Daiwa issued a report that the market rumors that the authorities intend to make it easier for internal housing developers to obtain pre-sale funds in escrow accounts in order to solve the serious financial difficulties of the industry.
The bank believes that if the news is true, the relaxation of pre-sale fund management will have a positive impact on the cash flow and solvency of many mainland developers, and the bank believes that the worst of the inner housing credit policy is over. However, the bank also believes that the industry is not completely out of trouble, maintaining a "neutral" position on inner housing, and continues to be optimistic about financially strong internal housing stocks, including 00960.HK, China Resources Land (01109.HK) and Xuhui (00884.HK), all of which are rated as "buy" investments with a target price of 55.9 yuan, 44 yuan and 7.8 yuan respectively. (wl/a)
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