Huatai Securities Shifts to Positive Stance on Real Estate Sector, Focuses on Developers Better Adapted to New Models

36Kr learned that Huatai Securities reported that as of October 8, Beijing, Shanghai, Guangzhou, and Wuhan had successively released detailed rules for housing sales system reforms. Compared with the plans in northern and eastern China's major cities, Wuhan offered more flexibility; future rules in second- and third-tier cities may be generally more flexible than those in Beijing, Shanghai, and Guangzhou, helping to buffer the impact of the sales system reform on developers and the industry. Overall, market reactions to the sales system reform have been relatively sufficient, and attention will now refocus on the recovery process for real estate volume and prices. Dual optimization at both supply (sales system reform) and demand (mortgage interest subsidies) could drive accelerated price bottoms in more cities. Huatai Securities has adopted a positive stance toward the real estate sector, focusing on developers with strong financing capabilities, product strength, engineering capabilities, or asset holding and operational management; leading second-hand housing brokers; leading Hong Kong-based developers; and high-quality commercial management and property management companies.