Chinese Property Stocks Extend Recent Rebound as Tier-1 City Home Prices Rise for Fourth Consecutive Month, Improving Market Sentiment

Stock News07-15

Chinese property stocks continued their recent upward trajectory.

At the time of writing, RonshineChina (03301) surged 8.16% to HK$0.053, Yuexiu Property (00123) gained 4.56% to HK$3.67, Seazen (01030) advanced 4.35% to HK$1.44, and China Vanke (02202) rose 2.56% to HK$2.40.

This positive movement is supported by recent official commentary. Sheng Laiyong, Deputy Director of the National Bureau of Statistics, stated at a press conference on the 15th that the property market showed several positive developments in the first half of the year.

These include a four-month consecutive rise in month-on-month new home prices in Tier-1 cities, a four-month consecutive decline in the nationwide inventory of commercial housing, active secondary market transactions, and an overall improvement in market expectations.

Data indicates that since March, both new and pre-owned home prices in Tier-1 cities have increased month-on-month for four straight months.

From March to June, new home prices in these cities rose by 0.1% to 0.2% each month, while pre-owned home prices increased by 0.3% to 0.4%. Price declines in second- and third-tier cities have generally narrowed.

Furthermore, by the end of June, the nationwide inventory of commercial housing for sale was down 0.9% year-on-year, with the rate of decline accelerating by 0.5 percentage points from the previous month, marking the fourth consecutive monthly decrease.

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