Market News

CICC said in a statement that last week (August 21-27), the sales area of new houses in 57 cities and second-hand houses in 15 cities increased by 14% and 3% on a weekly basis, with a year-on-year decline of 24% and flat, while the volume of sales in 13 cities increased by 28% to 8384 units on a weekly basis. Last week, sales of both new and second-hand houses increased weekly, and the future focused on observing the landing and impact of policies in core cities. Driven by a weekly increase of nearly 30% on the new push, the area of new housing sales in 57 sample cities continued to grow by 14% month-on-month last week, with an annual decline of 24% compared with the week before; over the same period, the sales area of second-hand housing in 15 sample cities increased by 3% on a weekly basis. year-on-year flat (the week before last week-7%), the fundamentals are beginning to build a bottom. The report points out that since the meeting of the Politburo in July, demand support policies have been introduced in many places. among them, the cities that have made adjustments to purchase restrictions, loan restrictions and sales restrictions include Zhengzhou, Guiyang Guian New area, Hangzhou Yuhang District, Nanchang, Taiyuan, Jiaxing, Jinhua, Jinzhong, Xinxiang, Pingxiang, Wuzhou and other places, but it has not yet involved the relaxation of the whole range of strong second-tier cities. On Friday, many ministries once again expressed their position to add "housing recognition and non-loan recognition" to the city policy toolbox, the preferential period for the refund of personal income tax was extended, and the marginal refinancing arrangements for real estate enterprises were optimized. the bank believes that it is necessary to observe the implementation of policies in cities with a strong second tier and above, as well as the corresponding improvement in sales, which is expected to be repaired in a timely manner. Looking ahead, CICC believes that the inclusion of "house recognition and non-loan recognition" into the city policy toolbox on Friday (25th) will boost market sentiment and raise investors' expectations of demand-side support policies at the city level. We should continue to observe the progress of implementation in the near future. Considering that the current positions and valuations of inner housing stocks are still low, and that the demand-side supportive policies implemented by the city are expected to gradually hit the ground and lead to the bottom of the real market boom, the bank continues to be optimistic about the allocation value of internal housing stocks in the next 3 to 6 months. the first recommended is the opportunity for high-quality central state-owned enterprises (or similar state-owned enterprise qualifications) in cities with high energy levels and above. Hong Kong stocks include China overseas (00688.HK), China Construction Development (01908.HK), Yuexiu Real Estate (00123.HK) and China Resources Land (01109.HK). The second is the flexible opportunity for high-quality non-state-owned enterprises to consolidate their finances to return to sound development. Hong Kong stocks include 00960.HK and 03900.HK.