The Zhitong Finance App learned that domestic housing stocks continued to decline, with many stocks falling by more than 3%. As of press release, Zhongjun Group Holdings (01966) fell 5.77% to HK$0.49; R&F Real Estate (02777) fell 2.26% to HK$1.3; Times China (01233) fell 1.92% to HK$0.51; and China Overseas Hongyang (00081) fell 1.9% to HK$4.12.

According to the news, S&P published a report saying that the weak state of property markets in third- and fourth-tier cities will cause the real estate market to recover in an “L-shaped” trend. It is estimated that real estate sales in Tier 1 and 2 cities will achieve a moderate increase of about 3% this year, while sales in Tier 3 and 4 cities may shrink by about 10%. According to the report, if residential sales in third- and fourth-tier cities fall by 20% to 30% this year, sensitivity analysis shows that 40% to 60% of rated developers may face rating pressure.