HK Stock Market Move | Property management stocks continue to rise steadily as the new real estate policies have unprecedented strength. Institutions point out that the value of sector allocation has become more prominent.

Property management stocks continue to rise. As of the time of writing, SHIMAO SERVICES (00873) increased by 7.58% to HK$0.71, CG SERVICES (06098) rose by 5.64% to HK$4.68, SUNAC SERVICES (01516) went up by 4.85% to HK$1.73, and CHINA OVS PPT (02669) increased by 4.42% to HK$5.2. In terms of news, the Governor of the People's Bank of China, Pan Gongsheng, announced today a reduction in the interest rates for existing housing loans and a unified minimum down payment ratio for mortgage loans. This is aimed at guiding commercial banks to lower the interest rates for existing housing loans to the level of new loans, with an average decrease of around 0.5 percentage points. The minimum down payment ratio for first-time and second-home buyers nationwide has been reduced from 25% to 15%. Dongguan Securities believes that the policy measures are unprecedented. Coupled with continued optimization of policies at the local level after the Third Plenary Session, further positive progress is expected to accelerate the recovery of the real estate industry fundamentals. Additionally, the Federal Reserve has started an interest rate cut cycle. EB SECURITIES previously pointed out that as the expectations for a Federal Reserve interest rate cut increase and domestic real estate policies continue to improve, the risks related to property management are gradually dissipating, highlighting the value of sector allocation.