Inner housing stocks rose generally, led by Bao long Real Estate (1238.HK), and Sunac China, Xu Hui Holdings, China Vanke and China Olympic Garden all rose more than 2 per cent.
In terms of individual stocks, Baolong real estate announced last night that the profit attributable to company owners is expected to increase by no less than 40% in 2019.
On the plate, HSBC Research recently issued a research report, pointing out that due to the impact of the COVID-19 epidemic on the mainland economy and the local government's high reliance on land sales, it is believed that the real estate policy may be relaxed. It is also expected that the policy will be relaxed as soon as March this year to ease the financial pressure on the local government. Maintaining a constructive view of the inner housing industry, coupled with the recent stock price adjustment, has made sector valuations attractive.
Credit Suisse said the momentum of land sales had been a leading indicator of a reversal in real estate policy and expected to see policy easing in the first half of the year, including refinancing by developers, loan-to-value lending and new pricing.
Fu Rui also pointed out that in order to reduce the impact of COVID-19 on the overall economy and finance, the market expects that more policies or credit will be introduced in the next few months, which will benefit the industry as a whole, and investors are advised to wait for the opportunity to make a bottom.