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Affected by news that Beijing requires developers to “actively contribute” to high property prices, Hong Kong stocks fell for two consecutive days and real estate stocks stabilized today
Affected by the news quoted by Reuters that Beijing asked Hong Kong real estate developers to help solve the housing shortage problem, real estate stocks plummeted across the board. The four major real estate developers’ stock prices fell particularly, evaporating a total of nearly HK$90 billion in market value (the same below, equivalent to 9.85 billion) Euro). After individual real estate developers have clarified that they have not received relevant instructions and speeches from the chief executive, the relevant real estate stock prices stabilized today (21st). When the market closed at noon, the stock prices of the four major developers rose by 0.52% to 1.91%. However, it has not yet recovered the ground lost yesterday. The market, which was dragged down by a plunge of 3.3%, continued to fall today. The Hang Seng Index closed at 24,022.12 at noon, down 0.32% from yesterday.
Although Chief Executive Carrie Lam Cheng Yuet-ngor did not want to comment on relevant foreign news reports this morning, she pointed out that, compared with the past when she was in charge of the Development Bureau, today’s real estate developers are very willing to cooperate with the Hong Kong government and participate in the land sharing plan of free land lending. This is just one example. In addition, half of the land for transitional housing is also lent freely by developers. I hope that public-private cooperation can achieve greater results in the future. Before attending the meeting, she said that the central government in Beijing is concerned about Hong Kong’s livelihood issues and hopes that after the election system is revised, the Hong Kong government can effectively improve the effectiveness of governance and resolve housing problems, including public concerns.
Reuters reported last week that Beijing asked Hong Kong real estate developers to “actively contribute” to Hong Kong’s housing supply. Affected by the news, the stock market fell as soon as the market opened on Monday, and real estate stocks fell across the board, especially the four major developers. , And the three major developers with agricultural land that may be targeted by the authorities had the biggest drop yesterday. Among them, Henderson Land Development (Henderson Land)’s share price plunged more than 13%, the biggest drop in the past 13 years; while New World and Hehe Sun Hung Kai Properties fell by more than 10%; as for Cheung Kong Holdings, another major developer, it fell by 9%.
In the evening, SHKP issued a statement saying that it was concerned about the media claiming that “the central government is putting pressure on Hong Kong real estate developers.” It clarified that so far, it has not received relevant news, and emphasized that it will actively cooperate with the Hong Kong government to participate in the land sharing plan and the construction of large-scale transitions. houses.
The Citibank report believes that yesterday’s Hong Kong property stocks were sold wildly because they needed to “actively contribute” to high property prices. This was an overreaction. However, without a specific policy announcement, the view on property stocks would be more conservative. In addition, CITIC Lyon said that under the existing supply mechanism, Hong Kong developers can do only limited. It is estimated that there may be potential changes in residential-related policies, and it is recommended to reduce involvement in related shares.
And at noon today, Cheung Kong, which fell slightly yesterday, temporarily rose 1.91% today; Hengdi, which fell the most yesterday, has risen 0.52% this afternoon; for the rest of Xindi and New World, the share price of this afternoon also has 1.64% and 1.15%. Increase. However, the Hang Seng Index, which was dragged down yesterday, continued to fall today, closing at 24,022.12 at noon, down 0.32% from yesterday.
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