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| HSI1 | 23,350.03 | +295.00 | 304.95B |
| HSCEI1 | 7,699.76 | +87.28 | 86.75B |
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2026-07-03 13:28:33 CLSA released a report on China's property sector, stating that the recovery in the Chinese real estate market is beginning to expand from Shanghai to other cities. From a corporate perspective, state-owned enterprise developers have taken the lead in stabilizing sales in 1H26, with some even returning to growth. Benefiting from land acquisitions during the cycle, SOEs are entering this stage with deeper reserves of high-quality projects. The broker believes SOEs with exposure to core cities and clear sellable resources have upside potential, and therefore added CHINA JINMAO (00817.HK) and YUEXIU PROPERTY (00123.HK) to its top picks in China's property sector, alongside CHINA RES LAND (01109.HK). Using a six-factor framework to screen 50 major cities, the broker identified 16 cities with relatively high recovery potential and likely earlier rebounds. Within its coverage universe, the land reserves of SOE developers Yuexiu, Jinmao and China Resources Land in these cities accounted for 79%, 46% and 35% respectively by gross floor area. Data showed that the tracked SOE developers outperformed the market in 1H26, with contracted sales declining only 2.2% YoY, compared with a 16.3% decline for the top 100 developers tracked by CRIC. CLSA gave CHINA RES LAND (01109.HK) a TP of HKD42.4; CHINA JINMAO (00817.HK) a TP of HKD2.43; and YUEXIU PROPERTY (00123.HK) a TP of HKD5.5. All were rated Outperform.(ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |