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On January 29, reports indicated that the mainland real estate stocks continued their upward trend from the previous day. As of press time, $SUNAC (01918.HK)$ surged over 20%, $SHIMAO GROUP (00813.HK)$ rose more than 13%, $RONSHINECHINA (03301.HK)$ 、 $COUNTRY GARDEN (02007.HK)$ increased by over 12%. $GREENTOWN CHINA (03900.HK)$ 、 $R&F PROPERTIES (02777.HK)$ 、 $CHINA VANKE (02202.HK)$Wait for the rise.
In terms of market news, according to Cailian Press, some real estate companies have been informed that they are no longer required by regulators to submit the ‘three red lines’ indicators on a monthly basis. However, some distressed real estate companies are required to periodically report financial indicators such as asset-liability ratios to special task forces in the cities where their headquarters are located. Additionally, since the beginning of the year, several leading real estate companies have made substantial progress in debt resolution.
Some analysts pointed out that, simply put, this easing is a targeted measure aimed at providing a more accommodating operating environment for real estate companies striving to self-rescue, restoring market confidence, and promoting the industry’s transition towards ‘high-quality development.’ Its effects are more likely to prevent the financial chains of quality real estate firms from deteriorating further, rather than stimulating the entire industry to return to expansion.
Institutional opinions suggest that the alleviation of pressure on leading enterprises could help stabilize expectations in the short term. Coupled with the recent rise in expectations regarding property policies, this creates opportunities for valuation recovery in real estate stocks. BOCI Securities believes that the current real estate sector still faces certain pressures. It is expected that appropriate policy adjustments might occur by the end of the first quarter of 2026. If the policy direction is clear and adjustments are effective, the downward trend in the market may begin to narrow starting from the second quarter. The sector holds certain allocation value in 2026.
Editor/Rice
