During midday trading on September 21, the property sector continued its upward momentum, with leading developers showcasing notable strength. China Vanke Co., Ltd. and Greenland Holdings hit their daily limit-up, while stocks including Binjiang Group, Poly Developments, and China Merchants Shekou all advanced more than 6%. On the ETF front, interest in the property-focused Huabao Property ETF (159707) rose significantly, with its underlying index climbing over 5% in the afternoon session.
Kaiyuan Securities noted that following the rollout of the "August 28 policy package," local authorities are actively evaluating and providing feedback, with clearer implementation guidelines expected across various regions by the fourth quarter of 2026. The latest policy marks a major overhaul of foundational systems in the real estate industry, steering the sector toward a more stable and solid growth trajectory.
On the demand side, Kaiyuan Securities believes there remains substantial room for easing in areas such as relaxation of restrictive policies in core cities, provident fund loans, and urban renewal initiatives. If policy intensity and implementation pace are further strengthened, the process of stabilizing and recovering the property market could accelerate.
From a valuation perspective, leading developers, particularly central and state-owned enterprises along with quality real estate firms, are still trading at historically low levels. As of September 20, the CSI 800 Real Estate Index's latest price-to-book ratio stood at just 0.5 times, ranking below approximately 98% of readings over the past decade. This highlights a clear undervaluation, suggesting significant room for upward correction.
For investors seeking exposure to central state-owned enterprises and quality developers, the Huabao Property ETF (159707) warrants close attention. This fund tracks the CSI 800 Real Estate Index, which brings together top-tier quality developers with a high concentration of central state-owned enterprises. In the context of ongoing industry consolidation, leading developers may offer greater upside flexibility.
Data sources: Shanghai and Shenzhen stock exchanges, Wind, CSI Index, among others. Institutional views are referenced from Kaiyuan Securities' report titled "Ministry of Housing Clarifies Real Estate Enters Stock Era, Shifting Toward Quality-Driven Growth Stage."
Regarding ETF fees: When investors subscribe to or redeem fund shares, the authorized agency may charge a commission of up to 0.5%, while on-exchange trading fees are subject to actual charges by securities firms. No sales service fee is imposed.
Risk disclosure: The Huabao Property ETF passively tracks the CSI 800 Real Estate Index, with a base date of December 31, 2004, and a release date of December 21, 2012. Index constituent stocks are adjusted periodically according to the index compilation rules, and historical backtested performance does not indicate future index returns. Index constituents mentioned in this article are for illustration purposes only, and individual stock descriptions do not constitute investment advice in any form, nor do they represent the holdings or trading activities of funds managed by the fund manager. The fund manager assesses the fund's risk level as R3-moderate risk, suitable for investors with a balanced (C3) profile or above. Any information appearing in this article (including but not limited to stocks, comments, forecasts, charts, indicators, theories, and any form of expression) is for reference only. Investors must take sole responsibility for their independent investment decisions. Furthermore, any views, analyses, or forecasts in this article do not constitute investment advice to readers, and no liability is assumed for any direct or indirect losses arising from the use of this content. Fund investment involves risks; past performance of a fund does not represent its future returns, and the performance of other funds managed by the fund manager does not constitute a guarantee of fund performance. Investors should invest cautiously.
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