The call for a reduction in the interest rates of existing house loans has resurfaced. Institutions claim that if the interest rates of existing house loans are adjusted, both stocks and bonds will benefit.

Recently, there has been a strong call in the market for a reduction in the interest rates of existing house loans. GF Securities believes that if the interest rates of existing house loans are adjusted, both stock and bond assets will benefit. For bond assets, this process may be accompanied by interest rate cuts / reductions in deposit rates, which is beneficial for the downward movement of interest rate curves; for equity assets, a decrease in the central risk-free interest rate is advantageous for supporting valuations. Also, the adjustment of existing house loan rates is an important signal of counter-cyclical policy efforts, which helps to stabilize risk preferences. Furthermore, the adjustment of existing house loan rates is conducive to stabilizing consumption, a current major economic weak point, and thus helps to repair fundamental expectations.

2. Over 400 old houses have been ordered for the old-for-new program in Shanghai, and the subsequent participation entities will be expanded to provide innovative financial products.

The Shanghai Real Estate Research Institute, the Shanghai Real Estate Industry Association, and the Shanghai Real Estate Brokerage Industry Association jointly held a topic review meeting on the research report "Further Advancing the "Old-for-New" Work of Commercial Housing in the New Situation". Jiang Weiru, Secretary-General of the Shanghai Real Estate Industry Association, introduced that 27 developments in Shanghai that have participated have formed 406 ordered sets since the start of the program, accounting for about 20% of the market transactions. He stated that the next key focus of the work will mainly include three aspects: first, expanding the participation entities, with banks and other financial institutions actively participating and providing innovative financial products and exclusive service channels; second, upgrading the Leju New Home Purchase Platform to the 2.0 model, optimizing the "help sell model", and promoting "city-wide promotion, priority sales". And third, special events have been launched in Minhang District, and will be successively extended to various districts, in order to deepen the "Old-for-New" housing program in each district. The association will coordinate with the industry forces to promote the linkage among real estate enterprises, brokerage institutions, financial institutions, home swappers, and platforms, and promote the formation of a new trading model in this new situation.

3. China Real Estate News: Do a good job in the real estate market with a broader vision and thinking.

A commentary article by the China Real Estate News pointed out that for the current real estate market, there is a need to further comprehend the spirit of the Ministry of Housing and Urban-Rural Development's 'fully empowering cities to control the real estate' proposed at the beginning of the year, and to further make good use of the policy toolbox. Locally, it is necessary to stimulate market vitality through reform, guide market expectations through policies, clarify investment directions through planning, regulate market behavior through the rule of law, and further promote the better integration and effectiveness of an 'effective market' and a 'promising government'.

4. Dezhou, Shandong: Buyers of foreclosed houses can withdraw the housing provident fund of themselves and their spouses.

On September 19th, the Housing Provident Fund Management Center of Dezhou City, Shandong Province, issued the "Implementation Rules for the Management of the Housing Provident Fund in Dezhou City in 2024" and the "Implementation Rules for the Individual Housing Loans Management of the Housing Provident Fund in Dezhou City in 2024". The main revisions of the "Implementation Rules for the Management of the Housing Provident Fund in Dezhou" include: adding the business type of withdrawing provident fund for paying the first home down payment. When purchasing a first-time newly-built commercial house in the administrative areas of Dezhou city (including Decheng District, Tianqu New Area, Lingcheng District, and various counties and district), the housing provident fund can be withdrawn to pay for the first home down payment. The person who makes the withdrawal can be the homebuyer or their direct relatives (spouse, parents, children). This policy is tentatively implemented until December 31, 2024. Purchasing foreclosed houses can withdraw the housing provident fund of the buyer and their spouse.

5. Kaifeng, Henan: The maximum loan amount for housing provident fund has been increased from 1 million yuan to 1.2 million yuan.

Kaifeng City in Henan Province recently issued a notice on adjusting the housing provident fund loan policy. Kaifeng City will adjust the maximum loan amount for housing provident fund. For employees who contribute housing provident fund in Kaifeng City and purchase self-occupied housing, the maximum loan amount for housing provident fund has been increased from 1 million yuan to 1.2 million yuan, while not exceeding 80% of the total purchase price.

6. About 130 cities have carried out the policy of "renovating old houses with new ones", and the policy effects are gradually becoming apparent.

The policy of "renovating old houses with new ones" for housing is continuously being optimized and expanded. According to the monitoring of Zhongzhi Research Institute, as of September 17th, about 130 cities have carried out relevant work on "renovating old houses with new ones". The policy effects in some cities are already evident. At the same time, various regions are also innovating and optimizing the relevant policies of "renovating old houses with new ones" and upgrading and iterating the model of "renovating old houses with new ones". The interviewed experts generally believe that the policy of "renovating old houses with new ones" bridges the second-hand housing market and the new housing market, and plays an important role in digesting the existing housing stock. With the optimization and implementation of relevant policies, its stimulating effect on the market may be further expanded.

7. Wuxi: We must make every effort to stabilize the market and resolutely accomplish the target task of ensuring the completion of construction and delivery of houses.

According to the release by Wuxi Municipal Government, a work promotion meeting for stabilizing investment and promoting consumption in the real estate market was held on the 22nd. The meeting pointed out that the real estate work is related to the vital interests of the people and the overall economic and social development. All relevant departments in all regions should take responsibility, be pragmatic, adhere to the combination of digesting the existing stock and optimizing the increment, promote deep and solid work, speed up the progress and improve efficiency, and ensure tangible achievements and tangible results. We must make every effort to stabilize the market and resolutely accomplish the target task of ensuring the completion of construction and delivery of houses. We should promptly introduce a new round of optimized policies related to real estate and do a good job in publicity and interpretation. We should strengthen market positive guidance through a series of activities to promote consumption, continuously expand the scope and objects of housing placement, make good and full use of new policies such as "renovating old houses with new ones" for commodity housing, and adopt multiple measures to boost market confidence and stimulate market vitality.

8. Sales volume of the top 10 housing estates in Hong Kong last weekend decreased by more than 50% compared to the previous week.

According to Midland Realty, there were 7 transactions recorded in the top 10 housing estates in Hong Kong over the weekend. The organization stated on September 22nd that sales declined by 53.3% compared to the previous week, reaching an eight-week low. Despite the interest rate cut, sales were weak mainly due to insufficient demand from mainland buyers and investors.

Chenghua District of Chengdu has announced new policies for home purchases, implementing multiple measures such as group purchase subsidies and housing resettlement.

On September 20th, following the release of new home purchase policies in Qingyang and Tianfu New Area, the Housing and Transportation Bureau of Chenghua District, Chengdu also issued the "Several Measures for Promoting the Healthy Development of the Real Estate Market in Chenghua District (Trial)" to support the healthy development of the real estate market through a series of measures. This policy covers various aspects including group purchase subsidies, housing and education, replacement subsidies, and housing resettlement. First, in terms of group purchase discounts, the district's housing and construction transportation bureau will establish a group purchase service channel with various streets to organize employees of enterprises, institutions, industrial parks, and schools as well as people affected by the requisition to participate in group purchase activities for commodity housing. During the validity period of the measures, development companies can provide discounts ranging from 1% to 5% based on the number of group buyers. Secondly, in terms of subsidies for "old for new" housing, real estate developers and real estate agencies provide discounts on new housing and exemptions from transaction fees for home buyers who purchase (exchange) homes. Discounts ranging from 1% to 4% can be enjoyed for the purchase of newly-built commodity housing projects, with some projects directly enjoying the lowest discounts on-site. In addition, in terms of children's education for homebuyers, for new residential home buyers who complete online signing and filing from January 1, 2024 to February 28, 2025 but have not completed household registration, if their children have entry or admission requirements in 2025 and meet the household registration criteria through pre-approval by the public security department, they can enjoy the same treatment as local students in preschool education; for compulsory education stage, the district education bureau will refer to the entrance enrollment method for children of appropriate age according to household registration to enroll them in district-owned public primary schools and junior high schools in the newly-built residential housing area.

10. The number of applicants for the "old for new" activity in Beijing's housing market has reached 523.

On September 23rd, the Beijing Real Estate Industry Association released the latest data. As of September 20th, the "old for new" policy for commodity housing in Beijing has attracted 523 applicants, among which 62 housing units have been reserved by buyers who have paid a deposit. This number represents a significant increase compared to the initial 31 new commodity housing projects and over 9,000 housing units. Currently, the number of newly-built commodity housing projects participating in the program has increased to 53, with a total of over 0.01 million housing units available. This "old for new" activity is an important policy introduced by the Beijing Municipal Government to promote the healthy development of the real estate market. Through this policy, home buyers can sell their old houses and use the proceeds to purchase new ones, which not only improves residents' housing conditions but also promotes the circulation and vitality of the real estate market.

11. The hearing for the liquidation of Sino-Ocean Group has been postponed until December, supporting the implementation of overseas debt restructuring strategies.

On September 23rd, the High Court of Hong Kong announced that the hearing for the liquidation application of Chinese real estate developer Sino-Ocean Group will be postponed until December. This decision was made against the backdrop of Sino-Ocean Group actively promoting its overseas debt restructuring plan. Sino-Ocean Group, a real estate company listed in Hong Kong, has faced financial pressure in recent years. This postponement will provide more time for the implementation of its restructuring strategy. The restructuring plan of Sino-Ocean Group includes parallel arrangements in the United Kingdom and the Hong Kong scheme, aiming to solve the company's debt problems.