HK Stock Market Move | All stocks in the real estate sector fell. Morgan Stanley pointed out that the housing tax relief measures are expected to slightly help real estate sales, but the sustained recovery is difficult to support.

In terms of news, Morgan Stanley released a research report stating that the Ministry of Finance introduced a series of housing tax relief measures yesterday (13th) to reduce transaction costs for both buyers and sellers. The measures are basically in line with market expectations and may provide slight help in the short term to real estate sales. The bank believes that although the measures may reduce costs for both buyers and sellers, they are still unable to reverse residents' cautious views on property prices. In addition to residents' desire to reduce leverage, the bank believes that the aforementioned tax incentives may slightly help boost sales in the real estate sector, but are unlikely to support a sustained recovery. Morgan Stanley pointed out that real estate developers are unlikely to benefit significantly from the policies, as most projects have gross profit margins in the low teens. China Overseas Land and Yuzhou Properties may benefit relatively more, while second-hand housing agencies in first-tier cities may be the main beneficiaries of increased housing upgrade demand.