Financial Services Association, May 9 (Editor: Hu Jiarong) An important piece of news this morning attracted market attention. Boosted by this news, most Hong Kong real estate stocks strengthened. As of press release, Agile Group (03383.HK), Longguang Group (03380.HK), Ocean Group (03377.HK), and Shimao Group (00813.HK) were up 3.85%, 3.70%, 3.28%, and 2.22% respectively.

Note: Performance of real estate stocks

In terms of news, the Hangzhou Municipal Leading Group Office for the Stable and Healthy Development of the Real Estate Market issued the “Notice on Optimizing and Adjusting the Real Estate Market Regulation Policy” on May 9. Among them, it was mentioned that housing purchase restrictions will be completely abolished, that housing purchases within the city will no longer be reviewed.

The notice also stated that for newly built commercial housing projects where the number of registered households intending to buy a home is less than or equal to the number of properties approved for sale, the notarized sales requirement will be abolished, and the development enterprise will sell it independently. If the buyer does not have a home within the urban area of the house they purchased, or if they only have a home within the urban area of the purchased house and are being listed for sale, it can be determined according to the first housing unit when applying for a mortgage loan for a new home.

In addition, some regions of China have recently made adjustments to their provident fund policies. According to statistics from May 7, on the same day alone, Jiangsu Wuxi, Anhui, and Dehong Prefecture in Yunnan announced measures to optimize housing provident fund policies.

Specifically, the city of Wuxi lowered the down payment ratio for the provident fund loan to buy a second home, from 40% to 20%, raised the loan amount, and relaxed the conditions for offsite loans. The city of Hefei plans to increase the amount of provident fund loans. Meanwhile, Dehong State introduced policies to support the use of provident fund account balances to repay loan principal and interest.

Recently, favorable real estate policies have been introduced frequently

In fact, recent policies favorable to real estate have been introduced frequently, boosting market confidence. For example, on May 6, the Shenzhen Housing and Construction Bureau issued the “Notice on Further Optimizing Real Estate Policies”, which further optimizes Shenzhen's real estate policy in three areas: optimizing housing purchase restriction policies by zoning, adjusting policies for enterprises and institutions to purchase commercial housing, and improving the facilitation of second-hand housing transactions.

On May 3, the Shanghai Real Estate Industry Association and the Shanghai Real Estate Agents Association jointly initiated a commercial housing “trade-in” campaign throughout Shanghai. Through the “trade-in” model, it will be easier for residents to replace housing and better support residents' reasonable graded home buying needs. More than 20 real estate development companies and nearly 10 real estate brokerage agencies joined the initiative in the first batch. The first batch of more than 30 projects participated in the initiative, mainly in Jiading, Songjiang, Qingpu, Fengxian, and Lingang regions.

On April 30, the Political Bureau of the CPC Central Committee held a meeting. The conference emphasized the need to combine new changes in the relationship between supply and demand in the real estate market and the people's new expectations for high-quality housing, to comprehensively study policies and measures to absorb the stock of real estate and optimize incremental housing, and urgently construct a new model of real estate development to promote high-quality real estate development.

In response, China Post Securities pointed out that the optimization of purchase restriction policies in various regions is beneficial to the restoration of real estate confidence. It is expected that Tier 1 and 2 cities will continue to loosen the property market in the future. Possible directions for subsequent supply-side policies include removing inventory in key cities and revitalizing inventory assets across the country. The pace of independent adjustment of restrictive policies by local governments in terms of demand-side policies is expected to accelerate.