HK Stock Market Move | Nepal's continued recent decline in house stocks, sales of new homes, and the completion and commencement of new construction projects are under pressure. Institutions are questioning the sustainability of the stabilization of the first-tier property market.

The performance of the real estate sector continued to decline recently. As of the time of publication, RADIANCE HLDGS (09993) fell by 13.11% to 1.79 Hong Kong dollars; CH OVS G OCEANS (00081) fell by 3.17% to 2.75 Hong Kong dollars; R&F PROPERTIES (02777) fell by 2.7% to 0.36 Hong Kong dollars. On the news front, data released by the National Bureau of Statistics showed that new home sales and indicators such as construction starts continued to be under pressure. In April, sales area, development investment, and construction area all saw a larger year-on-year decline compared to the previous year, while sales amount and completed area saw a narrower decline. The performance of both first-hand and second-hand home transactions continued to adjust, with second-hand home prices in Beijing, Shanghai, Guangzhou, and Shenzhen rising month-on-month in April, with Shanghai leading the way with a 0.7% increase. Ping An Securities released a research report stating that the real estate sector continued to adjust this week, falling 3.69% in a single week. The current market focus remains on the fundamentals, and coupled with the accumulated gains in the sector since April, some investors are skeptical about the sustainability of stabilization in first-tier real estate markets and may choose to take profits. In the short term, the sector is expected to enter a new round of fundamental observation period. In the absence of new catalytic backgrounds, the sector is expected to mainly fluctuate. From a medium-term perspective, we believe that the market's divergence indicates differences in expectations, and once the market forms a consensus on the turning point in the real estate market, the sector still has significant upside potential.