---
title: "What happened? Sunac China fell more than 18%, leading the decline in real estate stocks"
type: "News"
locale: "en"
url: "https://longbridge.com/en/news/217060377.md"
description: "Sunac China's stock price fell by more than 18%, leading the decline in real estate stocks. The company priced its shares at HKD 2.465 per share, with a discount of about 20%, expecting to raise approximately HKD 1.205 billion. Other real estate stocks were also affected, experiencing varying degrees of decline. Industrial Bank International pointed out that the revaluation of the real estate industry's valuation may continue for a long time, and attention should be paid to profit-taking and equity financing risks. The Ministry of Finance stated that special bonds will support land acquisition and affordable housing projects, with local authorities having autonomous decision-making power. Morgan Stanley's survey showed that mainland residents' outlook on housing prices slightly improved in September"
datetime: "2024-10-17T03:59:23.000Z"
locales:
  - [zh-CN](https://longbridge.com/zh-CN/news/217060377.md)
  - [en](https://longbridge.com/en/news/217060377.md)
  - [zh-HK](https://longbridge.com/zh-HK/news/217060377.md)
---

> Supported Languages: [简体中文](https://longbridge.com/zh-CN/news/217060377.md) | [繁體中文](https://longbridge.com/zh-HK/news/217060377.md)


# What happened? Sunac China fell more than 18%, leading the decline in real estate stocks

The three major stock indexes in Hong Kong rebounded in early trading today, but real estate stocks, which led the gains yesterday, saw adjustments. As of the time of publication, Sunac China (01918.HK), Shimao Group (00813.HK), Agile Property (02777.HK), and Country Garden Services Holdings (00884.HK) fell by 18.83%, 12.79%, 12.56%, and 10% respectively.

Note: Performance of real estate stocks

From the chart above, Sunac China had the largest decline. The company announced a placement of shares at a price of HKD 2.465 per share, with a discount of about 20% from the previous day's closing price, raising approximately HKD 1.205 billion in proceeds from the subscription.

Note: Recent performance of Sunac China

Due to the adjustment of Sunac China, other real estate stocks also experienced varying degrees of decline.

In response, China International Capital Corporation recently pointed out that the revaluation of the real estate industry's valuation may occur before improvements in fundamentals, and this process may last for a considerable period of time. They also noted the need to closely monitor potential profit-taking behaviors and risks associated with equity financing activities.

However, it is worth noting that at a recent press conference held by the State Council Information Office, Assistant Minister of Finance Song Qichao stated on October 17 that special bonds used for land acquisition and storage are mainly aimed at supporting localities to reasonably determine the acquisition price in conjunction with the actual situation of existing land, handle the debt relationships involved in the recovery of existing land properly, define the scope of special bond projects reasonably, and promptly arrange the issuance and expenditure of special bonds.

He also mentioned that for the special bonds used to purchase existing commercial housing for affordable housing, this policy is decided and implemented voluntarily by local authorities, following the principle of rule of law and operating in a market-oriented manner. Localities arrange the purchase of existing commercial housing with special bonds on the basis of ensuring the balance of project financing returns.

**Institutions report a slight improvement in mainland residents' outlook on housing prices in September**

A research report released by Morgan Stanley pointed out that the survey results for September showed a slight improvement in mainland residents' outlook on housing prices. This improvement is attributed to recent changes in political tone, but the sustainability of sales recovery still needs to be observed.

In the survey conducted by the bank, a total of 2031 residents from first-tier to fourth-tier cities participated, of which 68% of respondents with home-buying plans believed that recent policy relaxations had a positive impact on their plans. 38% of respondents expected housing prices to fall in the next 12 months, indicating a slight improvement in potential buyers' views on housing prices

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