Understanding the Market | Domestic property stocks generally fell, Sunac China dropped over 10%, Ronshine China fell over 7%

Zhitong
2025.01.06 02:17
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Chinese property stocks generally fell in early trading. As of the time of publication, Sunac China dropped 10.76%, trading at HKD 1.99; Ronshine China fell 7.04%, trading at HKD 0.33; China Oceanwide Holdings decreased by 5.37%, trading at HKD 0.229; and Agile Group Holdings declined 4.29%, trading at HKD 0.67. SINOLINK SECURITIES pointed out that the year-on-year decline in sales for property companies in 2024 continues to narrow, with a slight decrease in December compared to the same month last year. Additionally, the supply and transaction volume of residential land in 300 cities in 2024 both fell by over 20%. As sales continue to stabilize, the land market is also under pressure. The firm believes that at this point, the real estate sector should pay attention to potential future reserve requirement ratio cuts, interest rate reductions, stronger policy catalysts, and the ongoing implementation of urban village renovations and land acquisitions. Ping An Securities stated that the volume and price adjustments in the real estate market will continue in 2024, and national investment and sales will still be under pressure in 2025. The firm believes that as the overall market and sector adjustments intensify, it may indicate that layout opportunities are gradually emerging: short-term transactions in key cities remain high, and there is a possibility of a slight spring rebound in March in key cities and stabilization in some cities; if the real estate market weakens further, March and April may also welcome a policy game window

According to Zhitong Finance APP, domestic property stocks generally fell in early trading. As of the time of publication, Sunac China (01918) dropped 10.76% to HKD 1.99; Ronshine China (03301) fell 7.04% to HKD 0.33; China Oceanwide Holdings (03377) decreased by 5.37% to HKD 0.229; and Agile Group (03383) declined 4.29% to HKD 0.67.

SINOLINK SECURITIES pointed out that the year-on-year decline in sales of real estate companies in 2024 continues to narrow, with a slight decrease in December compared to the same month last year. In addition, the supply and transaction volume of residential land in 300 cities in 2024 both fell by more than 20%. As sales continue to stabilize, the land market is also under pressure. The firm believes that at this point, the real estate sector should pay attention to potential future reserve requirement ratio cuts, interest rate reductions, stronger policy catalysts, and the ongoing implementation of urban village renovations and land acquisitions.

Ping An Securities stated that the volume and price of the real estate market will continue to adjust in 2024, and national investment and sales will still be under pressure in 2025. The firm believes that as the overall market and sector adjustments intensify, it may indicate that layout opportunities are gradually emerging: short-term transactions in key cities remain high, and there is a possibility of a small spring rebound in March for key cities and stabilization in some cities; if the real estate market weakens subsequently, March and April may also welcome a policy game window period

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