Market Insight | Mainland Real Estate Stocks Strengthen in Early Trading, Real Estate Policies Still Have Room for Further Efforts, Institutions Point Out Overseas Interest Rate Cuts Expected to Release Housing Demand
CN Mainland Real Estate stocks strengthened in the morning session, with Sunac China Holdings up 9.23%, Sunac China Holdings up 6.52%, and Greentown China Holdings up 5.55%. CITIC Securities pointed out that there is still ample policy space, and if demand-side policies are introduced, it may reverse the market's downward trend. The strong expectation of a Fed rate cut may lead to a decline in domestic interest rates, releasing housing demand. It is recommended to focus on leading real estate developers such as Greentown China Holdings and Yuexiu Property
According to the Zhitong Finance and Economics APP, mainland real estate stocks strengthened collectively in the morning session. As of the time of publication, Sunac China Holdings (02777) rose by 9.23% to HKD 0.71; Sunac China Holdings (01918) rose by 6.52% to HKD 0.98; Greentown China Holdings (03900) rose by 5.55% to HKD 6.09; and Shimao Group (00813) rose by 5.26% to HKD 0.5.
On the news front, CITIC Securities believes that there is no sign of a spontaneous market bottoming out, but there is still ample policy space. There is room for action in mortgage interest rates, provident fund loan quotas, personal income tax deduction for mortgage interest, housing inventory management, and home purchase settlement. The bank believes that if demand-side policies are introduced, it is expected to reverse the market's downward trend. Earlier market reports suggested that China may reduce interest rates on existing home loans as early as September. Informed sources said that some home loan rates could be immediately reduced by as much as 50 basis points.
In addition, the Federal Reserve made a significant 50 basis point rate cut and hinted at another 50 basis point cut later this year. Huafu Securities previously pointed out in a research report that there is a strong expectation of overseas interest rate cuts, which may open up further room for domestic interest rate cuts, further releasing housing demand. Against the backdrop of improved global liquidity and continued loose real estate policies, it is recommended to focus on leading real estate developers such as Greentown China Holdings and Yuexiu Property