them, relevant departments in Wuhan stated that they are conducting policy research and preparation work, and will implement measures in a timely manner based on market realities to continuously promote the further stabilization of the real estate market.
Ping An Securities pointed out that the introduction of Trump's "reciprocal" tariff policy may impact domestic exports in the short term. Under the backdrop of stabilizing the economy and growth, there may be a need for more efforts in consumption and investment, with housing consumption being the largest component of consumption and real estate investment also being an important part of investment. Given that short-term housing consumption/investment has not yet stabilized, more policies may be needed to boost it. What real estate policies are worth looking forward to in the future: there is still room for further relaxation of purchase restrictions in core cities; further interest rate cuts and reductions in provident fund rates to lower the actual mortgage rates for residents; and further unblocking policy bottlenecks related to storage and urban renewal to continuously expand housing demand