Date of Report: September 26, 2024
Broker: CGS International Securities
CR Land Overview
China Resources Land (CR Land) is one of the top property sector picks by analysts, reflecting its potential to benefit from the Chinese government’s recent efforts to stabilize the struggling property market. The September 2024 report highlights CR Land as a key beneficiary of the new policy measures aimed at reviving the sector.
Impact of Property Market Policies
The Politburo meeting on September 26, 2024, came just days after a major policy package was introduced to support China’s economy. Among the key initiatives was the introduction of policies aimed at stabilizing the property market, which had seen a sharp decline in sales and prices during 2024. In the first eight months of 2024, property sales dropped by 18% in terms of area and 23.6% in terms of value, with prices continuing to trend downward.
Policy Support for Property Sector
CR Land stands to benefit from government efforts to address these challenges in the property sector. The policy measures announced include reducing mortgage rates, lowering downpayment requirements for second homes, and encouraging financial support for “white list” projects. These steps are designed to alleviate the downward pressure on property prices and inventory, creating a more favorable environment for property developers like CR Land.
Focus on Inventory Management and Market Stabilization
The report also notes that efforts are being made to optimize existing inventories in the property market, which aligns with CR Land’s business model. With the government focusing on stabilizing market conditions and preventing further declines, CR Land is well-positioned to take advantage of these supportive measures. This includes potential improvements in loan availability and adjustments to property-related taxes and regulations, all aimed at rejuvenating the sector.
Long-Term Growth Prospects
With the Chinese government’s renewed commitment to stabilizing the property market, CR Land is set to benefit from the upcoming policy implementations. As one of the preferred names in the sector, the company is expected to leverage these policies to strengthen its market position and capitalize on the potential recovery in property demand.
Conclusion
The September 26, 2024, report by CGS International Securities underscores CR Land’s favorable position in the evolving property market landscape. The company is poised to gain from the Chinese government’s focused efforts on stabilizing the sector through a combination of fiscal, financial, and regulatory support measures.
