HK Stock Market Move | Internal property stocks significantly differentiated, CHINA VANKE (02202) rose more than 7% in the afternoon, while SUNAC (01918) is currently down by over 5%.

The internal real estate stocks showed significant differentiation today. As of the time of writing, CHINA VANKE (02202) rose by 4.18% to HK$5.48; AGILE GROUP (03383) rose by 1.64% to HK$0.62; SUNAC (01918) fell by 5.03% to HK$1.51; RONSHINE CHINA (03301) fell by 1.92% to HK$0.255. In terms of news, China Vanke Co., Ltd. announced that its bond "21 Vanke 02" paid interest on January 22. In addition, COUNTRY GARDEN announced that it has met all the requirements for resumption of trading. Orient pointed out that several real estate companies have made new progress in debt restructuring and investment reorganization recently. Faced with a larger amount of maturing debt in the next 25 years, domestic debt restructuring may accelerate, with a focus on debt reduction rather than extensions. UBS released a research report predicting a 27% year-on-year decline in profits for mainland real estate developers by 2024, an increase from the 22% decline in the first half of 2024, mainly due to the decline in home prices in the third quarter of last year. Considering the slowdown in real estate sales since mid-December last year, weakening policy impacts, and potential profit downgrades before financial reporting period (in March this year), UBS currently maintains a cautious view on real estate companies and property management companies. They forecast a further 10% decline in home prices by 2025, indicating that the profits of internal real estate companies may not have bottomed out yet.