Equity Research in HK and Mainland China

Li Tang

Highly experienced sell-side analyst with more than ten years of experience in the field of China’s in-depth policy-driven macro research in China (Beijing) .
Covering in equity research in HK and Mainland market mainly real estate, construction,steel sector.
The Ideas generation based on an analysis of China’s future direction and policy decisions fundamental analysis on sector impact, market drivers, timing and scale, combined with quantitative analysis.

China Property Weekly: Real Estate Investment Rebounds,Mortgage Lending Rate Continues to Decline.

Thematic (Sector/Industry)

China Real estate / Thematic (Sector/Industry)

M2 growth rose to 11.1% YoY in April from 10.1% YoY in March further monetary easing steps are expected as the central bank has pledged to keep liquidity ample and lower borrowing costs. Long-term household new loans were 439bn yuan in April , within the usual 400bn-500bn range over the last two years indicates the restart of the housing market. The previous experience shows that whenever liquidity conditions relax in China, funds flow into the property market, regardless of policy intentions. Looking forward to the H2, the active fiscal policy, the resumption of production and expansion of domestic demand will become the main theme for China.
<ul class="" type="disc">
<li>Property transaction volumes still down on YoY basis in last week but shows signs of recovered as cities fine tune local property policies.</li>
<li><a href="https://www.smartkarma.com/entities/yuzhou-properties-co" target="_blank" rel="noopener">Yuzhou Properties Co (1628 HK)</a> contracted sales reached 9.63bn yuan representing an increase of 87%  in April, respectively. The strong sales is expected continue in May</li>
<li><a href="https://www.smartkarma.com/entities/seazen" target="_blank" rel="noopener">Seazen (Formerly Future Land) (1030 HK)</a>, property sales fell 15.67% YoY in April. The company is likely to miss 2020 sales target.</li>
<li>The market expected that the ban on using special bond funds for finance shantytown redevelopment projects would be lifted.</li>
</ul>

M2 growth rose to 11.1% YoY in April from 10.1% YoY in March further monetary easing steps are expected as the central bank has pledged to keep liquidity ample and lower borrowing costs. Long-term household new loans were 439bn yuan in April , within the usual 400bn-500bn range over the last two years indicates the restart of the housing market. The previous experience shows that whenever liquidity conditions relax in China, funds flow into the property market, regardless of policy intentions. Looking forward to the H2, the active fiscal policy, the resumption of production and expansion of domestic demand will become the main theme for China.

Property transaction volumes still down on YoY basis in last week but shows signs of recovered as cities fine tune local property policies.
Yuzhou Properties Co (1628 HK) contracted sales reached 9.63bn yuan representing an increase of 87%  in April, respectively. The strong sales is expected continue in May
Seazen (Formerly Future Land) (1030 HK), property sales fell 15.67% YoY in April. The company is likely to miss 2020 sales target.
The market expected that the ban on using special bond funds for finance shantytown redevelopment projects would be lifted.


Poly Real Estate Group Co., Ltd (600048 CH)

China Merchants Shekou Industr (001979 CH)

China Property Weekly:M2 Growth Rose,Yuzhou Properties Sales Soared in April.