Market Insight | Real estate stocks generally open higher, Shimao Group rises by over 8%, Shanghai's new real estate policies exceed expectations
Real estate stocks generally opened higher, with Shimao Group, Sunac China, Sunac China, and Vanke Enterprises seeing significant gains. Shanghai Municipality has issued new real estate policy measures, with a strength exceeding expectations, indicating the determination and strength of the central government's support for the real estate market. Even though fundamental repairs will take time, real estate stocks are expected to experience a rapid rebound after market expectations improve
Intelligence Finance App learned that real estate stocks generally opened higher. As of the time of publication, Shimao Group (00813) rose by 8.33% to HKD 1.17, Sunac China (00884) rose by 5.81% to HKD 0.455, Sunac China (01918) rose by 4.64% to HKD 1.58, and Vanke (02202) rose by 2.95% to HKD 6.29.
On the news front, on May 27th, the Shanghai Municipal Housing and Urban-Rural Development Commission and four other departments jointly issued the "Notice on Optimizing Policies and Measures for the Stable and Healthy Development of the City's Real Estate Market," proposing adjustments to optimize housing purchase restrictions, support housing needs of families with multiple children, optimize housing credit policies, support "old for new" initiatives, and optimize land and housing supply policies. Ping An Securities believes that the policy intensity of "5.17" has exceeded that of 2008 and 2014-2015. The "527 New Policy" in Shanghai is also the most supportive policy since 2011, reflecting the central government's strong determination to destock and stabilize the market. If the subsequent stabilization of the property market falls short of expectations, there is still hope for greater policy support.
Guojin Securities pointed out that recently, there have been intensive top-down policies, and the relaxation of the Shanghai policy this time exceeded expectations, changing the previous expectation that purchase restrictions in Beijing and Shanghai would not be relaxed. The bank believes that a series of recent policies fully demonstrate the central government's determination and strength to support the stabilization of the real estate market. Furthermore, future policies and major adjustments are still expected, which may continue to improve market expectations for the real estate sector and boost confidence comprehensively. The bank believes that although the recovery of fundamentals will take time, stock prices usually respond faster than fundamental recovery. After market expectations improve or confidence is restored, real estate stocks are expected to experience a rapid rebound