00604 Overview

Citi's Ratings for Chinese Property Developers: Citi has provided investment ratings and target prices for various Chinese property developers, with ratings ranging from "Buy" to "Sell/High Risk" based on their performance and short selling ratios.

Target Prices Overview: Target prices for selected developers include Agile Group at HKD 0.53, C&D International Group at HKD 22.5, and China Overseas at HKD 17.2, reflecting varying levels of investor confidence.

Citi's Ratings for Brokerage Platforms: The investment ratings for Chinese brokerage platforms and project managers also indicate a "Buy" recommendation for companies like KE Holdings and Greentown Management, with target prices set at USD 22.6 and HKD 3.45, respectively.

Market Reactions and Short Selling: The report highlights significant short selling activity across various stocks, indicating market volatility and investor caution, particularly in the context of the Chinese real estate sector.

Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with Agile Group and C&D International Group experiencing slight gains, while CIFI Hold GP and China Jinmao saw declines.

Investment Ratings: Investment ratings varied across companies, with several stocks like C&D International Group and China Overseas rated as "Buy," while others like CIFI Hold GP and Country Garden were rated as "Sell (High Risk)."

Short Selling Activity: Significant short selling activity was noted, particularly in stocks like KE Holdings and C&D International Group, indicating investor caution or bearish sentiment.

Market Insights: JPMorgan highlighted that mortgage subsidies alone may not be enough to revitalize the Chinese property market, suggesting a need for broader measures to attract investor confidence.

Third Quarter Performance: In Q3 2025, SHENZHEN INVEST reported unaudited contracted sales of approximately RMB3.025 billion, covering a sales area of about 128,700 square meters.

Year-to-Date Growth: For the first three quarters of 2025, total unaudited contracted sales reached approximately RMB9.838 billion, marking a 24% year-over-year increase, with a total sales area of about 428,200 square meters, up 36.3% YoY.

Average Price per Square Meter: The average price per square meter for the contracted sales was approximately RMB22,973.

Short Selling Data: As of November 3, 2025, short selling amounted to $899.62K with a ratio of 3.051%.

Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with Agile Group and Greentown China experiencing declines, while Shenzhen Invest saw an increase.

Short Selling Activity: Significant short selling was noted in several companies, including China Overseas and China Res Land, with ratios indicating a high level of investor skepticism.

Analyst Ratings: Analysts have assigned "Hold" ratings to several companies like Agile Group and China Vanke, while C&D International Group and China Res Land received "Buy" ratings.

Market Forecast Adjustments: Morgan Stanley has lowered sales forecasts for China Vanke, adjusting the target price to HK$4.28, reflecting a cautious outlook on the company's performance.

Financial Performance: Shenzhen Invest (00604.HK) anticipates an unaudited consolidated net loss of approximately HKD2.5-2.7 billion for the six months ending June 30, 2025, a significant increase from last year's loss of around HKD1.1 billion.

Impairment Loss Impact: The expected rise in net loss is largely attributed to a substantial impairment loss on its interest in ROAD KING INFRA (01098.HK) and an increased share of loss from this investment.

Future Outlook: Despite the anticipated losses, sufficient provisions for impairment losses on the long-term equity investment in ROAD KING INFRA are expected to mitigate significant negative impacts on Shenzhen Invest's performance moving forward.

Market Data: As of August 22, 2025, short selling activity for Shenzhen Invest was reported at $3.33 million with a ratio of 16.914%.