The Zhitong Finance App learned that domestic housing stocks continued to decline. As of press release, R&F Real Estate (02777) fell 6.72% to HK$0.125; Sunac China (01918) fell 4.62% to HK$0.62; and Xincheng Development (01030) fell 3.09% to HK$1.41.
According to the news, there are recent market rumors that a national interest rate discount policy will be implemented, and that the Ministry of Finance and the local authorities will collectively cut interest rates of up to 100 basis points, driving interest rates on first home loans down to 2%. Another version says that the total amount is 100 billion yuan and interest rates will be discounted by 20 basis points. Many real estate industry analysts at brokerage firms are cautious about the above rumours and believe that it is unlikely that a nationwide interest rate discount policy will be implemented. Some analysts said, “At the national level, extending loan terms is actually about the same as interest rate discount/interest rate cuts reduced”.
Furthermore, at the end of August, various ministries and departments simultaneously introduced a package of real estate and supporting financing policies for the property market. Guosheng Securities pointed out that sales of existing homes are bad for almost all developers in the short term (once again, the most direct impact on “project cash flow” and “disposable cash flow”), but there are differences in the carrying capacity of different companies: large enterprises with high leverage, more land acquisition, and more projects under construction, especially private enterprises, will have a greater marginal impact; small local housing enterprises that originally had low leverage, own capital, and small-cap development are relatively less affected; the possibility that companies that have taken risks will survive is now much smaller.