Market Review
Last week (2022.4.06-4.08), the Shanghai Composite Index fell 0.94%, the Shanghai and Shenzhen 300 index fell 1.06%, and the real estate sector rose 1.64%. The real estate sector outperformed the Shanghai Composite Index by 3.52 percentage points and the Shanghai and Shenzhen 300 index by 3.76 percentage points. A-share real estate companies focused on Sichuan Languang Development Co.Ltd(600466) ( Sichuan Languang Development Co.Ltd(600466) . SH), Financial Street Holdings Co.Ltd(000402) ( Financial Street Holdings Co.Ltd(000402) . SZ), China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) ( China Merchants Shekou Industrial Zone Holdings Co.Ltd(001979) . SZ) increased significantly, up 26.01%, 7.48% and 5.10% respectively. The H-share real estate companies that focus on Yuzhou group (1628. HK), Zhengrong real estate (6158. HK) and times China Holdings (1233. HK) led the gains, with increases of 28.85%, 11.11% and 9.87% respectively
Lanzhou introduced a new deal for the property market. Lanzhou municipal government issued several measures for Lanzhou city to implement the strategy of strengthening the provincial council and further optimize the business environment (No. 1), which made new arrangements in reducing the threshold for individuals to buy housing, canceling the “house and loan”, implementing the “loan but not house”, upgrading the provident fund and purchase restriction policies, and supporting the virtuous circle of enterprises.
Taizhou adjusted provident fund loans. If a family with three children purchases the first self occupied house in the city and applies for a housing provident fund loan for the first time, the maximum loan amount can rise by 20%. After the rise, the maximum loan amount can be deposited unilaterally is 360000 yuan, and the maximum loan amount can be deposited by both husband and wife is Shanghai Pudong Development Bank Co.Ltd(600000) yuan.
Investment advice
The credit environment still needs to be improved, market confidence needs to be continuously repaired, the Matthew effect of capital is prominent, and enterprises with low financing cost and land acquisition advantage may benefit. Relevant targets: (1) leading real estate enterprises with low financing cost and can continuously obtain land in first and second tier cities, such as Poly Developments And Holdings Group Co.Ltd(600048) ( Poly Developments And Holdings Group Co.Ltd(600048) . SH), 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.
