Changes in Hong Kong stocks | Most domestic housing stocks fell, and the sales decline of the top 100 housing companies remained flat in the previous 9 months, Citi expects housing companies' profits to be at risk

The Zhitong Finance App learned that most domestic housing stocks were lower. As of press release, Agile Group (03383) fell 6.87% to HK$0.122; Sunac China (01918) fell 3.82% to HK$0.63; Greentown China (03900) fell 3.62% to HK$6.265; Rongxin China (03301) fell 3.26% to HK$0.089.

According to the news, according to the China Research Institute, in January-September of this year, 100 real estate companies had total sales of 2259.72 billion yuan, the same year-on-year decline as in January-August. The property market is still in an off-season situation. Only core cities still have market support, driven by the entry of high-quality projects into the market, and the decline in sales performance of key housing enterprises has increased slightly. Citi believes that 2027 will be a key year for the recovery of property prices in core cities, supported by reduced new supply and inventory; however, it remains cautious about the fourth quarter of 2026, as developers' sales and profits are at risk after the existing housing sales policy, including the contraction of the new housing market and the pressure on profit and return on equity due to the lengthening cash conversion cycle.

Recently, policy “combo punches” have been implemented intensively. The new commercial housing loan interest rate discount policy for commercial housing loans began and came into effect on October 1. The core is aimed at the initial demand for the first home, with a limited floor area of no more than 120 square meters and a total price of no more than 1.5 million yuan. The interest rate discount margin is 1 percentage point, up to 5 years. Furthermore, around the 11th, the four cities of Beijing, Shanghai, Guangzhou, and Wuhan successively implemented implementation rules to improve the commercial housing sales system, and promoted the existing housing sales system at the core.