The Zhitong Finance App learned that some domestic housing stocks rose in the afternoon. As of press release, Longhu Group (00960) rose 5.2% to HK$6.78; Country Garden (02007) rose 4.05% to HK$0.18; Vanke Enterprise (02202) rose 3.38% to HK$2.445; and Xincheng Development (01030) rose 2.57% to HK$1.395.

According to the news, on August 20, six departments including the Shanghai Housing, Urban-Rural Development Administration, and the Shanghai Provident Fund Management Center jointly issued the “Shanghai Eight Rules” for the property market, which mainly include 5 areas and 8 policies and measures, including optimizing the withdrawal of housing provident funds, optimizing personal housing credit, implementing “trade-in” housing purchase subsidies, implementing housing ticket placement, and promoting the acquisition of second-hand housing.

Guoxin Securities released a research report saying that real estate sales volume and price improved marginally in July, and the trend of improving fundamentals continued to accumulate upward momentum in real estate stocks. Considering that the current discount margin for real estate stocks is sufficiently or even excessively pessimistic about future housing price declines, we reaffirm that real estate stocks have value space and stock prices are at the bottom of the medium term. It is recommended to choose targets that are active in land acquisition, reasonable layout, and sufficient discount.

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