Expectations of a US interest rate cut are rising, and with the Third Plenum next week, mainland real estate stocks performed well this morning. Shimao Group (00813.HK) rose nearly 23% at one point, up by 0.86 yuan, now at 0.82 yuan, up 17.14%, with a turnover of 0.113 billion shares and an investment of 91.0453 million yuan. Seazen (01030.HK) is presently at 1.5 yuan, up 7.91%; Agile Group (03383.HK) is presently at 0.55 yuan, up 7.84%; Greentown China (03900.HK) is presently at 6.58 yuan, up 5.45%.
Among the blue chip mainland real estate stocks, Longfor Group (00960.HK) is presently at 11.4 yuan, up 7.26%; China Resources Land (01109.HK) is presently at 27.9 yuan, up 4.69%; China Overseas (00688.HK) is presently at 14.1 yuan, up 4.91%.
China International Capital Corporation Limited has released a research report stating that the introduction of a series of demand-side real estate policies since May 17th has improved trading volumes in the second-hand market, overall plateau in listing volumes, and a shrinking decline in house prices. Looking forward, given that the demand release typically has a pulsating characteristic after policy adjustments such as purchasing and loan restrictions, it is necessary to continue to pay attention to whether policies can further exert force on the macroeconomic and real estate storage measures as well as the prerequisites for the continuation of the trading volume and listing volume decline trend or the house price inflection point.
CICC suggests that, from a short-term configuration perspective, it is recommended to allocate high-quality stocks with strong business flexibility and low risk of retreat, including China Merchants Shekou Industrial Zone Holdings (001979.SZ), Hangzhou Binjiang Real Estate Group (002244.SZ), Zhuhai Huafa Properties (600325.SH) among A-shares, and China Overseas, China Resources Land, and Yuexiu Property (00123.HK) among H-shares. In terms of property management sectors, considering the valuation price-earnings ratio, it is recommended to invest in Greentown Ser (02869.HK), China Res Mixc (01209.HK), China OVS PPT (02669.HK), Poly PPT Ser (06049.HK), and CCRE Ser (02602.HK).