Jinwu Financial News | CMB International said it is optimistic about the real estate and property management sector. The bank saw Beijing cut the down payment ratio by 10-15 percentage points and the mortgage interest rate cut by 30-55 basis points. In line with the bank's previous expectations, the minimum down payment ratio and mortgage interest rate limits in Beijing have been reduced to the same level as in Shanghai and Shenzhen. In terms of the purchase restriction policy, it can be clearly seen from the bank's policy relaxation schedule that there is still some room in Beijing, Shenzhen, and Shanghai. As of June 26, looking at the average daily transaction area before and after the 517 New Deal, new homes in 30 cities and second-hand housing in 17 cities were all +25%, which may be affected by factors such as the stimulus of the New Deal, centralized online signings at the end of the year, and a low base. The bank's “First-tier City Transaction Observation” shows that in terms of new housing, the four first-tier cities performed well in the 25th week (6.17-6.23). The number of units sold in the 25th week of Shanghai, Shenzhen, Guangzhou, and Beijing respectively exceeded their average weekly levels of 82%, 51%, 36%, and 7% during the year (excluding holiday weeks). Shenzhen recorded the highest number of the year this week, and Shanghai recorded the second highest in the year. In terms of second-hand housing, the number of units sold in the 25th week of Shanghai, Shenzhen, Beijing, and Guangzhou respectively exceeded their average weekly levels of 42%, 31%, 21%, and 16% during the year (excluding holiday weeks). Shanghai once again recorded the second highest weekly transaction of the year. As of June 26, Shanghai sold 220.73 million units this month. June is expected to record the highest month in 3 years. This may be due to Shanghai's liberalization of second-hand housing purchase restrictions in the outer ring for non-Shanghai singles a month ago, and some properties fell out of value for money.
Considering that collection and storage will also actively research and advance to achieve the inventory removal target, the bank expects sales to maintain the current steady, moderate, and slight increase in the month-on-month trend, and that sector stock prices will maintain a recovery trend in the medium to long term. It is recommended to buy high-quality products on dips. In terms of stock selection, the bank favors property management companies China Resources Vientiane Life (01209), Poly Industries (06049), Binjiang Services (03316) and Wanwuyun (02602), intermediary platform BEKE US (BEKE US), construction company Greentown Management (09979), and China Resources Land (01109), which has long-term holding value among developers.