Date of Report: September 26, 2024
Broker: CGS International Securities

Longfor Overview

Longfor Group is one of the top recommendations in the property sector, as noted by analysts in the September 2024 report. The company is well-positioned to benefit from China’s recent economic policies designed to support the property market, which has faced significant challenges throughout the year.

Policy Support for the Property Market

Following an unscheduled Politburo meeting on September 26, 2024, the Chinese government introduced new policy measures to stabilize the struggling property sector. The Politburo’s intervention comes at a critical time as property sales and prices have been in decline, with sales down by 18% in terms of area and 23.6% in terms of value during the first eight months of 2024.

Key Measures Benefiting Longfor

Among the key measures introduced to support the property market are reductions in mortgage rates, lower downpayment requirements for second homes, and increased financial support for “white list” property projects. Longfor, as one of the leading players in the real estate market, is expected to benefit from these initiatives, which aim to revive property demand and stabilize the market.

Focus on Inventory Management and Stabilization

The report highlights that one of the government’s primary goals is to manage the excess inventory in the property market and prevent further declines in property prices. Longfor is well-positioned to take advantage of the new policies aimed at optimizing unsold inventories and stabilizing property prices. The increased availability of loans and improved financial conditions for potential homebuyers are expected to create a more favorable market environment for Longfor.

Positive Long-Term Outlook

With China’s government focusing on supporting the property sector as part of its broader economic recovery strategy, Longfor is set to gain from the favorable policy environment. The stabilization of property prices, combined with increased consumer demand driven by supportive financial policies, creates a positive outlook for Longfor’s growth and market presence.

Conclusion

The September 26, 2024, report by CGS International Securities identifies Longfor as one of the key players in China’s property market poised to benefit from the recent wave of policy support. As the government continues to roll out targeted measures to revive the sector, Longfor’s strong position in the market gives it significant potential for growth in the coming months.