HK Stock Market Move | Some inner property stocks rose in the afternoon as multiple departments in Shanghai jointly issued the "Eight Regulations" to optimize real estate control policies.

Some domestic property stocks rose in the afternoon. As of the time of writing, LONGFOR GROUP (00960) was up 5.2%, trading at HKD 6.78; COUNTRY GARDEN (02007) rose 4.05%, trading at HKD 0.18; CHINA VANKE (02202) increased 3.38%, trading at HKD 2.445; and SEAZEN (01030) went up 2.57%, trading at HKD 1.395. In terms of news, on August 20, the Shanghai Municipal Housing and Urban-Rural Development Commission, the Shanghai Housing Administration Bureau, the Shanghai Housing Provident Fund Management Center, and four other departments jointly issued the "Eight Policies" for the real estate market, which mainly include five areas: optimizing the withdrawal of housing provident funds, optimizing personal housing credit, implementing subsidies for replacing old homes with new ones, promoting housing vouchers, and advancing the acquisition of second-hand housing. Guosen released a research report stating that there was a marginal improvement in real estate sales volume and prices in July, and the trend of fundamental improvement continues to accumulate momentum for the rise of property stocks. Considering that the current discount on property stocks has already priced in an excessively pessimistic view of future price declines, we reaffirm that property stocks have value potential and that prices are at a medium-term bottom. We recommend selectively investing in targets that are proactive in land acquisition, have reasonable layouts, and offer substantial discounts.