Multiple Regions Optimized Real Estate Policies, Property Sector Rose

Several major Chinese provinces and cities, including Guangzhou, Shenzhen, and Suzhou, have implemented a series of optimized real estate policies aimed at stabilizing the property market and revitalizing existing housing stock. These measures include relaxing provident fund loan conditions, increasing loan limits, and facilitating state-owned enterprise acquisitions of second-hand homes. The policy shifts have triggered a recovery in transaction activity across core cities and a notable rally in real estate stocks, signaling a marginal improvement in industry fundamentals and financing environments.

The real estate sector in China experienced a significant boost following the release of supportive policies across multiple regions, including Guangzhou, Shenzhen, Xiamen, Hunan, and Suzhou. Key initiatives such as the implementation of housing "trade-in" policies and the advancement of state-owned enterprise (SOE) acquisitions of existing second-hand housing are designed to activate replacement demand. As of the market close on May 28, the real estate development sector rose by 0.99% and real estate services increased by 1.39%. Individual stocks including Beichen Property, Tianjian Group, Xiangjiang Holdings, and Vantone Development hit their daily limits, while others like Xinhuangpu and Worldunion were among the top gainers.

In Guangzhou, the "Sui Eight Measures" issued on April 30 have already begun to show tangible results in market activity. Huang Guanglie, Deputy Secretary General of the Guangzhou Municipal Government, reported that weekly visits to new residential projects increased by 26.9% and subscriptions rose by 36.9% month-over-month. Additionally, the city's housing provident fund policy has seen a surge in activity, with 4,484 loan applications totaling 4.746 billion yuan accepted, representing year-on-year increases of 47.05% and 56.43% respectively. Local SOEs, such as Guangzhou Anju Group, are also accelerating pilot programs for the acquisition and revitalization of second-hand housing.

Further regulatory refinements include the Guangzhou Housing Provident Fund Management Center's new measures for converting commercial personal housing loans into provident fund loans. The updated rules remove the restriction that the original commercial loan bank must be a provident fund entrusted bank and reduce the required cumulative contribution duration from 60 months to 36 months. Furthermore, the mandatory disbursement period for the original commercial loan was shortened from three years to two years. These adjustments, alongside broader directives from the CPC Central Committee to prevent risks and stabilize the market, are intended to consolidate the ongoing recovery and strengthen confidence in the broader capital market.