Mainland property developers led the gains in Hong Kong stocks, with Greentown China Holdings Ltd (ASX: 03900) rising 7.49% to HK$5.815, C&D International Group Ltd (ASX: 01908) up 4.73% to HK$13.07, China Resources Land Ltd (ASX: 01109) gaining 4.00% to HK$30.68, and China Vanke Co., Ltd. (ASX: 02202) advancing 3.98% to HK$2.35.
On the news front, on October 21, Shiyan City released detailed implementation rules for the "8·28" real estate policy, becoming the first third- and fourth-tier city to implement the new policy and the ninth city nationwide to issue detailed implementation rules.
According to the China Index Academy, Shiyan, as the first third- and fourth-tier city to issue detailed rules, provides greater flexibility for policy implementation and offers a reference for more lower-tier cities.
Orient Securities pointed out that compared with other first- and second-tier cities that have already issued detailed rules, Shiyan has adopted differentiated arrangements in terms of transitional project scheduling and ancillary construction requirements, offering greater room for relaxation. It is currently the only city that allows certain transitional projects without pre-sale permits to secure financing under the old rules, and also the only city to establish provisions for lowering ancillary construction requirements.
Going forward, high-inventory and lower-tier cities may see more flexible implementation, and the market may further lower expectations for the negative impact of the new policy on property developers.
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