Main points
Market Review
Last week (12.20-12.24), the Shanghai Composite Index fell 0.39%, the Shanghai and Shenzhen 300 index fell 0.67%, and the real estate sector rose 1.23%. The A-share real estate companies that focus on Shenzhen Overseas Chinese Town Co.Ltd(000069) (000069. SZ), Poly Real Estate (600048. SH), Tahoe Group Co.Ltd(000732) (000732. SZ) increased significantly, up 8.24%, 8.18% and 5.61% respectively. Sichuan Languang Development Co.Ltd(600466) (600466. SH) decreased significantly, with a decrease of 8.55%. The key H-share real estate companies Greentown China (3900. HK) (up 6.48%), Zhongliang Holdings (2772. HK) (up 4.34%) and Xuhui Holdings Group (0884. HK) (up 2.94%) increased significantly.
Industry dynamics
Commercial housing transactions in 30 large and medium-sized cities were 3.262 million square meters, with a cumulative year-on-year increase of 6.50%. Among them, 943200 square meters of commercial housing were sold in first tier cities, with a cumulative year-on-year increase of 17.56%, 1510600 square meters in second tier cities, with a cumulative year-on-year increase of 15.73%, and 808300 square meters in third tier cities, with a cumulative year-on-year decrease of 13.35%.
Industry news
The central bank and the cbcirc issued the notice on doing a good job in M & a financial services for risk disposal projects of key real estate enterprises, which made it clear that banking financial institutions should carry out M & A loans for real estate projects in a stable and orderly manner in accordance with the principles of legal compliance, controllable risk and commercial sustainability, Focus on supporting high-quality real estate enterprises to merge and acquire high-quality projects of real estate enterprises with difficult liquidity.
Related subject matter
The Matthew effect gradually appeared in the silver age, Three types of real estate stocks in the later stage deserve attention: (1) leading real estate enterprises with low interest rate financing costs and relying on state-owned enterprises to continuously obtain land in the first and second tier cities, such as Greentown China (3900. HK), Longhu group (0960. HK), etc.; (2) real estate enterprises with less impact by the “two concentration” land policy and strong land hook ability, such as Seazen Holdings Co.Ltd(601155) (601155. SH), Baolong real estate (1238. HK), etc; (3) Leading enterprises in the property management industry and enterprises laying out high-quality segments of the property management industry, such as Country Garden Service (6098. HK), Xincheng Yue service (1755. HK), China Resources Vientiane life (1209. HK), Baolong Commerce (9909. HK) and Xingsheng Commerce (6668. HK).
Risk statement
Tightening of real estate regulation policies; Guard against financial systemic risks.
