On May 27th, Greentown China fell nearly 4%, China Jinmao fell nearly 3%, Zhongjun Group and Lujing China fell more than 2%, and Metro Development, Country Garden Holdings, R & F Real Estate and Longfor Group all fell more than 1%.
Morgan Stanley issued a report saying that while continued easing measures should reduce systemic risk, the real estate industry still faces weak sales and liquidity pressure this year, cutting profit forecasts for Chinese property stocks by an average of 15 per cent and 17 per cent this year and next. To reflect falling incomes and gross profit margins.
The report also pointed out that real estate stocks will continue to fluctuate in the range, A shares will be more sensitive to loose policies, while Hong Kong stocks will be more sensitive to downside risks. It is recommended to invest in stocks selectively, preferring China Resources Land and COSCO.