Hong Kong Stock Market Update | Property stocks collectively decline, SHIMAO GROUP drops more than 8% at one point, SINO-OCEAN GP drops more than 3%.
Zhitong App has learned that the real estate stocks have collectively fallen in the morning session. As of the time of writing, Shimao Group has dropped 6.9%, with a price of HKD 0.81.
Zhitong App learned that CN Mainland Real Estate fell collectively in early trading. As of the time of publication, SHIMAO GROUP (00813) fell 6.9% to HKD 0.81; SINO-OCEAN GP (03377) fell 3.39% to HKD 0.57; SUNAC (01918) fell 2.83% to HKD 2.75; and R&F Properties (02777) fell 2.19% to HKD 1.34.
In terms of news, rating agency Fitch Ratings expects that the sales volume of China's real estate market will continue to decline next year, but the decline will narrow to 0-5%. On the policy front, Fitch Ratings expects the Chinese government to continue to frequently introduce supportive policies with the goal of stability. However, Fitch Ratings believes that sales performance is still the most important driver of the creditworthiness of real estate companies. Overall, the sales performance of private real estate companies is more easily influenced by market sentiment.
Nomura released a research report stating that the mainland property market is currently weak, and banks are finding it difficult to assist developers through loans. A more feasible method is to subscribe to bonds or provide financing through innovative financial instruments. The bank believes that positive news in recent days will continue to stimulate the price of CN Mainland Real Estate in the short term. However, it is difficult for the stock price to continue to outperform until the real estate market clearly emerges from the bottom. The bank remains optimistic about high-quality developers.