HK Stock Market Move | The internal housing stocks have strengthened again, and the combination of policies has released positive signals. It is expected that the market sales data will stabilize.

The property stocks strengthened again. As of the time of writing, SUNAC (01918) rose by 7.69% to HK$1.26; AGILE GROUP (03383) rose by 5.38% to HK$0.49; CHINA VANKE (02202) rose by 5.34% to HK$4.93; LONGFOR GROUP (00960) rose by 4.65% to HK$9.67. On the news front, Pan Gongsheng, the Governor of the People's Bank of China, announced at a press conference yesterday a reduction in the interest rates on existing home loans and the unification of the minimum down payment ratio for home loans. This aims to guide commercial banks to reduce the interest rates on existing home loans to near the rates for new home loans, with an expected average decrease of around 0.5 percentage points. The minimum down payment ratio for first-time home buyers and second-home buyers nationwide will be lowered from 25% to 15%. CITIC SEC believes that the relevant policies will help improve residents' consumption capacity, stimulate housing demand, stabilize the real estate industry, promote affordable housing construction, and the positive impact is expected to transmit along the entire industry chain. Open Source Securities believes that the combined policies targeting the real estate sector have sent out positive signals, providing full support for both home buyers and enterprises. The lowering of the down payment ratio for home loans to historic lows, coupled with the reduction in interest rates on existing home loans, can lighten the debt burden on residents, stimulate consumption and investment, alleviate pressures on early loan repayment, stabilize housing consumption expectations, boost confidence in home buying, and the downward adjustment in policy rates also indicates further downward movement in central mortgage rates. With continued support from loose monetary policies, the economy will maintain robust growth, the restoration of confidence in home purchases will stabilize, market sales data are expected to bottom out, promoting the stable and healthy development of the real estate industry.