Jinwu Financial News | CITIC Securities said that the real estate policy is based on the need for affordable housing to remove inventory. Compared to 2015, the bank believes that today's real estate policies are all different in terms of goals, methods, and impact on fundamentals. The real estate policy for 2024 is based on the background of major changes in the relationship between real estate supply and demand. Inventory removal is based on real demand for affordable housing, and more emphasis is placed on city-specific policies. Furthermore, the policy focuses on avoiding a surge in supply while restoring the hematopoietic function of enterprises. Since the current policy is driven by actual demand for commercial housing and affordable housing, and is mainly expected to be implemented on a large scale in Tier 1 and 2 cities with a strong demand base, the bank determined that it will take a long time from the end of the fall in housing prices to recovery in investment, and it is very unlikely that housing prices in core cities will rise across the board after they stop falling.
Overall, the bank believes that at this stage, the business focuses more on core cities, has smooth financing channels, strong product capabilities, strong local cultivation and interaction capabilities, and companies that have some high-quality assets to help absorb phased losses from storage are more valuable for investment. The bank is optimistic about investment opportunities in the real estate development sector and recommends focusing on China Resources Land (01109), Yuexiu Real Estate (00123), C&D International Group (01908), and Swire Properties (01972).