Mainland property stocks rebounded in morning trading, as of press time, Longfor Group (00960) rose 7.16% to HK$5.09; China Vanke (02202) gained 4.41% to HK$2.485; China Resources Land (01109) advanced 3.93% to HK$31.24; Sunac China (01918) climbed 3.60% to HK$0.575.
On the news front, on October 15, Shenzhen and Hangzhou issued detailed rules related to the reform of the commercial housing sales system.
CSC Financial noted that since late September, seven cities—Beijing, Shanghai, Guangzhou, Wuhan, Tianjin, Shenzhen, and Hangzhou—have successively rolled out detailed rules for the 828 property policy. All seven cities focused on promoting off-plan sales, raising pre-sale thresholds, and facilitating the smooth implementation of the new policies through supporting buffer mechanisms.
Under the demonstration effect of these seven cities, the pace of detailed rule rollouts in other cities is expected to accelerate, and the industry landscape will see faster differentiation.
JPMorgan released a research report stating that during the National Day Golden Week, experts took a more cautious tone on the outlook for mainland property than expected. The bank expects that after nationwide policies are implemented, high-frequency sales data may weaken in the coming weeks, and the sector may underperform the broader market in the short term.
However, if margin expansion and home price stabilization spread from Shanghai to broader regions, the market may see a rebound opportunity re-emerge in the first half of 2027.
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