Changes in Hong Kong stocks | Domestic housing stocks fell across the board, new housing sales volume declined in September, and the cash flow of housing enterprises under the existing housing sales system will be under pressure

The Zhitong Finance App learned that domestic housing stocks fell across the board. As of press release, R&F Real Estate (02777) fell 7.05% to HK$0.211; China Overseas Hongyang Group (00081) fell 6.75% to HK$2.765; Sunac China (01918) fell 4.63% to HK$0.515; and C&D International Group (01908) fell 3.65% to HK$12.67.

According to the news, data from the National Bureau of Statistics shows that the sales area of newly built commercial housing fell 20.7% year on year in September, up 5.9 pct from August; the cumulative sales area decreased 13.2% year on year in January-September. Huayuan Securities said that the September data showed that the year-on-year decline in the sales area of new homes increased, but second-hand housing transactions bucked the trend; the year-on-year decline in housing prices narrowed, and some core cities corrected year-on-year and continued to grow positively month-on-month; the decline in development investment increased, and construction was still weak.

Huatai Securities pointed out that under the current housing sales system, housing companies' upfront capital consumption has increased, and short-term cash flow is still under pressure; however, declining financing costs, expansion of securitization channels such as REITs, and policy hedging such as land payments and tax installments are expected to mitigate the impact of system changes. Housing enterprises with healthy financial health and smooth financing channels will gain a larger share.