Financial Services Association, November 7 (Editor: Feng Yi) Today, Hong Kong's domestic housing stocks are soaring again, becoming an intraday highlight.

As of press release, Shimao Group (00813.HK) rose more than 29%, R&F Real Estate (02777.HK) rose more than 23%, Jinhui Holdings (09993.HK), and Rongxin China (03301.HK) both rose more than 20%. Housing companies such as Ocean Group (03377.HK) and Agile Group (03383.HK) also saw double-digit increases.

According to the news, in October, the sales area of new homes across the country increased for the first time after several months of continuous year-on-year decline, and the total number of new and second-hand housing transactions surpassed “Golden 9” for the first time in 17 years.

In addition, Dan Ge, an analyst at Huachuang Securities, also pointed out in the November 6 report. According to the sales and land acquisition data of the top 100 housing enterprises released by Kerui, the equity sales amount of the top 100 housing enterprises in October was 343.3 billion yuan, up 9.9% year-on-year and 46% month-on-month.

However, it should be noted that since the “combo punch” of real estate-related policies has continued to be introduced and implemented at an accelerated pace since September, the actual market already has certain expectations for the property market to stabilize in October. Currently, differences over the domestic housing stock market focus on the continuation of the recovery in the property market.

According to Huaxi Securities tracking data, in the last week of October (October 25-31), the transaction area of new homes in 50 cities increased 19% month-on-month, and the transaction volume was about 85% of the high during the year. Transactions are gaining momentum, and the popularity of new homes continues.

On the other hand, in many “incremental policies” supporting real estate, stock housing collection and storage is also a driving factor that has received much attention in the short term.

According to reports, after the Ministry of Finance proposed a special debt policy to buy existing commercial housing for use as affordable housing, the progress of collecting and storing houses in many places accelerated. At the end of October, local housing and construction departments in Hangzhou, Harbin, Yinchuan and other places announced the details of the acquisition one after another, which also boosted the market's sentiment towards real estate stocks in the short term.

Statistics from the China Index Research Institute show that since this year, more than 50 cities have issued announcements to buy existing commercial housing for use as guaranteed housing.

Tianfeng Securities analysts Sun Binbin and Sui Xiuping also analyzed in the November 7 report that in addition to fiscal policy, the market is concerned about the strength of real estate policy. It is estimated that additional special bonds will be issued to support real estate storage. The next policy focus is on whether to increase central bank reloans or PSL, further increase monetization, and push real estate to stop falling and stabilize.

Overall, debt restructuring of housing enterprises continues to advance. Combined policies support the recovery of the sales side of the property market, further boosting investors' expectations and trading sentiment, thus favoring the domestic housing stock market.

Guolian Securities also stated that the current market net ratio valuations for the A-share and Hong Kong real estate sectors are at historically low levels. As the effects of the policy gradually become apparent, market confidence is expected to be boosted, driving sales to stabilize.