After a holiday break, real estate developers traded higher in Hong Kong, catching up with Chinese stocks in response to a notable optimistic remark and statistics showing rise in first-quarter real estate sales.
Tuesday saw a 6.1% increase in the Hang Seng Mainland Properties Index, putting it on pace for its highest one-day gain since November. Longfor Group Holdings Ltd. increased 5.8%, while Country Garden Holdings Co. and Seazen Group Ltd. both had increases of 12%.
The increases came after China Real Estate Information Corp. revealed last week that sales value at the top 100 real estate developers in the nation increased 3.1% in the first quarter from a year earlier. Li Bei, a prominent hedge fund manager in Shanghai, disclosed on Friday that she had taken a bullish position in the Chinese real estate market, citing greater contracted sales in recent months, a decrease in supply, and discounted prices.
Due to a holiday, Hong Kong stocks were trading for the first time since Thursday. Many real estate stocks rose on Friday in China, where markets were open, with the Wind Property Index climbing 3.5%.
The market value of “many” developers who haven’t gone into default on their debt, according to Ms. Li of the hedge fund Shanghai Banxia Investment Management Center, could reach historic highs.
“Home prices will stabilize and pick up as the supply of real estate falls,” Ms. Li said.
The majority of the real estate stocks in her portfolio, according to her, are listed in Hong Kong, where they are valued “much cheaper” than their onshore counterparts. According to her, property stocks are currently trading at a considerable discount to the overall market.
The “moderately positive momentum” in the first quarter’s sales should carry over into the second, according to a note published by Fitch Ratings last week. This is due to “the continued economic recovery, supportive policy measures, and a low base in the prior-year period,” it was stated.
- Published By Team Hongkong Journalist