On Thursday's early Hong Kong stock market, Sunac China led the decline in the real estate sector, with its stock price plummeting by 18.83%. Other real estate stocks such as Shimao Group, R&F Properties, and CIFI Holdings also fell by more than 10% each. Sunac China announced a placement of shares at HKD 2.465 per share, with a discount of 20% compared to the previous trading day, raising approximately HKD 1.205 billion in total. This news triggered a significant drop in stock prices.
This decline affected not only Sunac China but also impacted the entire real estate sector, with the market showing a sensitive reaction. According to CCB International's analysis, the valuation adjustment in the real estate industry may occur ahead of any fundamental improvement, and this process may continue for some time. Additionally, equity financing activities and potential profit-taking have also added uncertainty to the market.
From a macroeconomic perspective, the Chinese government's recent policy adjustments in the real estate market have become a significant factor affecting market sentiment. Assistant Minister of Finance Song Qichao stated at a press conference that special bond policies would be used to support local governments in purchasing existing land and providing it as affordable housing. This move shows the government's flexibility in addressing the challenges in the real estate market, aiming to stabilize market expectations through policy adjustments.
Meanwhile, a survey by Morgan Stanley showed a slight improvement in mainland residents' outlook on housing prices in September, mainly due to the recent easing of government policies. However, the sustainability of the recovery in property sales remains to be further observed.
