Jinwu Financial News | According to Everbright Securities Research, the current supply and demand relationship in China's real estate market has undergone major changes. In the beginning of 2024, supervisory authorities will continue to actively optimize real estate policies and accelerate the construction of a new model for real estate development. On the supply side, the regulation suggests that the financial industry supports real estate financing through comprehensive methods such as credit, bonds, and equity, and emphasizes that housing enterprises with different forms of ownership are “treated equally”, establish a coordination mechanism for urban real estate financing, and improve the mortgage rate and use of operating property loans. The financing cash flow of high-quality housing enterprises is expected to increase; from the demand side, the Ministry of Housing and Construction proposes to fully grant autonomy to urban real estate regulation. Local governments increase their support for demand-side housing purchases, including optimizing “housing approval and loan approval”, and lowering down payment ratios and downpayment ratios mortgage interest rates, further optimizing the scope of purchase restrictions and Ordinary housing standards provide further support for families with many children and talents to buy homes, etc.; it is expected that with the further improvement of local governments' autonomy in property market regulation, the urban and regional differentiation of the property market may further intensify in 2024.
The bank's investment proposal focuses on three main lines: 1) It is optimistic about stable leading real estate enterprises that have comprehensive development capabilities in the area and are expected to increase their market share. It is recommended to focus on China Merchants Shekou, Poly Development, China Jinmao (00817), China Overseas Development (00688), Yuexiu Real Estate (00123), Huafa Co., Ltd., China Overseas Hongyang Group (00081), Vanke A/Vanke Enterprise (02202), and Binjiang Group. 2) Consumer commercial public offering REITs are being actively promoted. For real estate enterprises that are optimistic about the multiple circuits of the First Release Bureau, have abundant stock assets and resources, and have core competitiveness on the commercial real estate circuit, it is recommended to focus on China Resources Land (01109), Longhu Group (00960), and Xincheng Holdings. 3) I am optimistic that China's industrial parks will enter a period of stock reform+innovation and development, and gradually move towards specialized operation and development. Public REITs are conducive to the revaluation of industrial park assets. It is recommended to focus on Shanghai Lingang.