China's Property Sector Likely in Gradual Fundamental Recovery

Dow Jones08-11 16:01

0801 GMT - China's property sector is likely in a "gradual fundamental recovery even without substantial incremental stimulus," according to HSBC analysts in a research note. Beijing rolled out relaxations on home-purchase restrictions earlier this month, they point out. This is in line with HSBC's expectations that local governments are likely to deploy "modest easing measures to sustain sales momentum," they say. "Policy, in our view, is increasingly serving as a safeguarding rather than a stimulus role, stabilizing price expectations and anchoring homebuyer sentiment," they say. HSBC prefers China Resources Land and C&D International Investment for their leading position in high-end projects and stronger earnings visibility.

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