Market Review
Last week (1.10-1.16), the Shanghai Composite Index fell 1.63%, the Shanghai and Shenzhen 300 index fell 1.98%, and the real estate sector fell 3.5%. The real estate sector lost 1.87 percentage points to the Shanghai Composite Index and 1.52 percentage points to the Shanghai and Shenzhen 300 index.
Industry dynamics
On January 14, the Supreme People's court held a press conference and issued the guiding opinions on giving full play to the role of judicial functions to help the development of small, medium and micro enterprises. The opinions proposed to support and guarantee relevant departments to prevent and deal with the risk of overdue delivery of real estate projects, ensure that the wages of migrant workers are paid in place, and ensure the legitimate rights and interests of commercial housing buyers.
The head of the Ministry of housing and urban rural development said at a press conference on January 11 that policy support for finance, land and public services should be strengthened to expand the supply of affordable rental housing. During the 14th Five Year Plan period, 40 key cities initially planned to add 6.5 million units (rooms), which is expected to help 13 million new citizens and young people alleviate their housing difficulties. At the same time, we will continue to ensure public rental housing, develop housing with common property rights according to local conditions, and steadily promote the transformation of shantytowns. The accelerated development of affordable rental housing and the accelerated implementation of policies will bring new development opportunities to the real estate industry. As a major participant, real estate enterprises will take advantage of their own advantages or open a new situation for business development.
Industry news
On January 14, the Shanghai municipal government held a press conference. Vice mayor Peng CHENLEI introduced the relevant information of the development planning outline of Chongming world-class ecological island (2021-2035). The outline of the plan proposes to build Chongming world-class ecological island into a "bridgehead" of green ecology, a "leading area" of green production and a "demonstration land" of green life by 2035, and become a national ecological civilization card leading the country and affecting the world.
On January 12, Shenzhen Science and technology innovation Commission issued the "14th five year plan" for scientific and technological innovation in Shenzhen, proposing that by 2025, Shenzhen will be built into a modern international innovation city, become an important engine of the international science and technology innovation center in Guangdong, Hong Kong and Macao, and accelerate the construction of a scientific and technological and industrial innovation highland with global influence. The plan also proposes to build 11 innovation cluster areas, including Shenzhen Bay, Pingshan Park, Bao'an Park, banxuegang Guanlan and Jiulongshan Fumin, in Shenzhen high tech Zone. The plan takes the construction of "four platforms" and strengthening "four supports" as its main tasks.
Suggested concern
The meeting of the Political Bureau of the CPC Central Committee stressed the need to promote the construction of affordable housing, support the commercial housing market to better meet the reasonable housing needs of buyers, and promote the healthy development and virtuous cycle of the real estate industry. 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 first and second tier cities, such as Vanke and Poly Real Estate; (2) Real estate enterprises that are less affected by the land policy and have strong land application ability, such as Seazen Holdings Co.Ltd(601155) , Baolong real estate, etc. (3) Leading real estate enterprises that have arranged long-term rental apartments, such as 5I5J Holding Group Co.Ltd(000560) , Longhu group, etc.
Risk tips
Tip 1: real estate regulation policy tightened
Tip 2: prevent financial systemic risks
