Hong Kong stock market anomaly | Property stocks continue to decline, the new housing market remains under pressure, and real estate companies' sales volume remains low.

Real estate stocks continue to decline. As of the time of publication, SHIMAO GROUP fell by 5.56%, to HKD 0.51; YUEXIU PROPERTY dropped by 3.89%, to HKD 4.7; CHINA VANKE decreased by 3.75%, to HKD 5.39; and XINCHENG DEVELOPMENT fell by 3.57%, to HKD 1.08. According to data from Ke Rui, in February 2024, the sales turnover of the Top 100 developers was 185.86 billion yuan, a 60% decrease compared to February 2023 and a 53.7% decrease compared to February 2022; a 20.9% decrease compared to January 2024. The supply of new housing in 30 key cities increased by 3.46 million square meters, a 53% decrease compared to the previous month and a 55% decrease year-on-year. Guojin Securities pointed out that the new housing market has been under pressure since the beginning of 2024, with sales of real estate enterprises remaining low mainly due to weak demand expectations, lack of confidence, subdued demand and purchasing power, and the supply side being in the traditional off-season, resulting in low enthusiasm for real estate promotion and marketing by enterprises. The bank believes that with sales continuing to hit bottom, industry risks have not yet been cleared, and real estate enterprises need to actively sell to secure liquidity.