Hong Kong Stock Market News | China Evergrande rises nearly 7%, leading the real estate sector. Evergrande Shenzhen Company delivered over 6,000 units in August, and first-tier cities are expected to stabilize in the fourth quarter.

According to the Zhongtong Finance APP, some domestic real estate stocks surged in early trading. As of the time of writing, China Evergrande (03333) rose 6.94% to HKD 0.385; Sunac China (01918) rose 3.88% to HKD 2.14; Country Garden (03377) rose 2.35% to HKD 0.435; and Agile Group (02007) rose 1.15% to HKD 0.88.

CICC pointed out that since September, various cities have introduced a series of policies to optimize the real estate market, including recognizing houses without recognizing loans, lowering the interest rates of existing housing loans, and optimizing or lifting purchase restrictions. With the arrival of the traditional peak season of "Golden September and Silver October", as the loose policies in various regions are gradually implemented, the bank has observed that developers are increasing their efforts to promote sales in first-tier and core second-tier cities. Coupled with the support of policies for improving demand, the bank expects that sales in first and second-tier cities will stabilize in September, and the real estate market in first-tier cities will be the first to stabilize and recover in the fourth quarter, with sales slightly rebounding.

Huaxi Securities stated that in the real estate sector, policies are beginning to show results, and sales of new homes have significantly rebounded. In the second half of September, the average daily sales area of commercial housing in 30 cities was 398,300 square meters, a MoM increase of 50.65% and a YoY decrease of 32.76%. In terms of city levels, the average daily sales area of first, second, and third-tier cities increased by 126.82%, 21.90%, and 53.29% MoM, respectively. In addition, the WeChat public account "Evergrande Real Estate in Shenzhen" announced yesterday that as of now, Evergrande Group's Shenzhen company has delivered over 6,000 units from January to August this year.