Understanding the Market | Chinese property stocks fell in the afternoon, with both investment and sales in the real estate sector under pressure in August. Institutions are focusing on the policy window period for real estate in September
Chinese property stocks fell in the afternoon, with RADIANCE HLDGS down 8.97%, R&F PROPERTIES down 8.11%, Sunac China down 5.65%, and SEAZEN down 3.32%. According to data from the National Bureau of Statistics, the sales area of newly built commercial housing from January to August decreased by 4.7% year-on-year, and real estate development investment decreased by 12.9% year-on-year. Xiangcai Securities pointed out that the market sales and investment are facing downward pressure and require policy support. Recently, Beijing, Shanghai, and Shenzhen have relaxed purchase restrictions, which will have a certain effect on transactions in the short term. Attention should be paid to the real estate policy window period in September
According to Zhitong Finance APP, Chinese property stocks fell in the afternoon. As of the time of publication, RADIANCE HLDGS (09993) dropped 8.97% to HKD 2.84; R&F PROPERTIES (02777) fell 8.11% to HKD 0.68; Sunac China (01918) decreased 5.65% to HKD 1.66; SEAZEN (01030) declined 3.32% to HKD 2.62.
In terms of news, according to data from the National Bureau of Statistics, from January to August, the sales area of new commercial housing was 573 million square meters, a year-on-year decrease of 4.7%, with the decline expanding by 0.7 percentage points compared to January to July. Among them, the sales area of residential properties decreased by 4.7%, with the decline expanding by 0.6 percentage points compared to January to July. In terms of single months, the sales area of commercial housing and commercial residential properties in August decreased by 10.6% and 9.7% year-on-year, respectively, with the decline expanding by 2.7 percentage points and narrowing by 2.6 percentage points compared to July. From January to August, national real estate development investment was approximately CNY 6.03 trillion, a year-on-year decrease of 12.9%.
Xiangcai Securities pointed out that both the sales and investment sides of the real estate market are facing significant downward pressure and require continuous policy support to boost market demand. Beijing, Shanghai, and Shenzhen successively relaxed purchase restrictions and optimized housing fund loan policies in August and September. In the short term, these policies have had a certain effect on promoting transactions of new and second-hand homes, but sustainability still needs to be observed. We believe that attention should be paid to the real estate policy window period in September, as there are opportunities for speculation in the real estate sector
