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.

Property Management Services Industry - Landscape, Peer Comparison, and Valuation

Zhenro Services (正荣服务) Pre-IPO - Diversifying Away from Zhenro Property Group

Poly Property Development (保利物业发展) Trading - Maximum Claw Back Could Be Triggered

Thematic (Sector/Industry)

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

The policy expression of real estate industry in this year's NPC (the National People’s Congress )work report is generally neutral, showing the industry's medium-long term trend remains unchanged. The central government reiterated that it  will not use real estate market to provide short-term stimulus even China's economy is facing downward pressure. We believe policymakers acknowledged the uncertainty surrounding COVID-19 and the threat of a further outbreak. This can at least partly explain the lack of specific infrastructure investment targets, in a departure from the established norm.
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 That the report did not mention property tax in the work report for the first time since 2018 shows that the government still want to sustain the steady development of real estate markets rather than restrain at this moment . Therefore,we do not expect more tightening policy implementation this year.
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<li>The work report specifically mentioned city cluster development plan and labour market reform, especially hukou reform. We expected that leading city clusters, especially the Yangtze River Delta region and Greater Bay Area would benefit from the policy support.</li>
<li>In this year's NPC report, the urban renovation projects have replaced previous shantytown redevelopment proejcts as a government priority.</li>
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We believe the property management sector is now operating under an increasingly supportive policy environment. We recommend property management sector  stocks <a href="https://www.smartkarma.com/entities/country-garden-services-hold" target="_blank" rel="noopener">Country Garden Services Hold (6098 HK)</a> (High gross profit margin), <a href="https://www.smartkarma.com/entities/a-living-services-co-ltd" target="_blank" rel="noopener">A-Living Services (3319 HK)</a> (Strong value-added services), <a href="https://www.smartkarma.com/entities/greentown-service-group-co-ltd" target="_blank" rel="noopener">Greentown Service Group (2869 HK)</a> (Leader of value-added services) as the industry should benefit from government support policy on urban renovation projects and employment-first strategy mentioned in this year's  NPC meeting.

The policy expression of real estate industry in this year's NPC (the National People’s Congress )work report is generally neutral, showing the industry's medium-long term trend remains unchanged. The central government reiterated that it  will not use real estate market to provide short-term stimulus even China's economy is facing downward pressure. We believe policymakers acknowledged the uncertainty surrounding COVID-19 and the threat of a further outbreak. This can at least partly explain the lack of specific infrastructure investment targets, in a departure from the established norm.


 That the report did not mention property tax in the work report for the first time since 2018 shows that the government still want to sustain the steady development of real estate markets rather than restrain at this moment . Therefore,we do not expect more tightening policy implementation this year.

The work report specifically mentioned city cluster development plan and labour market reform, especially hukou reform. We expected that leading city clusters, especially the Yangtze River Delta region and Greater Bay Area would benefit from the policy support.
In this year's NPC report, the urban renovation projects have replaced previous shantytown redevelopment proejcts as a government priority.

We believe the property management sector is now operating under an increasingly supportive policy environment. We recommend property management sector  stocks Country Garden Services Hold (6098 HK) (High gross profit margin), A-Living Services (3319 HK) (Strong value-added services), Greentown Service Group (2869 HK) (Leader of value-added services) as the industry should benefit from government support policy on urban renovation projects and employment-first strategy mentioned in this year's  NPC meeting. 

The NPC Report:Stimulus Restraint, Policy Benefiting the Property Services Industry