On August 9th, mainland real estate stocks rose across the board in early trading. As of the time of writing, China Resources Land increased by 12.86%, reporting at HK$0.79; China Overseas Land and Investment increased by 7.58%, reporting at HK$0.355; Country Garden increased by 6.08%, reporting at HK$4.36; Longfor Properties increased by 4.81%, reporting at HK$1.09; and Sunac China increased by 5.19%, reporting at HK$0.81. $SHIMAO GROUP (00813.HK)$ increased by 12.86%, reporting at HK$0.79; $SINO-OCEAN GP (03377.HK)$ increased by 7.58%, reporting at HK$0.355; $CHINA VANKE (02202.HK)$ increased by 6.08%, reporting at HK$4.36;$SUNAC (01918.HK)$ increased by 4.81%, reporting at HK$1.09;$R&F PROPERTIES (02777.HK)$ increased by 5.19%, reporting at HK$0.81.
On the news front, Shenzhen Anju Group announced that it plans to purchase commercial properties for use as affordable housing. The relevant announcement sets out requirements for the region, supporting facilities, unit types, and specifically requires that the project must meet the loan requirements of financial institutions. The collection requirements prioritize the selection of unsold units or entire buildings that can be closed off for management. The nature of the property includes not only pure residential properties, but also apartments, dormitories, etc.
CITIC Securities stated that it is expected that the acquisition of existing commercial properties as affordable housing projects will accelerate significantly after September, with bank loans over 500 billion yuan expected to be available later this year. Various regions will focus on acquiring a batch of small-unit, well-located existing residential properties and apartments (mixed-use buildings) that have already been built and can be sold in their entirety. This work is helpful in optimizing the asset-liability ratio of real estate companies and reducing risks in the real estate industry.
