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

Thematic (Sector/Industry)

China Real estate management and development / Thematic (Sector/Industry)

We are seeing clues of the potential formation of a new package of structural reforms involving <a href="https://www.smartkarma.com/insights/china-real-estate-market-outlook-rural-land-reform" target="_blank" rel="noopener">rural land reform</a>, hukou reform, key region city cluster policy/new FTZs, and related financing policy (e.g. <a href="https://www.smartkarma.com/insights/which-sectors-should-benefit-from-the-launch-of-china-reits" target="_blank" rel="noopener">infrastructure REITs</a>) in this year.We expected those policies might change China real estate industry prospect soon.
As near the end of the April-May traditional peak season, many cities are issuing local property market support measures. Even though these are of moderate or mild strength, for example, eased access to low-interest home accumulation fund loans, they will bolster market sentiment. Meanwhile, home sales continue to improve in last week,this may be due to many large developers offering deeper discounts in the past few months and advancing presales in a bid to recoup funds, as well as stricter price controls in Tier 1 cities. 
China's central bank keeps its benchmark lending rate steady on Wednesday and we expect monetary policy support to be more targeted such as targeted RRR-cuts.  We still expect deteriorating US-China trade relations, and the impact of COVID-19 will trigger more liquidity easing and indirectly provided support for China real estate industry.
<ul>
<li>China property investment rebounds in April likely continued see positive property investment data in May</li>
</ul>
<ul type="disc">
<li>50 out of the 70 cities surveyed by the NBS reported rising home prices on a mom basis the highest number since September 2019</li>
<li>Rong 360 data shows that national mortgage lending rate continues to decline in May </li>
<li>30 cities home sales data shows gradual improvement in the first 17days of May </li>
<li>More province and cities loosen hukou restriction to support the property market in May</li>
</ul>

We are seeing clues of the potential formation of a new package of structural reforms involving rural land reform, hukou reform, key region city cluster policy/new FTZs, and related financing policy (e.g. infrastructure REITs) in this year.We expected those policies might change China real estate industry prospect soon.
As near the end of the April-May traditional peak season, many cities are issuing local property market support measures. Even though these are of moderate or mild strength, for example, eased access to low-interest home accumulation fund loans, they will bolster market sentiment. Meanwhile, home sales continue to improve in last week,this may be due to many large developers offering deeper discounts in the past few months and advancing presales in a bid to recoup funds, as well as stricter price controls in Tier 1 cities. 
China's central bank keeps its benchmark lending rate steady on Wednesday and we expect monetary policy support to be more targeted such as targeted RRR-cuts.  We still expect deteriorating US-China trade relations, and the impact of COVID-19 will trigger more liquidity easing and indirectly provided support for China real estate industry.

China property investment rebounds in April likely continued see positive property investment data in May


50 out of the 70 cities surveyed by the NBS reported rising home prices on a mom basis the highest number since September 2019
Rong 360 data shows that national mortgage lending rate continues to decline in May 
30 cities home sales data shows gradual improvement in the first 17days of May 
More province and cities loosen hukou restriction to support the property market in May


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

China Merchants Shekou Industr (001979 CH)

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