Tracking Hong Kong stocks concept | Central bank lowers interest rates on existing home loans, unified minimum down payment ratio for home loans. Real estate sector may see valuation recovery (with concept stocks).

On September 24, the Governor of the People's Bank of China, Pan Gongsheng, announced at a press conference at the State Council Information Office that the interest rates on existing home loans will be lowered and the minimum down payment ratio for housing loans will be unified, guiding commercial banks to reduce the interest rates on existing home loans to near the rates for new home loans, with an average expected decrease of around 0.5 percentage points. The minimum down payment ratio for first and second home loans will be unified, with the national minimum down payment ratio for second home loans being lowered from 25% to 15%. For the first half of 2024, the year-on-year growth rates of housing prices in first-tier, second-tier, and third-tier cities across the country will continue to decline. Haitong believes that in general, the stable growth environment in the market has not changed, and the advantages and value of quality companies relative to other real estate companies will become more prominent. Guotai Junan Securities released a research report stating that according to data from the statistics bureau, both real estate investment and construction area data improved in August, with a slight narrowing of the decline in data, and no significant fluctuations in performance. Considering that August marked the end of the period affected by policies implemented in May, there is still anticipation for new policies to provide support. Real estate-related industry chain companies include CHINA OVERSEAS (00688), C&D INTL GROUP (01908), YUEXIU PROPERTY (00123), GREENTOWN CHINA (03900), SUNAC (01918), LONGFOR GROUP (00960), SINO-OCEAN GP(03377), CHINA VANKE(02202), CHINA RES LAND(01109), SUNAC(01918), LONGFOR GROUP (00960), SINO-OCEAN GP(03377), CHINA VANKE(02202), CHINA RES LAND(01109), and CIFI (00884); Property management companies include CHINA RES MIXC(01209), POLY PPT SER(06049), CHINA OVS PPT(02669), MIDEA REAL EST(03990) etc. Real estate agencies include BEKE-W(02423), CG SERVICES(06098).