China - Housing 05 (Jul 16 - Oct 21)

[winston]

Macquarie cited CRIC data that the top 100 Chinese developers recorded a 24% MoM contracted sales rise in September (vs 2% MoM slide in August), indicating a sector-wide recovery.

[winston]

<Research Report>CICC Calls for Proactive CN Property Allocation; Recommends 6 Names Incl. Sunac, CR Land, COLI

CICC noted signs of marginal improvement in sentiment and valuation upgrade in the Chinese property sector, hence finding further housing policy tightening unlikely.

Under the framework of city-specific measures, some cities could witness loosening policy with low segment valuations.

Investors are advised to boost their Chinese property allocation proactively. For H-shares, the broker recommended CHINA RES LAND (01109.HK), CHINA OVERSEAS (00688.HK), LONGFOR GROUP (00960.HK), SUNAC (01918.HK), CIFI HOLD GP (00884.HK) and SHIMAO PROPERTY (00813.HK).

Source: AAStocks Financial News

[behappyalways]

Beijing has built thousands of cheap apartments no one wants
https://www.businesstimes.com.sg/real-e ... -one-wants

[winston]

PRC Fully Annuls Residency Restrictions on Urban Areas with Resident Population Below 3M: Report

The CPC Central Committee and the State Council have recently issued a guideline about promoting reforms in social mobility mechanism of labor force and talents, together with a notice issued to all divisions and local governments for concerted efforts in implementation, cited Xinhua News Agency.

In particular, the guideline explicitly raised the full annulment to residence registration limit on cities with urban resident population below 3 million, and full relaxation of household registration requirement for large cities with urban resident population of 3-5 million.

Source: AAstocks.com

[winston]

Citi: PRC Bolsters Housing Demand by Household Registration Reform; 6 Top Picks Incl. SUNAC

China suggests fully removing residence registration limit on cities with urban resident population below 3 million, and fully relaxing household registration policy for large cities with urban resident population of 3-5 million.

Citigroup believed the policy can boost regional mobility and urbanization.

While the reform is unlikely to generate a substantial housing demand in China, it helps solidify the basic demand of about 1-1.1 billion sq.m. in GFA per year.


SUNAC (01918.HK), SHIMAO PROPERTY (00813.HK), CIFI HOLD GP (00884.HK), LONGFOR GROUP (00960.HK), CHINA RES LAND (01109.HK) and TIMES CHINA (01233.HK) are the sector top picks.

Source: AAstocks.com

[winston]

Mainland property sales to fall 10pc, says HSBC

by Kevin Xu

HSBC (0005) expects property sales in the mainland to drop 10 percent year-on-year in 2020, as several cities have required developers to close sales offices and stop construction amid fears of the fast-spreading SARS-like coronavirus.

HSBC said the closure of sales offices will hamper housing demand and the suspension of construction will impact the developers' cash flow, which increased uncertainties for the profit outlook of mainland developers this year.

Meanwhile, more than ten mainland property developers have pledged to slash rents for tenants in shopping malls, as the novel coronavirus infection spreads. Longfor (0960) said will halve rents, property management fees and promotion fees for all tenants in its shopping malls from January 25 to March 31, which is estimated to benefit more than 4,500 brands.

More than 60 mainland property developers, including China Vanke and Country Garden, have made donations to Wuhan, the epicenter of the viral outbreak, mainland media China Real Estate Business reported.

Previously, Wanda has said it will exempt rents and property management fees for the tenants in all the Wanda Plaza shopping malls across the mainland and expects to receive 3-4 billion yuan (HK$3.36-4.48 billion) fewer in rent.

Source: The Standard

http://www.thestandard.com.hk/section-n ... -says-HSBC

[winston]

China Property – Continues to play catch-up

e Wattended virtual meetings with a number of Chinese developers over the past 1-2 weeks and came away feeling largely positive over the sector outlook.

The key takeaways from our meetings include
i) focus on ramping up on operations and sales with more saleable resources in 2H20;
ii) reiteration of full-year contracted sales targets;
iii) looser credit conditions with most developers aiming to lower their borrowing costs;
iv) stable housing policy direction;
v) some margin pressure given higher land prices over the past few years;
vi) areas of focus and recovery include Yangtze River Delta and Greater Bay Area.

Besides the continued momentum in contracted sales of developers we track, official real estate data from the National Bureau of Statistics also point to a recovery.

Even with the recent share price rebound, Chinese developers are trading at a forward PE of 5.9x, which is 0.8 standard deviation (s.d.) below the 8-year average of 6.8x.

We maintain China Overseas Land & Investment (COLI) (688 HK), Longfor Group (960 HK), KWG (1813 HK) and Country Garden (2007 HK) as our top Buy picks.

We also reiterate our Sell rating on China Evergrande (3333 HK).

Source: OCBC

[behappyalways]

北京郊區1700戶別墅面臨拆遷；業主：當年村邀請買樓，如今變違建 - 20200623 - 有線中國組
https://www.youtube.com/watch?v=c7HPXRFAFMc

[winston]

China developers’ stocks boom along with sales jump in June

Property sales in China will stay strong in the second half of the year, boosted by demand for new flats, falling mortgage rates now at 33-month lows, loosened buying restrictions, and ample supply that had been on hold during the coronavirus pandemic, analysts say.

Source: SCMP

https://www.scmp.com/business/companies ... 9c827&tc=7

[winston]

A strong start for the second half

MTD average weekly GFA sold for 26 cities we track grew 32.5% y-o-y

Dongguan, Hangzhou and Ningbo start to fine-tune local policies to ease ASP hike

Overall southbound shareholding interests edged up to 5.62%

Our top picks: Shimao (813 HK), Yuzhou (1628 HK) and China Aoyuan (3883 HK)

Source: DBS

https://researchwise.dbsvresearch.com/R ... febhkfhgbh