The Zhitong Finance App learned that domestic housing stocks generally fell in early trading. As of press release, Hejing Taifu Group (01813) fell 6.25% to HK$0.6; Sunac China (01918) fell 5.88% to HK$1.13; R&F Real Estate (02777) fell 2.42% to HK$1.21; China Overseas Development (00688) fell 1.66% to HK$16.62.

According to the news, Dongwu Securities released a research report saying that the month-on-month data for new and second-hand housing declined last week, and the year-on-year increase continued to narrow. The real estate market cooled somewhat in the second quarter after the backlog of housing demand from the epidemic was fully released in the first quarter. It is expected that the year-on-year data will be under pressure in June due to the high base in 2022. Recently, however, the purchase restriction policies of high-energy cities have been relaxed, and the bank believes that the annual sales area growth rate can still be corrected.

S&P published a report that it is expected 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.