Hong Kong stocks fluctuate | Real estate stocks opened higher in the morning, and the expression "housing is for living, not for speculation" was not mentioned for the first time in the July Political Bureau meeting, emphasizing changes in supply and demand.
Longbridge Dolphin shares opened higher in the morning session. As of the time of writing, Longbridge Dolphin has risen by 14.88% to HKD 16.98; Country Garden has risen by 11.11% to HKD 1.4; Seazen has risen by 9.45% to HKD 1.39.
According to the information obtained from the Zhongtong Finance APP, real estate stocks opened higher in the morning session. As of the time of writing, Longfor Group (00960) rose 14.88% to HKD 16.98; Country Garden (02007) rose 11.11% to HKD 1.4; Xin Cheng Development (01030) rose 9.45% to HKD 1.39; Sunac China (01918) rose 7.14% to HKD 1.2; and Agile Group (03383) rose 5.56% to HKD 1.14.
In terms of news, the Political Bureau of the Communist Party of China held a meeting on July 24, stating that it is necessary to effectively prevent and resolve risks in key areas, adapt to the new situation of significant changes in the supply and demand relationship in China's real estate market, timely adjust and optimize real estate policies, implement differentiated policies according to local conditions, make better efforts to meet the rigid and improvement housing needs of residents, and promote the stable and healthy development of the real estate market. It is also necessary to increase the construction and supply of affordable housing, actively promote the transformation of urban villages and the construction of "dual-use" public infrastructure, and revitalize and transform various idle properties.
Sinolink Securities pointed out that the core change of this Political Bureau meeting is that it did not mention the phrase "housing is for living, not for speculation" for the first time. The bank believes that this adjustment in expression may indicate support for the restoration of prices in cities where prices have fallen excessively. In addition, it emphasized that there have been significant changes in the supply and demand relationship, and recognized the changes in the supply and demand relationship in the real estate market. The bank believes that the current market has a heavy pessimistic sentiment towards the real estate sector and doubts the characteristics of the real estate cycle. Therefore, the bank believes that prices have fully reflected the market's pessimistic consensus and are unlikely to experience a significant decline. With the stimulation of loose policies and improvements in the urban supply and demand structure, some cities or sectors with alpha potential are expected to rise first in the second half of the year (the key lies in the loosening of the pessimistic consensus).