Source: Securities Times
Author: Mei Shuang
On May 17, US stocks, a Chinese real estate concept stock, rose before the market.$Fangdd Network (DUO.US)$At one point, it rose more than 400% before the market;$KE Holdings (BEKE.US)$At one point, it rose more than 9% before the market.
On May 17, the People's Bank of China and the China General Administration of Financial Supervision and Administration issued a document stating that the minimum down payment ratios for the first housing commercial loan and the second housing commercial loan were adjusted to no less than 15% and not less than 25%, respectively. Strong efforts on the policy side injected a “strong agent” into the market, and the market reacted positively.
In terms of the A-share market, more than 20 stocks in the real estate sector, including Vanke A, Greenland Holdings, Rongan Real Estate, and Jindi Group, rose and stopped during the intraday period. In the real estate services sector, Tefa Services, I Love My Family, and Nandu Property had the highest gains.
In terms of Hong Kong stocks, domestic housing stocks rose collectively. Sunac China rose more than 25%, Agile Group rose more than 24%, Vanke Enterprise rose more than 19%, and China Jinmao, Midea Real Estate, R&F Real Estate, Longhu Group, and Yuexiu Real Estate rose more than 10%.
Property management stocks rose strongly. Evergrande Property rose more than 34%, Hejing Yohuo rose more than 18%, Ocean Services rose more than 17%, Pujiang China rose more than 16%, Sunac Services, Times Neighborhood, Good Kaisa, and Country Garden Services rose.
On May 17, the central bank issued three major new real estate policies in a row, involving reducing down payments, commercial loan interest rates, and provident fund loan interest rates. Among them, in terms of commercial loan interest rates, the lower limit of the national commercial personal housing loan interest rate policy for the first housing unit and the second housing unit was abolished.
In terms of provident fund interest rates, with effect from May 18, 2024, interest rates on personal housing provident fund loans were lowered by 0.25 percentage points, interest rates for the first personal housing provident fund loan under 5 years (including 5 years) and 5 years or more were adjusted to 2.35% and 2.85% respectively, and interest rates for second personal housing provident fund loans under 5 years (including 5 years) and above were adjusted to no less than 2.775% and 3.325%, respectively.
In terms of reducing the down payment, for households with loans to purchase commercial housing, the minimum down payment ratio for commercial personal housing loans for the first home 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%.
Guolian Securities believes that with the gradual easing of policies, market confidence is expected to be boosted, leading to a recovery in sales. At the same time, housing companies' high-cost projects are gradually being digested, and gross margins are expected to bottom out and rebound. The industry base is expected to be completed at an accelerated pace, and sector valuations may be gradually repaired. It is recommended to focus on central state-owned enterprises with abundant land reserves and unobstructed financing channels in the core region, as well as high-quality housing enterprises with the ability to shape improved products.
Editor/jayden