Changes in Hong Kong stocks | China Construction International (03311) rose nearly 3%, Citigroup said the company benefited from real estate reform plans to increase capital expenditure and expand MiC production capacity

The Zhitong Finance App learned that China Construction International (03311) rose nearly 3%. As of press release, it had risen 1.77% to HK$8.625, with a turnover of HK$57.907 million.

According to the news, Citi released a research report stating that China's property pre-sale system reform and Hong Kong, China's two favorable policies to increase the penetration rate of modular public housing (MiC) and set a target of 70,000 public housing units over the next five years are beneficial to the company. China Construction International plans to increase capital expenditure and expand MiC production capacity in Beijing, Shanghai, and Guangzhou to meet demand in mainland China and Hong Kong, China, which may be higher than expected.

Citi said that according to the notice at the end of August, China plans to shift the real estate market from a pre-sale model to existing home sales, which will encourage developers to use more MiC and shorten the construction period from the traditional two to three years to about nine months, which will benefit the company to take advantage of its leading position in MiC in mainland China and Hong Kong. According to the first “Five-Year Plan” plan in Hong Kong, China, the Beidu can immediately start construction from 2030 to 2031 to increase the number of land to 900 hectares, supporting more than 70,000 public housing units; the company has already received more than HK$100 billion worth of orders from Beidu. The five-year plan also requires that at least half of public housing from 2026/27 to 2030/31 be built using MiC.