Understanding the Market | Chinese Property Stocks Rapidly Surge During Trading, Institutions Claim Real Estate is an Important Support for Domestic Demand, Policy Measures May Be Implemented

Zhitong
2025.04.09 03:09
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During the trading session, domestic property stocks experienced a rapid surge. As of the time of publication, Sunac China rose by 11.11%, trading at HKD 1.50; R&F Properties increased by 6.52%, trading at HKD 0.98; CIFI HOLD GP climbed by 5.24%, trading at HKD 0.221; and COUNTRY GARDEN rose by 5.06%, trading at HKD 0.415. On the news front, on April 8th, the General Office of the Ministry of Finance and the General Office of the Ministry of Housing and Urban-Rural Development issued a notice to carry out the 2025 central financial support for urban renewal actions, with the central government providing fixed subsidies to selected cities. On the same day, People's Financial News reported that several first-tier cities are studying and reserving policies and measures to further stabilize the real estate market. Guotai Junan Securities pointed out that for the industry, real estate is an important support for domestic demand. We expect to benefit from the liquidity released by future interest rate cuts and reserve requirement ratio reductions, while core cities still have room for policy easing adjustments to promote the stabilization of the housing market. For property companies, those pursuing safety and profitability, and able to continuously acquire land in core areas of core cities, may be the first to emerge from the industry's low point. We recommend property companies that focus on improving products, layout in core first- and second-tier cities, and have a safe and stable financial structure

According to Zhitong Finance APP, domestic property stocks experienced a rapid surge during trading. As of the time of publication, Sunac China (01918) rose by 11.11% to HKD 1.5; R&F Properties (02777) increased by 6.52% to HKD 0.98; CIFI HOLD GP (00884) climbed by 5.24% to HKD 0.221; and COUNTRY GARDEN (02007) went up by 5.06% to HKD 0.415.

On the news front, on April 8th, the General Office of the Ministry of Finance and the General Office of the Ministry of Housing and Urban-Rural Development issued a notice to carry out the 2025 central financial support for urban renewal actions, with the central government providing fixed subsidies to selected cities. On the same day, People's Financial News reported that several first-tier cities are studying and reserving policies and measures to further stabilize the real estate market.

Guolian Minsheng Securities pointed out that for the industry, real estate is an important support for domestic demand. We expect to benefit from the liquidity released by future reserve requirement ratio cuts and interest rate reductions. At the same time, core cities still have room for policy easing adjustments to promote the stabilization of the housing market. For property companies, those pursuing safety and profitability, and able to continuously acquire land in core areas of core cities, may be the first to emerge from the industry's low point. We recommend property companies that focus on improving products, layout in core first- and second-tier cities, and have a safe and sound financial structure

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