Jinwu Financial News | According to a report issued by Morgan Stanley, sales of major real estate developers in the mainland were better than expected during the 11th Golden Week, with an average year-on-year increase of 39%, or 86% of September contract sales. It is expected that double-digit monthly growth will be recorded, and the year-on-year decline will narrow. Among them, China Resources Land (01109), Greentown China (03900), China Overseas Development (00688), C&D International Group (01908), and Yuexiu Real Estate (00123) performed well. The bank expects a strong trend in the coming weeks as sentiment improves, but sales sustainability remains the key to supporting the industry to outperform the market.
The bank advises investors to increase their holdings in real estate and consumer stocks, such as China Resources Land and China Resources Vientiane Life (01209). Their stock prices have recently risen due to improved investor sentiment, and the industry may experience a correction. At the same time, they prefer highly defensive developers, such as China Overseas, Greentown China, and Yuexiu Real Estate, which may also outperform the market due to strong sales in the fourth quarter. Due to potentially strong sales in the fourth quarter.
