HK Stock Market Move | Inner market shares continue to decline as institutions indicate that the momentum of demand recovery is weakening. With the off season approaching, trading volume and prices may come under pressure.

The Nafang stocks continued to fall. As of the time of writing, C&D INTL GROUP (01908) fell by 4.39% to HKD 12.42; CHINA RES LAND (01109) fell by 3.12% to HKD 29.84; SEAZEN (01030) fell by 2.88% to HKD 1.35; and R&F PROPERTIES (02777) fell by 2.64% to HKD 0.221. On the news front, data from the National Bureau of Statistics shows that the year-on-year decline in sales area and sales amount has narrowed from -13.5% and -20.2% in the first two months to -10.8% and -13.5% in the first five months. Real estate development investment completion amount year-on-year decline has increased from -11.1% to -16.2%. China Post Securities pointed out that the narrowing decline in sales data indicates that market demand is slowly recovering under the continued optimization of policies, while investment data reflects that developers' investment willingness is still weak and industry confidence recovery will still take time. China International Capital Corporation stated that since the concentrated release of demand in March, momentum has gradually started to weaken. The upcoming traditional off-season may have a certain impact on transaction volume and prices. Recent high-premium land parcels in Shanghai and Shenzhen have brought some heat to the land market, mainly due to property developers buying back inventory. The bank believes that in the short term, high-quality products in scarce locations in core cities may still have opportunities, but in the long term, it still requires the stabilization of second-hand housing prices first.