Jinwu Financial News | Domestic housing stocks were generally pressured. Jinhui Holdings (09993) fell 7.69%, C&D International Group (01908) fell 4.36%, Agile Group (03383) fell 4%, Shimao Group (00813) fell 3.7%, Country Garden (02007) fell 3.28%, and Longguang Group (03380) fell 3.23%.
Motong released a report stating that domestic housing stocks rose 8% on March 12, compared to the Hang Seng Index, that the central government rescued Vanke (02202). Although the central government may request financial institutions to support Vanke, the bank expressed doubts about some details, believing that the central government's help was based on “doing our best” rather than “doing our best.”
Furthermore, the bank believes that the central government's efforts to avoid default debts with some leading developers are insufficient to dispel the bank's biggest concern about weak domestic housing sales. The month-on-month improvement in domestic housing sales in March may be due to seasonal factors. However, until the bank sees a recovery in domestic housing sales and stabilization of housing prices, it will maintain a cautious view on domestic housing stocks and recommend selling domestic housing private enterprises.