HK Stock Market Move | Mainland property stocks fluctuate upward; the era of real estate inventory is clearly defined; experts expect a supply gap in the industry over the medium term.

Mainland property stocks fluctuated upward. As of press time, SUNAC (01918) rose 5.74% to HK$0.645; RONSHINECHINA (03301) rose 4.62% to HK$0.068; CHINA VANKE (02202) rose 4.04% to HK$2.445; COUNTRY GARDEN (02007) rose 2.87% to HK$0.179. On the news front, on September 18, the State Council Information Office held a press conference on housing and urban-rural development under the 15th Five-Year Plan. The meeting mainly mentioned that the real estate market is showing "two transformations": major changes have occurred in the supply-demand relationship; the share of second-hand housing transactions increased from 27% in 2020 to 46% in 2025, and has already reached 52% in the first eight months of 2026, entering an era of existing-home inventory. In addition, on September 20, the newly revised Regulations on the Administration of Housing Provident Funds officially came into effect. Analysts pointed out that this reform marks a shift in the housing provident fund system from focusing on supporting home purchases to formally covering the full life cycle of housing consumption, including purchase, rental, renovation, and maintenance, further highlighting the system's inclusiveness. A Goldman Sachs report noted that the bank invited Dr. Ding Zuyu, Chairman of Shanghai Prism Digital Intelligence Technology Co., Ltd. and President of the Shanghai E-House Real Estate Research Institute, as the third speaker in its 2026 China property expert conference call series. Dr. Ding expects short-term supply in the property market to be roughly balanced, as developers rushed to obtain construction/pre-sale permits before August 28, but due to the impact of sales model reform, a significant supply shortage is expected from March 2027 lasting 12 to 18 months, after which the market may gradually stabilize over about two years.