HK Stock Market Move | Property management stocks rose along with property stocks, and several real estate companies made new progress in debt restructuring. Morgan Stanley predicts that the property management industry will return to normal this year.

Property management stocks rose along with real estate stocks. As of the time of writing, ONEWO (02602) rose 7.3% to HKD 22.05, CG SERVICES (06098) rose 6.71% to HKD 5.41, CHINA RES MIXC (01209) rose 4.28% to HKD 30.45, and SUNAC SERVICES (01516) rose 3.87% to HKD 1.61. On the news front, the director of the National Bureau of Statistics, Kang Yi, stated at a press conference that the recent positive changes in the real estate market are increasing under the combined effect of policies, and market confidence is gradually improving. With the effective implementation of existing policy and incremental policy, the real estate market is expected to continue to improve in the next phase. Orient pointed out that several real estate companies have made new progress in debt restructuring and reorganization of investments. Faced with a larger amount of maturing debt in 25 years, domestic debt restructuring may accelerate, with a focus on reducing debt rather than extending deadlines. Morgan Stanley previously released a research report stating that with the reduction of influence from related parties and the bottoming out of the domestic real estate market, the mainland property management industry is expected to stabilize this year. Morgan Stanley predicts that the mainland property management industry will return to normal this year, with industry profitability restructuring basically completed. They believe that with the bottoming out of the housing market this year and the narrowing of sales and price declines, sentiment in the property management industry will gradually improve this year, bringing potential opportunities for revaluation. The bank expects profit growth of 3%, 9%, and 9% respectively in 2024 to 2026, with an annual compound growth rate of earnings per share of 7% during the period, as well as an improvement in shareholder returns.