On May 6, the A-share market opened lower and moved lower, with the real estate sector leading the decline.
Wind information data shows that as of the close of the day, the real estate sector as a whole fell by 4.79%, and individual stocks generally fell. Among them, Zhonghua Enterprise (600675.SH), Hualian Holdings (000036.SZ), Tiandiyuan (600665.SH), China Wuyi (000797.SZ), Everbright Jiabao (600622.SH) and others fell by the limit.
At the same time, Bright Real Estate (600708.SH), Nanshan Holdings (002314.SZ), Cinda Real Estate (600657.SH), Zhongtian Finance (000540. SZ), Pudong Jinqiao (600639.SH), Joy City (000031.SZ) and other stocks fell by more than 9%; including Sunshine City (000671.SZ), Greenland Holdings (600606.SH), Xincheng Holdings (601155.SH) , China Merchants Shekou (001979.SZ), Shimao (600823.SH) and other 42 stocks fell more than 5%.
Property stocks in the Hong Kong stock market were also lower. As of the close of the day, the Hang Seng Properties construction industry as a whole fell by 3.5%. Except for China Dili (1387.HK), LVGEM China Properties (0095.HK) and suspended stocks, the rest of the stocks closed down. Among them, Tianyu Properties (0059.HK) fell 18.8%, Ronshine China (3301.HK) fell 12.5%, Sunac Services (1516.HK) fell 10.54%, and Greentown Services (2869.HK) fell 10.39%.
In addition, CIFI Yongsheng Service (1995.HK), Country Garden Service (6098.HK), Jinke Service (9666.HK), Country Garden (2007.HK) , Xincheng Yue Service (1755.HK), CIFI Holdings Group (0884.HK), and Xincheng Development (1030.HK) all fell by more than 8%.
As real estate companies successively disclose their 2021 annual reports, Tianfeng Securities’ research report data shows that in 2021, the operating income of 103 mainstream listed real estate companies in A+H shares will increase year-on-year. 12.5%, down 1.2 percentage points from 2020; net profit attributable to the parent decreased by 49.2% year-on-year, down 44.3 percentage points from 2020.
In terms of sales, in 2021, the 69 A-share real estate companies as a whole will receive a year-on-year increase of 6.3% in cash received from sales of goods and provision of labor services, and the growth rate is lower than that in 2020. 0.1 percentage point. The exposure of industry credit risks, the slowdown in house price growth, and the real estate tax pilot have significantly damaged the confidence in the sales market. However, in terms of net cash flow from operating activities, the total net cash flow from operating activities of listed real estate enterprises in 2021 will continue to increase. Large and medium-sized real estate enterprises have achieved a net inflow of cash flow from operating activities for three consecutive years, and the net cash flow of small and medium-sized real estate enterprises Significant increase.
The report of Tianfeng Securities pointed out that the (real estate) industry will experience the darkest moment in 2021, the fundamentals and credit levels will be deeply bottomed, and a number of profit indicators of listed real estate companies will hit record highs. The lowest level since 2011. Large real estate enterprises and state-owned enterprises still showed strong resilience.
On May 6, Xinhua News Agency issued a commentary stating that at present, the fundamentals of my country’s real estate market have not changed, and housing demand is still strong. The urbanization rate of my country’s permanent population is 63.9%, and it is still in the stage of rapid urbanization. Every year, more than 11 million new urban jobs are created, which brings a large number of new housing needs.
Xinhua’s commentary pointed out that at the Politburo meeting of the CPC Central Committee held on April 29, it was proposed to adhere to the position that houses are for living in, not for speculation, and support local governments Proceed from the local reality to improve real estate policies, support rigid and improved housing demand, optimize the supervision of pre-sale funds for commercial housing, and promote the stable and healthy development of the real estate market. At present, to fully implement the spirit of the Politburo meeting of the CPC Central Committee, it is necessary to maintain the positioning, implement policies according to the city, work hard on the accuracy of regulation, effectively manage and control key risks, do a good job of “stability”, and take comprehensive measures to promote the real estate industry into a benign cycle.