Understanding the Market | Chinese Real Estate Stocks Rise Collectively as Shenzhen Introduces New Housing Policies to Boost Demand; Institutions Claim Policy Strength Exceeds That of Beijing and Shanghai
Chinese property stocks rose collectively in the morning session, with Country Garden up 10.42%, CIFI HOLD GP up 4.05%, CHINA VANKE up 3.07%, and SINO-OCEAN GP up 2.52%. Shenzhen released new housing market policies on September 5, relaxing purchase restrictions in non-core areas, and commercial loan rates will no longer differentiate between first and second homes. CITIC Securities pointed out that this policy is stronger than those in Beijing and Shanghai, aiming to stimulate housing demand in peripheral areas. The overall performance of real estate sales still relies on the implementation of policies to improve the supply-demand relationship
According to Zhitong Finance APP, Chinese property stocks rose collectively in early trading. As of the time of writing, Country Garden (02007) rose by 10.42% to HKD 0.53; CIFI HOLD GP (00884) rose by 4.05% to HKD 0.231; CHINA VANKE (02202) rose by 3.07% to HKD 5.38; SINO-OCEAN GP (03377) rose by 2.52% to HKD 0.122.
In terms of news, following Beijing and Shanghai, Shenzhen released significant new real estate policies late at night on September 5. CITIC Construction Investment stated that this new real estate policy has significantly relaxed purchase restrictions in non-core areas (all areas except for Futian District, Nanshan District, and Bao'an District's Xin'an Street), and commercial loan interest rates will no longer differentiate between first and second homes. Compared to the relaxation of restrictions, Shenzhen's new policy is stronger than the new policies introduced in Beijing and Shanghai in August.
CICC pointed out that the follow-up adjustments to Shenzhen's real estate policies align with previous expectations. The three super high-energy cities have focused on stimulating multi-home purchasing demand in peripheral areas during this round of adjustments, with Shenzhen's purchase restriction conditions being more lenient than those in Beijing and Shanghai. Looking ahead, the continued improvement in overall real estate sales performance still depends on the effective implementation of policies such as the collection of existing housing and the transformation of urban villages, which will have a sustained positive impact on supply and demand, thereby creating a synergistic effect with the sentiment boost brought by the adjustment of purchase restriction policies in leading cities. It is recommended to continue monitoring policy developments
