Equity Research in HK and Mainland China

Li Tang

Thematic (Sector/Industry)

We expect further loosening to be ratcheted up by China central government as needed to offset economic pressures as the pandemic continues. The potential policy may include down-payment cuts, relaxing purchase restrictions or even interest rate cuts that can be deployed to boost the property market if and when needed. Any easing will be carefully measured to avoid a major leveraging up of the real estate, however.
We anticipate the moderate monetary loosening policies coming perhaps within the next week or two around the National People Congress meeting (exact dates does not yet to be released) likely to benefit the property sales in May. Developers traditionally increase the supply of new units and offer discounts towards the labour Festival (1-5 May). As more developers begin to offer price discounts ahead of Labour Festival holiday, it may help to drive transaction volumes as well. Property transaction volumes in 30 survey cities are also showing a trend improved as continued policy support releases pent-up end-user demand. 
More cities indicated their intention to loosen property policy last week and property transaction volumes increased on wow basis. However, the majority of cities still saw property transaction volumes decline on a YoY basis in the fourth week of April. We believe we will see more local governments begin to test the limits of permitted easing and the process conduct by the central government, which should lead to higher transaction volumes coming into H2.

We expect further loosening to be ratcheted up by China central government as needed to offset economic pressures as the pandemic continues. The potential policy may include down-payment cuts, relaxing purchase restrictions or even interest rate cuts that can be deployed to boost the property market if and when needed. Any easing will be carefully measured to avoid a major leveraging up of the real estate, however.
We anticipate the moderate monetary loosening policies coming perhaps within the next week or two around the National People Congress meeting (exact dates does not yet to be released) likely to benefit the property sales in May. Developers traditionally increase the supply of new units and offer discounts towards the labour Festival (1-5 May). As more developers begin to offer price discounts ahead of Labour Festival holiday, it may help to drive transaction volumes as well. Property transaction volumes in 30 survey cities are also showing a trend improved as continued policy support releases pent-up end-user demand. 
More cities indicated their intention to loosen property policy last week and property transaction volumes increased on wow basis. However, the majority of cities still saw property transaction volumes decline on a YoY basis in the fourth week of April. We believe we will see more local governments begin to test the limits of permitted easing and the process conduct by the central government, which should lead to higher transaction volumes coming into H2.

China Property Weekly: Sales Rise on Signs of Government Support

IPOs and Catalysts/Events, Global Equity Research Ltd

Arun George

IPOs and Catalysts/Events

Uncompromised, Independent, Conflict-Free Research

Global Equity Research Ltd

Global Equity Research was started in 2017 by a group of experienced research professionals. It was founded on a passionate belief in the importance and the need for uncompromised, independent, conflict-free research. We aim to provide differentiated and actionable primary and bottom up fundamental research.

Equity Capital Markets

China Merchants Commercial REIT / Equity Capital Markets

<a href="https://www.smartkarma.com/entities/china-merchants-commercial-reit" target="_blank" data-smartkarma-citation="entities:28290:1" rel="noopener">CMC Reit (CMCREIT HK)</a> is a REIT formed to primarily own and invest in high quality income-generating commercial properties in China. It is currently pre-marketing a Hong Kong IPO to raise $400 million. CMC’s will be the first H-REIT IPO since the listing of <a href="https://www.smartkarma.com/entities/spring-real-estate-investment-trust" target="_blank" data-smartkarma-citation="entities:19888:1" rel="noopener">Spring REIT (1426 HK)</a> in 2013.<div class="content-highlight">CMC’s portfolio comprises of five properties, all located in Shekou, Shenzhen City. The properties are New Times Plaza, Cyberport Building, Technology Building, Technology Building 2 and Garden City Shopping Centre. Overall, we believe that CMC offers an attractive value proposition for investors willing to invest in a niche segment of the Asian REIT sector.</div>

CMC Reit (CMCREIT HK) is a REIT formed to primarily own and invest in high quality income-generating commercial properties in China. It is currently pre-marketing a Hong Kong IPO to raise $400 million. CMC’s will be the first H-REIT IPO since the listing of Spring REIT (1426 HK) in 2013.CMC’s portfolio comprises of five properties, all located in Shekou, Shenzhen City. The properties are New Times Plaza, Cyberport Building, Technology Building, Technology Building 2 and Garden City Shopping Centre. Overall, we believe that CMC offers an attractive value proposition for investors willing to invest in a niche segment of the Asian REIT sector.

China Merchants Commercial REIT IPO Initiation: The REIT Idea?

China

China Merchants Shekou Industrial Zone Holdings Co., Ltd. operates as a park integrated developer. The Company conducts land and real estate development and management, community development, and other services. China Merchants Shekou Industrial Zone Holdings provides services in China.

China Merchants Shekou Industr (001979 CH)

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China Merchants Shekou Industr (001979 CH)

China Property Weekly: Sales Rise on Signs of Government Support

We expect further loosening to be ratcheted up by China central government as needed to offset economic pressures as the pandemic continues. The...

Li Tang

China Merchants Commercial REIT IPO Initiation: The REIT Idea?

CMC Reit (CMCREIT HK) is a REIT formed to primarily own and invest in high quality income-generating commercial properties in China. It is...

Arun George

Price Gauge

52-week Range

Market Cap (USDm)

P/E

Dividend (Yield)