Understanding the Market | Most Chinese property stocks rose, SINO-OCEAN GP increased by over 12%, LOGAN GROUP rose by over 11%
Chinese property stocks generally rose, with SINO-OCEAN GP up 12.5% to HKD 0.153, LOGAN GROUP up 11.58% to HKD 1.06, and SHIMAO GROUP up 8.97% to HKD 0.425. Dongfang Securities pointed out that although the new housing market is under pressure, policy adjustments and expectations of interest rate cuts by the Federal Reserve provide confidence for industry recovery, and stock prices are expected to rebound in the future
According to Zhitong Finance APP, most mainland property stocks rose. As of the time of publication, SINO-OCEAN GP (03377) rose 12.5% to HKD 0.153; LOGAN GROUP (03380) rose 11.58% to HKD 1.06; SHIMAO GROUP (00813) rose 8.97% to HKD 0.425; and Sunac China (01918) rose 4.22% to HKD 1.73.
On the news front, Dongfang Securities pointed out that since Q2 of this year, the trend of weakening volume and price in the new housing market has intensified the pressure for a full-year stabilization. Starting in August, Beijing, Shanghai, and Shenzhen have successively implemented "city-specific policies," which have a short-term stimulating effect on market transaction volume and further strengthened confidence in the industry's medium- to long-term recovery path. There is still considerable policy space ahead, including optimizing urban village and dilapidated housing renovation policies through urban renewal initiatives, as well as policies for the acquisition of existing housing. Additionally, the increased expectations for interest rate cuts by the Federal Reserve have opened up monetary easing space for China.
The firm believes that at this stage, the reduction in industry risk assessment is the main reason driving the recovery of real estate stocks. The introduction of policies or the enhancement of policy expectations may temporarily increase the slope. The significant decline in real estate stock prices in previous years was due to the impact on the numerator exceeding that on the denominator; currently, the real estate sector has entered a new bottoming phase, with industry risk assessments gradually decreasing, and the impact on the denominator exceeding that on the numerator, which will lead to a rebound in future stock prices. The introduction of policies or the enhancement of policy expectations may temporarily increase the slope
