Property management stocks strengthened collectively, with Country Garden services rising more than 6%, leading the way. Institutions pointed out that commodity buybacks boosted market confidence

Zhitong Finance ·  06/30/2023 10:09

The Zhitong Finance App learned that property management stocks were generally rising in early trading. As of press release,$CG SERVICES (06098.HK)$An increase of more than 6%,$SUNAC SERVICES (01516.HK)$,$KWG LIVING (03913.HK)$An increase of 4%,$A-LIVING (03319.HK)$More than 3% increase.

According to the news, Shengang Securities pointed out that the buybacks of property companies and the increase in holdings by executives not only send a signal to the market that property valuations are still low, but are also conducive to boosting market confidence. The bank believes that the basic property business of material enterprises still has a stable cash flow, and that community value-added services are expected to improve in '23 along with the steady recovery of the economy. There is still room for superposition policies, and leading property companies are expected to be able to recover their valuations.

CITIC Securities pointed out that the real estate policy discussed by the market focused too much on the development and construction of new homes. In fact, real estate policies cover a wide range of topics. Among them, the clearest long-term support policy is funding and institutional support for the operation and maintenance of existing homes, including housing pension policies, that is, innovations in the collection and use of housing maintenance funds. In the long run, relevant policies may greatly relieve the pressure on the property management industry's existing service costs and promote the creation of a new profit model for asset investment in pioneering China. In the medium term, the property management sector is the first choice for the entire real estate industry chain.


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