HK Stock Market Move | In the afternoon, the decline in the stock market expanded, and there is still room for real estate incremental policies. New housing supply fell in November.

The decline of the real estate stocks expanded in the afternoon. As of the time of writing, RONSHINECHINA (03301) fell by 7.94% to HK$0.58, SINO-OCEAN GP (03377) fell by 7.89% to HK$0.35, ZHONGLIANG HLDG (02772) fell by 6.62% to HK$0.141, and YUEXIU PROPERTY (00123) fell by 4.31% to HK$6.22. On the news front, on November 8th, the Standing Committee of the National People's Congress held a press conference, where it was pointed out that the relevant tax policies supporting the healthy development of the real estate market have been approved and will be soon launched; the Ministry of Finance is coordinating with relevant departments to research and formulate detailed policies to accelerate implementation, in support of using special bonds to reclaim idle land, add to land reserves, and acquire existing commercial housing for affordable housing. Additionally, the Ministry of Natural Resources released a notice yesterday regarding the use of special bonds by local governments to reclaim and acquire idle land, with a focus on reducing the size of idle land, improving the supply and demand relationship of land, enhancing the liquidity of local governments and businesses, and stabilizing the real estate market. China Post Securities believes that there is still room for incremental policies, optimizing tax policies to further reduce the cost of purchasing homes for residents and the tax and fee costs of real estate companies. With the coordination of the collection and purchase policy, the current heat in the housing market is still maintained, and attention will continue to be paid to the subsequent issuance of relevant policy details. Sinolink points out that November is the traditional off-peak season, and the enthusiasm of real estate developers to put homes on the market is steadily declining. According to research data from CRIC, it is estimated that the supply of new residential properties in 28 key cities in November will decrease by 9% from the previous month and by 52% year-on-year. The bank believes that with the weakening of policy stimulus effects, the decrease in new housing supply, and the reduction in marketing activities by real estate developers, there may be some constraints on the increase in new home sales in November.