China - Housing 06 (Nov 21 - Dec 26)

[behappyalways]

A strange trick to stimulate the housing market!
Chinese builders give away a gift package of "Buy a house and get a flight".
Private jets are placed at the door!
The builder tells the truth: No one chooses to fly when buying a house.

奇招催房市買氣! 中國建商大禮包"買房送飛機" 私人飛機擺門口! 建商吐真話:買房沒人選飛機│記者 │【國際焦點】20240816│三立新聞台

https://m.youtube.com/watch?v=QIIeBgWAm0U

[behappyalways]

Is it difficult to buy a house in Hong Kong?
China promotes "cross-border house viewing tours with free meals and free meals".
The Shenzhen-Zhongshan corridor is opened and Hong Kong people go to Zhuhai and Zhongshan to buy "cheap houses"

香港買房難? 中國推包吃包送"跨境0元看房團" 深中通道開通 港人赴珠海.中山購買"便宜房"｜記者 林芷綺 徐國衡｜【國際焦點】20240820｜三立新聞台

https://m.youtube.com/watch?v=fbaoqbbvqQE

[winston]

Mainland property slump deepens

The value of new-home sales from the 100 biggest real estate companies fell about 26.8 percent from a year earlier to 251 billion yuan (HK$275.9 billion), faster than the 19.7 percent decline in July.

At least 10 city governments have loosened or scrapped new-home price guidance, to let market demand play a bigger role, a move that is expected to drive more real estate companies to cut prices.

The crisis has weighed on everything from the job market to consumption and household wealth over the past two years.

China has been considering a new funding option for local governments to buy unsold homes to prop up the market. The latest proposal would allow local governments fund their home purchases via so-called special bonds.

The country had 382 million square meters of unsold new homes as of July, equivalent to about the size of Detroit.

Source: Bloomberg

https://www.thestandard.com.hk/section- ... mp-deepens

[behappyalways]

China's housing market is in recession and it's hard to save it...
Builders are asking for a sale and the government is calling "zero down payment" a scam!
Beijing’s implementation rate of 1.34 trillion yuan bailout is only 8%

中國房市委靡難救...建商求賣又見"零首付"政府跳腳喊有詐！北京1.34兆紓困執行率僅8%｜非凡財經新聞｜20240824

https://m.youtube.com/watch?v=XFJyjlS6DpY

[winston]

<CN Home>JPM Expects CN Home Prices to Not Stabilise Until 2025; Refinancing Existing Mortgages Will Not Help Stimulate Demand

Foreign media reported that Zhu Haibin, Chief China economist at JPMorgan, said China's property market will continue to be weak because the effects of government stimulus and support measures are not satisfactory.

He believed the home market crash is not yet over and projected property prices in China to not stabilise until next year at the earliest.

It was previously rumoured that China was considering to allow refinancing of existing housing loans, which totalled up to RMB 38T, in order to reduce the debt burden of residents.

However, analysts were sceptical that such measures would be effective in stimulating demand for purchases.

Zhu commented that such refinancing will do little to stimulate demand for housing, as the main beneficiaries will be existing homeowners.

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

Ouch! China's property stocks are back to 2008 lows.
https://x.com/AyeshaTariq/status/1832017614970708325

[winston]

<Research>Daiwa: PBOC Ramps Up Support for Property Sector, But Impact May Be Mild

The People's Bank of China (PBOC) announced a series of monetary easing measures yesterday to support the economy, Daiwa released a research report saying.

However, Daiwa believed that the reduction in interest rates for existing mortgages will not have a significant impact on new home sales. Instead, this may simply slow down the pace of new home mortgage rate cuts.

Related News - CLSA: CN 2nd-home Down Payment Cut, Relending Program Optimization Positive Surprises; Top Pick CR Land

In addition, the decline in new home sales in the first 3 weeks of September's Golden Week underscores the need for more aggressive policy intervention by the government.

While the raft of measures is unlikely to have a material impact, Daiwa believed that the policy, coupled with the PBOC's liquidity support for the stock market, may drive a near-term recovery in developers' valuations.

Therefore, the policy support theme presents a strategic trading opportunity in the short term. In the long term, Daiwa's top picks are CHINA RES LAND (01109.HK) and CHINA OVERSEAS (00688.HK) .

Related NewsM Stanley: PBOC's Easing Policy Exceeds Expectations, Indicating Shift in Tackling Deflation

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[winston]

<Research>CICC: CN Property Policies Stronger Than Expected, Sector Entering Observation Period

CICC remarked in its recent report that the State Council Information Office's policies on financial support for high-quality economic development have exceeded market expectations in terms of both scope and intensity.

The five property-related policies proposed this time aim to address the industry's prominent issues of weak demand, credit risk, and bottlenecks in land reserves with targeted measures.

The broker pointed out that the current property industry fundamentals are still in a downward trend in both price and volume.

The newly introduced package of financial support policies may bring about a phase of marginal improvement but whether it can lead to a fundamental turning point remains to be seen.

Related NewsDaiwa: PBOC Ramps Up Support for Property Sector, But Impact May Be Mild

In addition, as the effectiveness of the policies and whether there will be further fiscal efforts to fuel economic growth require further observation, China's property sector has entered a policy effect observation period.

Among developer stocks, CICC recommended MERCHANTS SHEKOU (001979.SZ) , CHINA RES LAND (01109.HK) and CHINA OVERSEAS (00688.HK).

As for property managers, the broker recommended companies with better growth and dividend yield composite returns, such as CHINA RES MIXC (01209.HK), GREENTOWN SER (02869.HK) and POLY PPT SER (06049.HK).

Source: AAStocks Financial News

http://www.aastocks.com/en/stocks/news/ ... -news/AAFN

[behappyalways]

China developers offer deals betting home prices will hit bottom
https://www.theedgesingapore.com/news/c ... hit-bottom

[winston]

China homebuyers cautious as curbs eased

Homebuyers in China took a wait-and-see attitude after the four first-tier cities Beijing, Shanghai, Shenzhen, and Guangzhou eased purchase curbs ahead of China's National Day holiday.

Source: AP

https://www.thestandard.com.hk/section- ... urbs-eased