Changes in Hong Kong stocks | Domestic housing stocks fell in the morning, and the decline in real estate sales increased in October, Citi quoted experts as saying that Chinese property prices have not yet bottomed out

The Zhitong Finance App learned that the decline in domestic housing stocks increased in the morning. As of press release, Sunac China (01918) fell 7.32% to HK$0.38; China Overseas Development (00688) fell 3.07% to HK$12.31; Rongxin China (03301) fell 2.67% to HK$0.073; and C&D International Group (01908) fell 1.80% to HK$13.1.

Yamato previously released a research report saying that sales contraction in the Chinese real estate market increased in October, with contract sales of the top 100 developers falling 22% and 17% year on year respectively, further worsening from the 8% and 14% year-on-year declines in September, but remained roughly flat from month to month. The bank believes that the latest data does not fully reflect the impact of the pre-sale reform.

Citi, on the other hand, said that property experts in the Central Plains expect that given the low return on rent, the high rate of property prices compared to residents' income, and the continued decline in sales of new homes, property prices in China have not yet bottomed out. The bank continued that the mortgage interest subsidy policy introduced on September 29 has limited impact on the property market; the existing housing sales policy introduced on August 28 is putting pressure on developers. Although detailed policies and implementation in each province are better than expected and have been relaxed, the trend is still unfavorable to developers. The cash cycle will be extended, and the internal return on the project will also decline.