HK Stock Market Move | CHINA STATE CON(03311) rises nearly 3%; Citi says the company benefits from property reform and plans to increase capital expenditure to expand MiC production capacity.

CHINA STATE CON(03311) rose nearly 3%, up 1.77% as of press time, at HK$8.625, with a turnover of HK$57.0907 million. On the news front, Citi released a research report pointing out that two favorable policies are beneficial to the company: the reform of China's property pre-sale system, and Hong Kong's increase in the penetration rate of Modular Integrated Construction (MiC) for public housing with a target of 70,000 public housing units over the next five years. CHINA STATE CON plans to increase capital expenditure to expand MiC production capacity in Beijing, Shanghai, and Guangzhou to meet potentially higher-than-expected demand from mainland China and Hong Kong. Citi stated that according to an August-end notice, China plans to shift the real estate market from the pre-sale model to completed-home sales, which will prompt developers to adopt MiC more extensively, shortening construction periods from the traditional two to three years to about nine months, benefiting the company given its leading position in MiC in mainland China and Hong Kong. Hong Kong's first "Five-Year Plan" shows that land ready for immediate development in the Northern Metropolis will increase to 900 hectares in 2030-31, supporting over 70,000 public housing units; the company has accumulated over HK$100 billion in Northern Metropolis orders. The Five-Year Plan also requires that at least half of public housing from 2026/27 to 2030/31 be built using MiC.