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| HSI1 | 22,881.02 | 0.00 | -- |
| HSCEI1 | 7,558.30 | 0.00 | -- |
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2026-06-29 13:23:00 Although the Chines property sector has recently seen share price pullbacks in wake of a 10% MoM decline in weekly secondary home transactions and tightening liquidity in the equity market toward period-end, Citi is increasingly optimistic about the sector’s outlook. This is mainly supported by resilient market transaction volumes, a low base effect in July 2025, expectations for a more concentrated launch of new projects starting from September 2026, and anticipated supportive policy signals from the July Politburo meeting. Although earnings of property developers were expected to be weak in 1H26, the broker reordered its sector top picks for July and August to, in sequence, CHINA RES LAND (01109.HK), C&D INTL GROUP (01908.HK), BEKE-W (02423.HK), CHINA JINMAO (00817.HK) and CHINA OVERSEAS (00688.HK). It turned more positive on C&D INTL GROUP due to product upgrades and accelerated land acquisitions. Citi forecast sector earnings in 1H26 to shrink 35-40% YoY, impacted by a high base in the same period last year and gross margin pressure from inventory sales. It also predicted that LONGFOR GROUP (00960.HK) and POLY PROPERTY (00119.HK) will log losses in 1H26. However, CHINA RES LAND’s recurring income added 8% YoY in 5M26. In addition, BEKE-W delivered strong GTV in 2Q26, with its 2Q26 earnings expected to hike 26% YoY. On ratings and target prices, Citi maintained Buy ratings on multiple core Hong Kong stocks. The TP for CHINA RES LAND was HKD43, for C&D INTL GROUP at HKD18.8, for BEKE-W at HKD73.6, for CHINA JINMAO at HKD1.9, and for CHINA OVERSEAS at HKD18.2. CH OVS G OCEANS (00081.HK), GREENTOWN CHINA (03900.HK), YUEXIU PROPERTY (00123.HK) and POLY PROPERTY were also maintained at Buy, with TPs of HKD2.68, HKD11.8, HKD5 and HKD2.8 respectively. LONGFOR GROUP was likewise maintained at Buy, with a TP of HKD11.1. ~ AASTOCKS Financial News Website: www.aastocks.com | |