The Zhitong Finance App learned that domestic housing stocks picked up in early trading. As of press release, Longhu Group (00960) rose 7.16% to HK$5.09; Vanke Enterprise (02202) rose 4.41% to HK$2.485; China Resources Land (01109) rose 3.93% to HK$31.24; and Sunac China (01918) rose 3.60% to HK$0.575.
According to the news, on October 15, Shenzhen and Hangzhou introduced rules relating to the reform of the commercial housing sales system. CITIC Construction Investment pointed out that since the end of September, the seven cities of Beijing, Shanghai, Guangzhou, Wuhan, Tianjin, Shenzhen, and Hangzhou have successively introduced 828 new real estate policy rules. All seven cities are focusing on implementing existing housing sales, raising the pre-sale threshold, and promoting the smooth implementation of the new policy through supporting buffer mechanisms. Under the influence of the Seven Cities model, the speed of introduction of rules in other cities is expected to accelerate, and the industry landscape will accelerate differentiation.
J.P. Morgan Chase released a research report saying that during the National Day Golden Week experts were more cautious about the outlook for domestic housing than expected. The bank expects that after implementing the national policy, high-frequency sales data may weaken in the next few weeks, and the sector may outperform the market in the short term. However, if profit margins expand and housing prices stabilize from Shanghai to a wider region, the market may rebound in the first half of 2027.