HK Stock Market Move | Rise in domestic real estate stocks, continued effects of property policies manifested, first-tier cities showing signs of recovery.

In the stock market, real estate stocks rose, as of the time of writing, CHINA VANKE (02202) rose by 6.79%, to 5.03 Hong Kong dollars; SHIMAO GROUP (00813) rose by 5.62%, to 0.94 Hong Kong dollars; SUNAC (01918) rose by 5.16%, to 1.63 Hong Kong dollars; R&F PROPERTIES (02777) rose by 4.84%, to 1.3 Hong Kong dollars; SINO-OCEAN GP (03377) rose by 4%, to 0.26 Hong Kong dollars. On the news front, on January 17th, the National Bureau of Statistics released data showing that in December 2024, among the 70 large and medium-sized cities, the sales prices of residential properties in first-tier cities rose month-on-month, while the overall decline in second and third-tier cities narrowed; the year-on-year decline in first, second, and third-tier cities continued to narrow. Chief analyst at Centaline Property, Zhang Dawei, analyzed, "Since the end of September 2024, the property market has shown a clear trend of stabilization and recovery for three consecutive months under a series of policies. Various policies, in terms of intensity and pace, seem to have injected a strong stimulus into the property market, greatly boosting market confidence." Open Source Securities stated that since September 2024, central policies have continued to escalate, with a comprehensive macro policy "big gift package" being introduced, which will actively boost the real estate market. The adjustment of real estate policies is positive and rapid, and the path of "stabilization and recovery" of housing prices is emerging. It is expected that policy adjustments in first-tier cities will provide strong support to the demand side, gradually improve housing price expectations, and gradually achieve "stabilization and recovery" of housing prices in second and third-tier cities, bringing about improvement in the fundamental aspects of the real estate sector, maintaining a "positive" industry rating.