HSBC Research: Easing Restrictions in Shanghai Real Estate Market Enhances Confidence, Favors CRL, C&D, and Seazen
Shanghai Housing Policy Changes: HSBC Global Investment Research reported that Shanghai has relaxed home purchase restrictions and increased housing provident fund support, aiming to boost market confidence and stabilize housing prices.
Market Timing: The implementation of these policies coincides with the upcoming sales peak, which is expected to sustain strong momentum in the housing sector.
Investment Recommendations: CLSA predicts that Chinese developers will outperform Hong Kong homebuilders this year, favoring stocks like CHINA RES LAND, C&D INTL GROUP, and SEAZEN, all rated as Buy.
Hold Rating on CHINA OVERSEAS: HSBC assigned a Hold rating to CHINA OVERSEAS, noting its concentrated land reserves in Tier 1 cities, which may benefit from the property market recovery, with a target price set at HKD14.7.
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<Study> JPM Ratings and Target Prices for Chinese Property Developers/Managers (Table)
Chinese Property Developers Performance: Several Chinese property developers, including CHINA RES LAND and CHINA OVERSEAS, are rated as "Overweight" despite experiencing slight declines in share prices and notable short selling activity.
Market Reactions and Predictions: Analysts from JPM and UBS predict that easing property market restrictions in Shanghai may have limited effects on trading, with specific stocks like CHINA RES LAND and CHINA JINMAO being highlighted as top picks.
Chinese Property Managers Overview: Among property management companies, CHINA RES MIXC and POLY PPT SER are rated "Overweight," while others like A-LIVING and SUNAC SERVICES are rated "Underweight," indicating mixed investor sentiment.
Short Selling Trends: The report highlights significant short selling ratios across various companies, with some developers and managers facing higher short selling activity, reflecting market caution.
JPM: Anticipated Relaxation of Property Market Purchase Restrictions in SH; Recommended Stocks Include CHINA RES LAND, CHINA RES MIXC, and CHINA JINMAO
New Home Purchase Policies in Shanghai: JPMorgan reported that Shanghai has introduced favorable home purchase policies, easing restrictions for non-locals and allowing additional unit purchases for residents with three years of tax proof.
Comparison with Beijing Measures: The broker noted that Shanghai's measures are stronger than those implemented in Beijing last December, predicting stabilization in trading volume and prices over the next 1-2 months.
Sustainable Recovery Concerns: Despite the new policies, JPMorgan does not believe they will lead to a sustainable recovery in China's real estate market, with Shenzhen expected to be the next city to ease restrictions.
Top Stock Picks: JPMorgan's top stock picks include CHINA RES LAND, CHINA RES MIXC, and CHINA JINMAO, while suggesting that CHINA OVERSEAS could catch up as it has lagged behind.
HSBC Research: Easing Restrictions in Shanghai Real Estate Market Enhances Confidence, Favors CRL, C&D, and Seazen
Shanghai Housing Policy Changes: HSBC Global Investment Research reported that Shanghai has relaxed home purchase restrictions and increased housing provident fund support, aiming to boost market confidence and stabilize housing prices.
Market Timing: The implementation of these policies coincides with the upcoming sales peak, which is expected to sustain strong momentum in the housing sector.
Investment Recommendations: CLSA predicts that Chinese developers will outperform Hong Kong homebuilders this year, favoring stocks like CHINA RES LAND, C&D INTL GROUP, and SEAZEN, all rated as Buy.
Hold Rating on CHINA OVERSEAS: HSBC assigned a Hold rating to CHINA OVERSEAS, noting its concentrated land reserves in Tier 1 cities, which may benefit from the property market recovery, with a target price set at HKD14.7.
LandsD Reports 8 Bids for Shau Kei Wan Main Street East Site
Tender Announcement: The Lands Department of Hong Kong revealed that a site on Shau Kei Wan Main Street East received 8 tender documents from various developers, including K. WAH INT'L, CHI MER LAND, SINO LAND, and CHINA OVERSEAS.
Market Valuation: The estimated market valuation for the site ranges from approximately $790 million to $1.19 billion, with an accommodation value of about $5,300 to $8,000 per square foot.
Short Selling Data: The article provides short selling data for the participating developers, indicating varying levels of short selling activity and ratios, with China Overseas showing the highest short selling ratio at 41.807%.
Market Insights: UBS has commented on the valuation of Hong Kong homebuilders, suggesting that they are becoming expensive, and recommends stock selection favoring low debt, high dividends, and buyback themes.
CHINA OVERSEAS Secures Residential Site on Choi Ha Road, Ngau Tau Kok for Over $1.806 Billion
Tender Award Announcement: The Lands Department awarded the tender for New Kowloon Inland Lot No. 6675 to Maxjet Company Limited for a premium of $1.80688 billion on a 50-year land grant.
Bidding Details: The tender closed with nine bids, with market estimates for the site ranging between $1.14 billion and $1.8 billion.
HSI Gains 12 Points, Yet Software Stocks and Dotcoms Decline; Coal and Chinese Developers Surge
Market Performance: The HSI closed slightly up at 26,847, while the HSCEI and HSTECH saw minor declines, with total market turnover dropping to $285.433 billion.
Sector Struggles: Software and dotcom sectors faced significant losses, with major companies like TENCENT and MEITU experiencing declines of 3.96% and 11.4%, respectively.
Resource Stocks Rise: Gold and silver prices rebounded, with companies like CHINAGOLDINTL and ZHAOJIN MINING seeing gains, while coal stocks like YANKUANG ENERGY surged by over 10%.
Financial Sector Movements: HSBC and AIA saw slight increases, while HKEX experienced a minor decline; Chinese property developers generally performed well, with several stocks rising between 5% and 10%.
<Study> JPM Ratings and Target Prices for Chinese Property Developers/Managers (Table)
Chinese Property Developers Performance: Several Chinese property developers, including CHINA RES LAND and CHINA OVERSEAS, are rated as "Overweight" despite experiencing slight declines in share prices and notable short selling activity.
Market Reactions and Predictions: Analysts from JPM and UBS predict that easing property market restrictions in Shanghai may have limited effects on trading, with specific stocks like CHINA RES LAND and CHINA JINMAO being highlighted as top picks.
Chinese Property Managers Overview: Among property management companies, CHINA RES MIXC and POLY PPT SER are rated "Overweight," while others like A-LIVING and SUNAC SERVICES are rated "Underweight," indicating mixed investor sentiment.
Short Selling Trends: The report highlights significant short selling ratios across various companies, with some developers and managers facing higher short selling activity, reflecting market caution.
JPM: Anticipated Relaxation of Property Market Purchase Restrictions in SH; Recommended Stocks Include CHINA RES LAND, CHINA RES MIXC, and CHINA JINMAO
New Home Purchase Policies in Shanghai: JPMorgan reported that Shanghai has introduced favorable home purchase policies, easing restrictions for non-locals and allowing additional unit purchases for residents with three years of tax proof.
Comparison with Beijing Measures: The broker noted that Shanghai's measures are stronger than those implemented in Beijing last December, predicting stabilization in trading volume and prices over the next 1-2 months.
Sustainable Recovery Concerns: Despite the new policies, JPMorgan does not believe they will lead to a sustainable recovery in China's real estate market, with Shenzhen expected to be the next city to ease restrictions.
Top Stock Picks: JPMorgan's top stock picks include CHINA RES LAND, CHINA RES MIXC, and CHINA JINMAO, while suggesting that CHINA OVERSEAS could catch up as it has lagged behind.
HSBC Research: Easing Restrictions in Shanghai Real Estate Market Enhances Confidence, Favors CRL, C&D, and Seazen
Shanghai Housing Policy Changes: HSBC Global Investment Research reported that Shanghai has relaxed home purchase restrictions and increased housing provident fund support, aiming to boost market confidence and stabilize housing prices.
Market Timing: The implementation of these policies coincides with the upcoming sales peak, which is expected to sustain strong momentum in the housing sector.
Investment Recommendations: CLSA predicts that Chinese developers will outperform Hong Kong homebuilders this year, favoring stocks like CHINA RES LAND, C&D INTL GROUP, and SEAZEN, all rated as Buy.
Hold Rating on CHINA OVERSEAS: HSBC assigned a Hold rating to CHINA OVERSEAS, noting its concentrated land reserves in Tier 1 cities, which may benefit from the property market recovery, with a target price set at HKD14.7.
LandsD Reports 8 Bids for Shau Kei Wan Main Street East Site
Tender Announcement: The Lands Department of Hong Kong revealed that a site on Shau Kei Wan Main Street East received 8 tender documents from various developers, including K. WAH INT'L, CHI MER LAND, SINO LAND, and CHINA OVERSEAS.
Market Valuation: The estimated market valuation for the site ranges from approximately $790 million to $1.19 billion, with an accommodation value of about $5,300 to $8,000 per square foot.
Short Selling Data: The article provides short selling data for the participating developers, indicating varying levels of short selling activity and ratios, with China Overseas showing the highest short selling ratio at 41.807%.
Market Insights: UBS has commented on the valuation of Hong Kong homebuilders, suggesting that they are becoming expensive, and recommends stock selection favoring low debt, high dividends, and buyback themes.
CHINA OVERSEAS Secures Residential Site on Choi Ha Road, Ngau Tau Kok for Over $1.806 Billion
Tender Award Announcement: The Lands Department awarded the tender for New Kowloon Inland Lot No. 6675 to Maxjet Company Limited for a premium of $1.80688 billion on a 50-year land grant.
Bidding Details: The tender closed with nine bids, with market estimates for the site ranging between $1.14 billion and $1.8 billion.
HSI Gains 12 Points, Yet Software Stocks and Dotcoms Decline; Coal and Chinese Developers Surge
Market Performance: The HSI closed slightly up at 26,847, while the HSCEI and HSTECH saw minor declines, with total market turnover dropping to $285.433 billion.
Sector Struggles: Software and dotcom sectors faced significant losses, with major companies like TENCENT and MEITU experiencing declines of 3.96% and 11.4%, respectively.
Resource Stocks Rise: Gold and silver prices rebounded, with companies like CHINAGOLDINTL and ZHAOJIN MINING seeing gains, while coal stocks like YANKUANG ENERGY surged by over 10%.
Financial Sector Movements: HSBC and AIA saw slight increases, while HKEX experienced a minor decline; Chinese property developers generally performed well, with several stocks rising between 5% and 10%.
