The Zhitong Finance App learned that domestic housing stocks surged higher and fell in early trading, and the decline widened further in the afternoon. As of press release, Shimao Group (00813) fell 9.09% to HK$0.5; Sunac China (01918) fell 5.76% to HK$1.31; Yuexiu Real Estate (00123) fell 4.89% to HK$5.06; and R&F Properties (02777) fell 4.95% to HK$0.96.

According to the news, despite ongoing stimulus policies in various regions, sales of the top 100 housing enterprises are still under pressure. According to data released by the market agency Kerui on the evening of April 30, the top 100 real estate companies achieved trading sales of 312.17 billion yuan in April, down 12.9% from the previous month and a sharp drop of 44.9% from the previous year. The monthly performance remained at a historically low level. Kerry expects that the absolute sales of the top 100 real estate companies in May will remain the same as in April or decline slightly. Considering the high base for the same period in 2023, the sales performance of the top 100 real estate companies will continue to decline year-on-year in May.

Cinda Securities pointed out that the current real estate sector reflects the future recovery of the real estate market and the introduction of a more competitive inventory removal policy. The bank believes that the real estate sector's interpretation is expected to be maintained in the short term, but whether it can be sustainable still mainly depends on two factors. One is the continued introduction of follow-up policies. Continued policy increases will give the real estate sector more room to play. The second is improvements in sales and fundamentals. The stabilization of the sales market will further verify expectations that the market will bottom out and rebound. It should be noted that slow policy progress or the sales market is still declining may lead to the end of this round of gaming in the real estate sector.