Benefiting from a series of favorable policies over the weekend, the Hong Kong real estate sector saw a surge in October, with Jinmao Holdings (09993.HK) leading the charge with an increase of over 11%. As of this report, China Resources Land (01109.HK), China Overseas Land & Investment (00688.HK), and Greentown China (03900.HK) rose by 4.86%, 4.17%, and 3.70% respectively.
The recent rise in real estate stocks is attributed to the Chinese government's recent policy support for the real estate market. At the State Council press conference on October 12, the Ministry of Finance announced a series of fiscal policies aimed at boosting the real estate industry, including allowing local governments to use special bonds for land reserves and purchasing existing housing, while optimizing tax policies to reduce the tax burden on real estate companies. These measures will help alleviate inventory pressure and promote the healthy development of the market.
Since late September, the Chinese government has introduced a flurry of policies targeting the real estate sector. On September 24, the People's Bank of China and the Financial Supervision and Administration released five real estate financial policies, reducing interest rates on existing mortgages and unifying the minimum down payment ratio for first and second homes to 15%. Subsequently, the Politburo meeting on September 26 further proposed a new policy direction of "promoting the stabilization and recovery of the real estate market," clarifying the need to enhance the quality of commercial housing construction and optimize inventory structures.
In addition, at the end of September, first-tier cities like Beijing, Shanghai, Guangzhou, and Shenzhen adapted their real estate control policies to local conditions, lowering thresholds for purchasing homes, particularly with Guangzhou lifting purchase restrictions, unleashing significant local buying demand. The rapid implementation of these policies has gradually strengthened market expectations for the stabilization and recovery of real estate prices.
Analytical institutions believe that the rapid and extensive adjustments in current real estate policies are expected to significantly support demand in first-tier cities, with this trend likely to extend to second- and third-tier cities in the future, thereby improving the fundamentals of the entire real estate market. Kaiyuan Securities maintains a "positive" rating for the real estate sector and expects these policies to accelerate local governments' acquisition of existing commercial housing, effectively addressing inventory issues and promoting the construction of affordable housing.
