HK Stock Market Move | In early trading, the stocks of the domestic real estate sector strengthened, and there is still room for further policy efforts in the real estate sector. Institutions have suggested that interest rate cuts overseas may bring about a release of housing demand.

In the morning session, property stocks in the domestic market collectively strengthened. As of the time of writing, R&F PROPERTIES (02777) rose by 9.23% to HKD 0.71, SUNAC (01918) rose by 6.52% to HKD 0.98, GREENTOWN CHINA (03900) rose by 5.55% to HKD 6.09, and SHIMAO GROUP (00813) rose by 5.26% to HKD 0.5. In terms of news, CITIC SEC believes that there are no signs of a bottoming out in the market spontaneously, but the policy space is still very adequate. There is room for action in mortgage rates, provident fund loan limits, personal income tax deduction for mortgage interest, inventory housing acquisition, and home purchase registration. The bank believes that if demand-side policies are introduced, it is possible to reverse the downward trend in the market. Earlier market news stated that China may lower interest rates on existing housing loans as early as September. Informed sources said that some housing loans could be immediately reduced by up to 50 basis points. Furthermore, the Federal Reserve cut interest rates by 50 basis points and hinted at another 50 basis points cut this year. Huafu Securities previously pointed out in a research report that there is a strong expectation for overseas interest rate cuts, which may open up further domestic interest rate cuts, leading to further release of housing demand. Against the backdrop of improving global liquidity and continued loose real estate policies, it is recommended to pay attention to leading real estate developers such as GREENTOWN CHINA and YUEXIU PROPERTY.