Jingu Wealth News | Mainland real estate stocks started strong, as of the time of publication, Radiance Hldgs (09993) rose by 19.88%, Sunac (01918) rose by 8.71%, Zhongliang Hldg (02772) rose by 10.97%, China Overseas (00688) rose by 7.4%, R&F Properties (02777) rose by 6.82%.
On the news front, on October 12th, the State Council Information Office held a press conference where the Ministry of Finance introduced the relevant situation of "increasing the counter-cyclical adjustment of fiscal policies and promoting high-quality economic development." It pointed out that it will "successively introduce a package of targeted incremental policy measures in the near future", and explicitly outlined four major aspects, with measures for real estate being one important area, reflecting the significance of the real estate industry. Regarding real estate, the Ministry of Finance stated that it will "superimpose the use of local government special bonds, special funds, tax policies, and other tools to support the stabilization of the real estate market", and "will adhere to strict control of increments, optimization of existing stock, and enhancement of quality, actively researching and introducing policies and measures conducive to the stable development of the real estate sector." Specifically, the Ministry of Finance defined the future direction of real estate fiscal policies from three aspects, including allowing special bonds to be used for land reserves, allowing special bonds to purchase existing housing stock, and optimizing and improving related tax policies.
Citic Sec believes that with the gradual restoration of confidence spreading outward from core cities and core areas, the real estate market in China will achieve stabilization in 2024, including the stabilization of property prices. Due to the attitude of strict control over increments and the fact of tight funding for development enterprises, based on historical experience, the bank believes that the recovery of new construction will take more than 6 months, and the recovery of completed area will require more than 18 months.
