Central Bank: Abolish the lower interest rate policy for commercial personal housing loans for first and second housing units at the national level.
The People's Bank of China decided that starting from May 18, 2024, interest rates on personal housing provident fund loans will be lowered by 0.25 percentage points, the interest rates for the first set of personal housing provident fund loans under 5 years (including 5 years) and 5 years or more will be adjusted to 2.35% and 2.85% respectively, and the interest rates for second personal housing provident fund loans under 5 years (including 5 years) and above will be adjusted to no less than 2.775% and 3.325%, respectively.
The minimum down payment ratio for commercial personal housing loans for the first housing unit was adjusted to not less than 15%, and the minimum down payment ratio for commercial personal housing loans for the second housing unit was adjusted to not less than 25%.
A national video conference on how to effectively secure housing was held in Beijing on the 17th. He Lifeng, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, attended the conference and delivered a speech.
He Lifeng stressed that it is necessary to carefully study and understand the spirit of General Secretary Xi Jinping's important speech, thoroughly implement the arrangements at the Politburo Central Committee meeting, deeply understand the popular and political nature of real estate work, continue to adhere to city-specific policies, fight the battle to deal with the risk of unfinished commercial housing, and solidly push forward key tasks such as securing housing and digesting the stock of commercial housing.
Changjiang Securities believes that it may be too early to reverse the transaction cycle. The relaxation of trading policies may still be at the level of valuation repair, but the final value of high-quality housing enterprises is likely to be expected. The medium- to long-term pillar position of the industry and the two-track system will not change. The new housing market is still large at a scale of several trillion to 10 trillion dollars. The competitive advantage of leading players strengthened after the supply side cleared, and the single-digit net interest rate for steady state manufacturing is always there. Well, the current market value is supported in the medium to long term.
Changjiang Securities suggests focusing on supply-side optimization targets with core assets, as well as state-owned central enterprise property leaders and high-quality contract construction leaders with stable cash flow characteristics. Hong Kong stocks may be more flexible than A-shares.
Companies related to the real estate sector:
$SUNAC (01918.HK)$,$LONGFOR GROUP (00960.HK)$,$SINO-OCEAN GP (03377.HK)$,$CHINA VANKE (02202.HK)$,$C&D INTL GROUP (01908.HK)$,$YUEXIU PROPERTY (00123.HK)$,$CHINA RES LAND (01109.HK)$etc.; ($Mainland Real Estate (BK1234.HK)$)
Property management company:$CHINA RES MIXC (01209.HK)$,$POLY PPT SER (06049.HK)$,$MIDEA REAL EST (03990.HK)$,$EVERG SERVICES (06666.HK)$etc. ($Mainland Property Management (BK1220.HK)$)
Real estate agency:$BEKE-W (02423.HK)$,$CG SERVICES (06098.HK)$. ($Real Estate Agent (BK1089.HK)$)
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