HK Stock Market Move | Mainland property stocks collectively retreat; mortgage interest subsidy rumors ignite the market; industry insiders believe the policy is unlikely to be implemented.

Mainland property stocks collectively retreat. As of press time, SUNAC (01918) fell 4.58% to HK$0.625; SEAZEN (01030) fell 2.97% to HK$1.47; GREENTOWN CHINA (03900) fell 2.64% to HK$5.905; C&D INTL GROUP (01908) fell 1.35% to HK$12.4. On the news front, the real estate sector surged across the board on September 23. According to Yicai, market rumors suggest that a nationwide interest subsidy policy will be implemented, with the Ministry of Finance and local governments jointly providing subsidies of up to 100 basis points, pushing the interest rate on first-home mortgages down to 2%. Another version claims a total quota of 100 billion yuan with a 20-basis-point subsidy. It is worth noting that multiple securities firm real estate industry analysts take a cautious stance on the above rumors, believing that the likelihood of a nationwide interest subsidy policy being implemented is low. One analyst said, "At the national level, extending the loan term is actually similar to the interest reduced by interest subsidies/rate cuts." JPMorgan also stated that even if the policy is implemented, the actual effect is highly dependent on scale and execution details, and cap limits may significantly compress the substantive stimulus intensity.