Jinwu Financial News | CMB International said that Shanghai, Guangzhou and Shenzhen have promoted policy relaxation in terms of purchase restrictions and loans. By analyzing the relaxation schedules and details of the four cities, the bank believes that Beijing still has room to relax in terms of purchase restrictions and down payment ratios. The bank believes that 1) from a sales perspective, the policy may marginally boost sales, because it does release some potential purchasing power, and 2) from an emotional point of view, the pace of policy introduction may make more first-tier or low-energy buyers think that the market is close to the bottom, thereby speeding up the process of entering the market.
Since mid-May, the new and second-hand housing markets in Chengdu and Hangzhou have shown signs of restoration, and the second-hand housing market in Beijing has also shown a positive trend over the past week. The bank anticipates that sales in June may have been favored by the policy to a certain extent, so that the second quarter showed better transaction data than the first quarter. Furthermore, considering that support policies may be introduced in due course in the future, in the medium to long term, the bank believes that the industry will continue its recovery trend, and investors are advised to buy on dips. In terms of stock selection, the bank favors the beneficiaries of the stock market: property management companies China Resources Vientiane Life (01209), Poly Industries (06049), Binjiang Services (03316) and Wanwuyun (02602), the intermediary platform BEKE.US (BEKE.US), the construction company Greentown Management (09979), and China Resources Land (01109), which has long-term holding value among developers.