HK Stock Market Move | BEKE-W(02423) continued to rise by over 4% in September as the LPR remained unchanged. Institutions say that short-term real estate stimuli are still in policy.

BEKE-W (02423) rose by more than 4%, up by 3.96% to HK$39.35, with a turnover of HK$161.63 million. On the news front, the September LPR quotation was released this morning, with the 1-year and 5-year rates remaining unchanged. In addition, the Chief Economist of China Minsheng Banking Corp., Ltd., Wen Bin, stated that there is a high demand in the market for a further reduction in existing home loan rates. Lowering existing home loan rates will help alleviate early mortgage repayments, enhance the sustainability of household debt, stimulate consumer demand, and create a more equitable financing environment. Ping An Securities pointed out that current property market volume and prices have significantly declined from their highs in 2021. With substantial decreases in down payments and mortgage rates, the threshold for homebuyers has significantly decreased, and rental yield attractiveness is gradually increasing. The market value and positions of major property firms are at historically low levels, and market reactions to the downturn in the property market and performance pressure have become relatively dull. From a medium-term perspective, sector opportunities may outweigh risks. Short-term sector catalysts still depend on policies, so focus on the implementation of the housing purchase restrictions in September, while medium-term trend opportunities rely on the stabilization of property market volume and prices. It is recommended to pay attention to brokers like Beike.