HK Stock Market Move | Most of the stocks in the domestic real estate sector have risen, Vanke's debt resolution has made significant progress, and recent real estate policy expectations have heated up.

Most of the stocks in the real estate sector rose, as of the time of writing, CHINA JINMAO (00817) rose by 6.62% to 1.62 Hong Kong dollars; GREENTOWN CHINA (03900) rose by 5.49% to 10.38 Hong Kong dollars; CH OVS G OCEANS (00081) rose by 4.2% to 2.48 Hong Kong dollars; SEAZEN (01030) rose by 3.13% to 2.31 Hong Kong dollars; CHINA VANKE (02202) rose by 1.94% to 3.68 Hong Kong dollars. On the news front, Vanke made significant progress in resolving debt issues, as the extension resolutions for the 57 billion yuan of medium-term notes, "22 Vanke MTN004" and "22 Vanke MTN005", were both approved. At the same time, Vanke's largest shareholder, CRCC, provided a loan of up to 23.6 billion yuan to repay the principal and interest of the company's publicly traded bonds. Huatai previously believed that the easing of pressure on leading developers would help stabilize expectations in the short term, coupled with the recent warming expectations of real estate policies, which could bring about opportunities for a valuation recovery in real estate stocks. Northeast pointed out that at the beginning of 2026, the real estate policies continued to escalate, with the central bank lowering the interest rates of structural tools, the interest rate for re-loans of affordable housing dropping to 1.25%, the down payment ratio for commercial properties dropping from 50% to 30%, the extension of the policy for tax refunds for house exchanges, and a significant enhancement in policy efforts. The supply and demand structure in first-tier cities has improved simultaneously, and the market is expected to steadily recover. New home transactions in Beijing surged after the new policies, while second-hand home viewings and transactions increased, with the price declines significantly narrowing. Second-hand home deposits and transaction volumes in Shanghai notably rebounded, with the number of listings continuing to decline and prices stabilizing. Second-hand home viewings and contract volumes in Shenzhen hit a new high since the "Little Spring" of 2025, and price declines narrowed further. Overall, with increased policy support and improvements in first-tier city data, the real estate market's volume and price indicators are expected to accelerate their bottoming out.