"Large Banks" Huayan: Fujian promotes a package of policies to stimulate real estate sales, favoring CHINA RES LAND, C&D INTL GROUP, and SEAZEN

Huayan published a report stating that since the January article in "Qiushi" set the tone for real estate policy, the market has been expecting more decisive measures. Fujian Province recently (on the 3rd) announced a policy package to support the real estate market, covering supply control, housing consumption, trade-in programs, and urban renewal. HSBC believes that these measures aim to maximize the impact on the upcoming spring peak sales recovery. However, whether these policies will be effective will be determined by the sales data in March, which is believed to be crucial for maintaining the risk appetite market sentiment in the industry.

HSBC considers C&D International Group (01908.HK) to be a clear beneficiary, with 25% of its land reserves located in Fujian, and its regional state-owned enterprise background allows it to benefit from government-led acquisition of idle land. As market expectations for policies become more optimistic, the entire industry is expected to perform well.

In HSBC's view, underperforming companies may receive more attention, and C&D International, which has lagged since the beginning of the year, has catch-up potential; it is also expected that as the mainland issues consumption vouchers during the 9-day Spring Festival to stimulate consumption, market interest in commercial real estate stocks, namely CHINA RES LAND (01109.HK) (first-tier) and SEAZEN (01030.HK) (second and third-tier), will rise again. Based on the above background, HSBC remains optimistic about CHINA RES LAND, C&D Group, and SEAZEN, all rated "Buy," as they offer more attractive risk-reward in a stabilizing market environment.

For specific ratings and target prices of domestic property stocks, please refer to the other table