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China’s new home sales remained subdued during the week of September 4 – 10, with sales by floor area in China’s 54 major cities falling 29% from the previous week, down 20% from a month ago and sliding 30% from a year earlier, said CICC in a research note.
Second-hand home sales in China’s 15 major cities declined by 3% in the week from the previous week, down 2% from a month earlier but rising 2% from a year earlier, it said.
Some leading cities fared better during the week due to the introduction of accommodative policy measures, it said. New home sales in Shenzhen, Beijing, Chengdu, Qingdao and Nanjing grew week on week, it said.
Several cities last week introduced policy to support home demand, more cities including Hangzhou and Hefei adopted the policy to use home ownership instead of mortgage record to recognize first-home qualification, and several cities removed all restrictions on home purchases, and many cities lower downpayment requirements.
CICC remained upbeat on A-shares and H-shares onf Chinese homebuilders, believing Hong Kong-listed Chinese developers to be more resilient that their A-share peers due to more undemanding valuation. CICC was optimistic about Chinese real estate stocks in the next 3 – 6 months considering the steep correction in the sector since July and the cost-effective valuation.
Longfro Group, Greentown China, China Overseas Land and Investment, China Resources Land, C&D International Group, and Yuexiu Property were selected as the H-share top picks.