Goldman Sachs: Liquidity injection remains the core driving force for the rebound of domestic property stocks in the short term

Goldman Sachs' research report indicates that recent reports from the mainland suggest that several real estate developers have confirmed that central regulatory agencies no longer require the monthly submission of "three red lines" indicator data. Communication between the bank and several developers shows that these monthly reports have actually been suspended for a year. The real estate sector has risen due to this news, reflecting that the recovery of housing demand is still distant, and liquidity injection remains the core driving force for the rebound of industry stock prices in the short term.

The bank believes it is essential to closely observe whether the number of second-hand housing listings will significantly rebound from March to April, which will help assess households' willingness to sell properties at current price levels. If the number of listings is far below expectations, it may reflect a slowdown in the selling pressure in the second-hand housing market, allowing housing prices to stabilize earlier than expected.

At the same time, it is also necessary to observe liquidity injection measures targeting specific developers, demand support policies such as mortgage rate subsidies and the optimization of the housing provident fund system, as well as potential large-scale stimulus measures to boost overall demand and improve the overall employment and income outlook.

The bank maintains a "Buy" rating on China Resources Land (01109.HK), Greentown China (03900.HK), China Jinmao (00817.HK), and China Overseas (00688.HK)