HK Stock Market Move | Mainland property stocks collectively rebound; total real estate market transaction volume is stabilizing; institutions say the price trend is relatively positive.

Mainland property stocks collectively rebound. As of press time, GREENTOWN CHINA (03900) rose 5.69% to HK$5.85; LONGFOR GROUP (00960) rose 4.29% to HK$5.475; CIFI HOLD GP (00884) rose 3.23% to HK$0.032; SEAZEN (01030) rose 2.55% to HK$1.405. On the news front, data released by the National Bureau of Statistics on the 15th showed that in August, among the 70 large and medium-sized cities, commodity residential sales prices in first-tier cities rose month-on-month, while the month-on-month declines in second- and third-tier cities generally narrowed. Fu Linghui, spokesperson for the National Bureau of Statistics, chief economist, and director of the Department of Comprehensive Statistics of the National Economy, said the same day at a press conference held by the State Council Information Office that although transactions of newly built commercial housing decreased, with the increase in second-hand housing transactions, the total transaction volume in the real estate market is stabilizing. Guosen pointed out that the overall real estate fundamental indicators in August were relatively weak, but the price trend is relatively positive. Considering that the current discount level of property stocks has fully, or even excessively, priced in pessimism over future housing price declines, we reiterate that property stocks have value room and that share prices are at a mid-term bottom. Although the new rules on sales of completed housing introduced on August 28 dealt a shock to market sentiment, we believe the policy intensity is relatively moderate and that its long-term impact on the industry does more good than harm.