Jinwu Financial News | CITIC Securities said that promoting market recovery is the best way to absorb existing housing stock. The prerequisite for successful housing delivery is stabilizing housing prices. The key to stabilizing housing prices is to absorb the stock of housing stock. The most effective way to absorb the stock of housing stock is to promote the recovery of market transactions and encourage the release of reasonable demand for home purchases. The policy is expected to adjust down payment requirements and completely marketize mortgage interest rates, which will effectively boost demand. By summing up local experience, issuing reloans to increase the practice of purchasing existing commercial housing as affordable housing. The bank believes that this will further boost confidence in the commercial housing market in core cities. Reclaiming existing land is conducive to further optimizing inventory, while classification and disposal and judicial support are conducive to avoiding moral risks and increasing public opinion's support for policies.
All in all, the bank believes that the new policy has few side effects of loosening demand restrictions, and housing prices in core cities are expected to stabilize in the middle of the year. The bank is optimistic about development companies and service leaders in the context of stabilizing housing prices. It is recommended to focus on real estate company China Resources Land (01109), real estate transaction service platform Shell (02423), property service companies China Resources Vientiane Life (01209), and Wanwuyun (02602).