Fitch Ratings on "Domestic Real Estate": The mainland new housing market is trending weak in the fourth quarter, with sales and housing prices in the first eleven months falling short of expectations

Fitch Ratings stated that the Chinese new housing market further weakened in the fourth quarter of this year, with sales in the first eleven months down 11.2% year-on-year, total sold floor area decreasing by 8.1%, and average prices dropping by 3.3%. This performance fell short of Fitch's forecasts for a 7%, 5%, and 2% decline in annual sales, total floor area, and average prices, respectively. The agency believes that the market weakness is mainly due to the slowdown of the Chinese economy, labor market pressures, and expectations of further declines in housing prices; while policy support can only provide temporary relief.

In this quarter, Fitch adjusted the outlook for China Jinmao (00817.HK) and Beijing Capital Development Holdings (Group) from "negative" to "stable," reflecting their sales performance outperforming peers and a clearer direction for business transformation. Due to repayment risks associated with Vanke (02202.HK) medium-term notes, Fitch downgraded its long-term foreign and local currency issuer default ratings multiple levels to "restricted default."