Evergrande rose 80% at one point! Why are Hong Kong property stocks soaring again?

Crazy Surge! Hong Kong Real Estate Stocks Soar Again, Leading the Way with "Three Immortals," Market Goes Wild Once Again!

On Wednesday, September 6th, Hong Kong real estate stocks collectively surged, with China Evergrande showing astonishing momentum, rising more than 80% at one point, with a trading volume exceeding HK$400 million. Country Garden, which had been on a three-day rise, also surged more than 70%, while Agile Group, which had recently escaped the "immortal stocks" category, rose nearly 30%, although the gains have since retreated. Within the sector, more than ten individual stocks saw double-digit increases.

After experiencing an initial rise due to policy stimulation and subsequent decline in market sentiment, real estate stocks have once again demonstrated violent growth. What exactly has happened?

In simple terms: the market is once again anticipating more stimulus policies for the real estate sector in the future!

Following the release of major policies in the Chinese property market and the inclusion of the four first-tier cities (Beijing, Shanghai, Guangzhou, and Shenzhen), the China Securities Journal further stated in its front-page article this morning, "City-specific policies have been implemented to lift restrictions on non-essential home purchases and sales, supporting the recovery of the real estate market," which has once again stimulated the market.

Currently, it is urgent to further increase policy support on the sales side of the real estate market in order to unleash the potential demand for both rigid and improved housing that has been suppressed by restrictive policies.

Recently, clear signals of relaxed policies in the real estate market have been released. Various central government departments have optimized and adjusted several nationwide home purchase policies, including lowering the minimum down payment ratio and interest rate for second-home mortgages, reducing interest rates for first-home mortgages, promoting the implementation of the policy of "recognizing houses without verifying loans," and extending the deadline for tax refunds on home purchases. These measures reflect strong support from the central government for reasonable housing demand at present.

Currently, Jiaxing and Shenyang have already lifted purchase and sales restrictions. To further boost the real estate market and stabilize the confidence and expectations of potential homebuyers, restrictive policies on real estate purchases and sales in non-first-tier hot cities can be lifted on a city-specific basis as soon as possible.

It is also worth noting that recently, there have been reports that China is planning to introduce more proactive real estate support policies, which may be announced by regulatory agencies in the coming weeks.

Possible policy measures include: lifting current home purchase restrictions in non-core areas of major cities such as Beijing, Shanghai, and Shenzhen, as well as gradually lifting price restrictions on new homes. However, this news is still market speculation and has not received a response from relevant institutions such as the Housing and Urban-Rural Development Bureau.

Meanwhile, in its latest research report, J.P. Morgan stated that the Chinese real estate sector has benefited from recent measures such as "recognizing houses without verifying loans" and reducing down payment ratios. With strong sales data expected in the coming weeks, they believe that real estate stocks will remain strong in the short term. Additionally, sales and policies are expected to be the main driving forces behind the performance of real estate stocks for the remainder of this year.