Main points
Market Review
Last week (March 14-march 18, 2022), the Shanghai Composite Index fell 1.77%, the CSI 300 index fell 0.94%, and the real estate sector rose 1.98%. The real estate sector outperformed the Shanghai Composite Index by 3.76 percentage points and the CSI 300 index by 2.93 percentage points. A-share real estate companies focused on Yango Group Co.Ltd(000671) ( Yango Group Co.Ltd(000671) . SZ) and Blu ray development ( Sichuan Languang Development Co.Ltd(600466) . SH) increased significantly, up 13.48% and 12.99% respectively. The A-share real estate companies focused on Zhongnan Construction ( Jiangsu Zhongnan Construction Group Co.Ltd(000961) . SZ) and Beijing Capital Development Co.Ltd(600376) ( Beijing Capital Development Co.Ltd(600376) . SH) increased significantly, up 3.17% and 2.33% respectively. Longguang group (3380. HK), Yuzhou group (1628. HK) and Shimao Group (0813. HK), the H-share real estate companies that are the focus of attention, led the increase, with an increase of 29.12%, 24.71% and 23.64% respectively
News industry
On March 16, the financial stability and Development Commission of the State Council held a special meeting. In terms of real estate enterprises, the meeting pointed out that it is necessary to timely study and put forward strong and effective risk prevention and resolution response plans, and put forward supporting measures for the transformation to a new development model.
The cbcirc held a special meeting to emphasize actively promoting the transformation of the development mode of the real estate industry, encouraging institutions to carry out M & A loans in a stable and orderly manner, focusing on supporting high-quality real estate enterprises to merge and acquire high-quality projects of difficult real estate enterprises, and promoting the virtuous circle and healthy development of the real estate industry. The State Administration of foreign exchange held a special meeting, which required to cooperate with relevant departments to promote the healthy and stable development of the real estate market and platform economy.
From January to February, real estate sales fell sharply year-on-year. From January to February, the sales area of commercial housing was 135 million square meters, a year-on-year decrease of 13.8%, and the sales of commercial housing was 137 million yuan, a year-on-year decrease of 22.11%.
Investment advice
The credit environment still needs to be improved. The Matthew effect of capital is prominent. Enterprises with low financing cost and land acquisition advantage may benefit. The relevant targets: (1) leading real estate enterprises with low financing cost and can continuously obtain land in first and second tier cities, such as green city China (3900. HK), Longhu group (0960. HK), etc; (2) Real estate enterprises that are less affected by the “two concentration” land policy and have diversified land acquisition methods, such as Seazen Holdings Co.Ltd(601155) ( Seazen Holdings Co.Ltd(601155) . SH), Baolong real estate (1238. HK), etc; (3) Leading enterprises in the property management industry and enterprises that layout 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 tips
Tightening of real estate regulation policies; Real estate sales fell short of expectations
