HSBC Research published a research report stating that Sunac China (01918.HK) is currently promoting domestic bond restructuring. It is reported that the company recently plans to offer four options to creditors for the domestic bond restructuring plan, aiming to reduce the approximately 15.5 billion RMB domestic bond scale by about half. It is believed that the bullish news can enhance market risk preference.

The bank pointed out that financially troubled domestic property developers continue to face tight liquidity issues after the first round of debt restructuring, mainly due to a decrease in contract sales amounts. The key to the success of future rounds of debt restructuring for domestic property developers lies in whether they can effectively reduce existing debt burdens. It is believed that the solution proposed by Sunac this time can set a precedent for reducing debt pressure in the industry and promote the progress of debt restructuring throughout the sector.

Progress in debt restructuring by businesses is also seen as a new positive catalyst, capable of boosting investor sentiment and enhancing trading liquidity. HSBC Research pointed out that since October, Sunac's average trading volume has been 64% higher than the total of its peers China Overseas (00688.HK) and China Resources Land (01109.HK), indicating opportunities for relevant companies and even the entire industry to reset their valuations.

The bank currently holds a bullish view on KE Holdings (BEKE.US), China Overseas, Sunac, Longfor Properties (00960.HK), and China Resources Mixc (01209.HK) in the property industry, giving a 'buy' rating to all five companies.