Benefiting from multiple bullish policies, most Hong Kong stock real estate shares strengthened today. As of the time of publication,$COUNTRY GARDEN (02007.HK)$up nearly 6%, $RONSHINECHINA (03301.HK)$ up nearly 5%, $CIFI HOLD GP (00884.HK)$ 、$YUEXIU PROPERTY (00123.HK)$Increased by over 3%.

Policies of 'combination punches' are intensively implemented, with dual efforts on both demand and financing.

Since March 2025, central and local real estate support policies have accelerated to form a comprehensive control framework of 'demand stimulation + financing easing + long-term mechanisms.'

The central government has set a tone of 'stabilizing the real estate market': The General Office of the Communist Party of China and the General Office of the State Council issued the 'Special Action Plan for Boosting Consumption,' clearly stating the aim to 'promote the stabilization of the real estate market' and signaling an 'appropriate reduction in housing provident fund loan interest rates.'

In addition to the private real estate enterprise symposium organized by the China Real Estate Association on March 11, the policies have signaled a willingness to listen to market voices and optimize controls, providing support for industry confidence restoration.

Local policies boost demand: On March 16, the Shenzhen Municipal Government released significant new policies, canceling the residency restrictions for off-site provident fund loans, raising the maximum loan amount for families to 2.31 million yuan, reducing the down payment ratio to 20%, and increasing support for multi-child families and affordable housing.

In addition, after the Spring Festival, the transaction area of new houses in 30 cities increased by 19.49% year-on-year, while second-hand houses rose by 40.87%; in places like Peking and Shanghai, the land auction premiums increased, and in February, nationwide land transfer revenues grew by 18% year-on-year, marking the first positive growth in nearly five years. The sales data of leading real estate companies is also strong.$CHINA RES LAND (01109.HK)$In February, sales increased by 46.9% year-on-year, and YUEXIU PROPERTY's year-on-year growth rate exceeded 63%.

The current rebound in real estate stocks is driven by the dual effects of improved liquidity and the valuation gap.

Expectations for liquidity easing are warming up: on March 13, the central bank signaled 'timed reserve requirement and interest rate cuts', and the Financial Regulatory Administration stressed the 'prevention of delivery failures' funding support, while Capital Markets strengthened expectations for improved financing conditions for real estate companies.

Valuation recovery space is significant: the dynamic PE of the CSI China Mainland Real Estate Index for the Hong Kong Stock Connect is only 6.2 times, lower than the average of the past five years; high-quality state-owned enterprises such as CHINA RES LAND,$Poly Developments and Holdings Group (600048.SH)$The dividend yield exceeds 5%, highlighting the margin of safety.

Institutional views: Focus on leading companies and structural opportunities.

Many institutions believe that the real estate sector has entered a positive cycle of 'policy dividend release - sales data verification - continuous valuation recovery':

Leading real estate companies continue to strengthen: financially stable state-owned enterprises (such as CHINA RES LAND, $CHINA OVERSEAS (00688.HK)$) and high-quality private enterprises (such as $LONGFOR GROUP (00960.HK)$、$Hangzhou Binjiang Real Estate Group (002244.SZ)$) are expected to be the first to benefit from policy easing and industry concentration increases.

Regional differentiation and model innovation: core cities (such as Shenzhen, Hangzhou) have a greater relaxation of policies and a hotter land market. The transformation of "Real Estate + Services" opens up a second growth curve.$CHINA RES MIXC (01209.HK)$、$CG SERVICES (06098.HK)$.

Resilient symbols under the improved risk appetite: private real estate companies with high debt ratios (such as $SUNAC (01918.HK)$、$KAISA GROUP (01638.HK)$Under the expectation of policy relief, it shows high elasticity, but caution is needed regarding the uncertainty of debt restructuring.

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