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<Research Report>CITIC Securities: Policies Able to Stabilise CN Property Mkt; T1/2 Cities ASP to Stop QoQ Drop in 4Q
CITIC Securities released a report on China's property market, saying that many places in China have recently issued intensive policies to optimise the purchase restriction req...
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<Research Report>CITIC Securities: Policies Able to Stabilise CN Property Mkt; T1/2 Cities ASP to Stop QoQ Drop in 4Q
Recommend
49
Positive
97
Negative
54
 
 

CITIC Securities released a report on China's property market, saying that many places in China have recently issued intensive policies to optimise the purchase restriction requirements for commercial properties.

The policies of "recognising houses but not loans" for first-time buyer recognition and lowering the proportion of downpayment for first purchases have had a marginal impact. With a rich policy toolbox of options such as relaxing the restriction on purchases, the broker expected that the property market would move towards a gradual recovery over the course of the year.

Related NewsHSBC Global Research: Strong MoM Growth of Jun CN Home Sales Reflects Positive Impact of May Policy Ann
CITIC believed that with the easing of purchase restrictions and implementing of other policies, the real estate market in more regions will gradually bottom out, and the average sales price of first- and second-tier cities is expected to stop falling QoQ in 4Q23. The broker foresaw national commodity housing sales to gradually move towards recovery within the year.

According to the broker, policies are capable of stabilising China's property market. In the short term, the broker believed that the policy toolkit, including the lifting of restrictions on home purchases, is expected to continue to be utilised and that housing prices should not continue the decline. In the medium to long term, the construction of subsidised housing and the redevelopment of urban villages are expected to inject new momentum into the market, and property developers are expected to gain new room for business development.

CITIC is of the view that this is the moment when the cycle bottoms out, and the starting point for the real estate industry to move towards a new model of sustainable development. The broker expected the industry's recovery to begin in September and predicted that policies including the easing of restrictions on purchases will have a tangible effect.

Related NewsUBS: CN Top 100 Property Firms' Sales Recover Slightly in Jun
CITIC is bullish on leading companies in terms of resources, creditworthiness and capabilities, recommending CHINA RES LAND (01109.HK)  -0.500 (-1.789%)    Short selling $56.88M; Ratio 29.061%   and YUEXIU PROPERTY (00123.HK)  -0.080 (-1.515%)    Short selling $6.70M; Ratio 19.030%   . For property managers, the broker is bullish on ONEWO (02602.HK)  +0.100 (+0.446%)    Short selling $835.62K; Ratio 14.605%   , CHINA RES MIXC (01209.HK)  -0.300 (-1.207%)    Short selling $3.68M; Ratio 5.956%   , CHINA OVS PPT (02669.HK)  0.000 (0.000%)    Short selling $6.75M; Ratio 14.796%   and YUEXIU SERVICES (06626.HK)  +0.010 (+0.311%)   .

(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2024-07-05 16:25.)

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