Understanding the Market | Chinese property stocks collectively surged in the afternoon as the Ministry of Housing and Urban-Rural Development indicated that the real estate sector has entered a stock era, with the market concentration of leading central state-owned enterprises expected to increase

According to Zhitong Finance APP, Chinese property stocks collectively surged in the afternoon. As of the time of writing, CHINA VANKE (02202) rose by 7.50% to HKD 2.365; Sunac China (01918) increased by 6.31% to HKD 0.59; New World Development (01030) climbed by 5.32% to HKD 1.485; and Country Garden (02007) went up by 4.09% to HKD 0.178.

In terms of news, Zhang Xuetao, Director of the Real Estate Market Regulation Division of the Ministry of Housing and Urban-Rural Development, stated at a press conference that the current real estate market has seen "two transformations." One is a significant change in the supply-demand relationship of the real estate market; the other is that the real estate market has entered the stock era, with the proportion of second-hand housing transactions increasing from 27% in 2020 to 46% in 2025, and reaching 52% in the first eight months of this year. Exceeding 50% marks the entry into the stock era. Zhang Xuetao indicated that, looking ahead, the sale of existing homes has become a prevailing trend.

Pacific Securities pointed out that the year-on-year decline in sales in August expanded, and the decline in real estate investment and construction continued to widen. September is generally a traditional peak sales season, and it is expected that real estate companies will maintain a certain scale of launches in core cities. The subsequent real estate market is expected to continue its bottoming and recovery trend. We believe that close attention should be paid to the implementation effects of real estate policies in various regions, with a focus on opportunities for increased market concentration among leading central state-owned enterprises