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The news of ``obeying the rules'' shakes up the 5 real estate stocks, a total of 84 billion in market value has evaporated

2021-09-20T10:03:14.458Z


It is rumored that the central government urges local real estate developers to help solve the housing shortage and will no longer tolerate "monopoly behavior." Affected by the news, local real estate stocks went on sale today (20th). Among them, the five major developers were all hit hard, Henderson ﹙001


It is rumored that the central government urges local real estate developers to help solve the housing shortage and will no longer tolerate "monopoly behavior."

Affected by the news, local real estate stocks went on sale today (20th).

Among them, the five major developers were all hit hard. Henderson Land (0012) plugged in 13.2% and closed at 28.95 yuan, the biggest drop; New World (0017) plugged in 12.3%, and closed at 30.4 yuan; Xindi (0016) plugged in 10.3%, and closed at 94.5 yuan; Changshi (1113) inserted 9.3% and closed at 41.85 yuan; Xinzhi (0083] inserted 5.6% and closed at 10.1 yuan.

The stock market value of the five major real estates evaporated in a total of about 83.7 billion yuan in a single day, of which the market value of SHKP was 31.6 billion, Hengdi was 21.3 billion, Changshi was 15.7 billion, New World was 10.7 billion, and Xinzhi was 4.4 billion.

Foreign media reported that the central government informed Hong Kong real estate tycoons that "the rules of the game have changed."

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The triggering of this panic was due to a report by Reuters that the central government has proposed a new task for Hong Kong’s powerful real estate tycoons: to use resources and influence to support Beijing’s interests and help resolve possible destabilization. Housing shortage in China.

The report also quoted a mainland official saying that the Hong Kong real estate tycoon was told that "the rules of the game have changed" and that "monopoly behavior" is no longer tolerated, and that "in addition to observing the rules, but also patriotic."

Five major developers Motong: Hengdi has the greatest downside risk

Although it is not yet known how the central government will recruit to solve the housing problem in Hong Kong, Morgan Stanley issued a report stating that supply is the most important factor in housing today’s affordability. Once the government makes a major announcement involving land supply, it will cause real estate stocks. Downgrading, in the worst-case scenario, for example, the supply target is increased from 35,000 to 100,000 per year, and the property market will drop by 20%.

But the bank added that under the basic scenario, property prices are expected to rise 9% this year and another 5% next year.

The Motong report pointed out that the bank is concerned about how local developers will respond to the uncertainty of the housing problem, assuming two stress test scenarios, that is, all agricultural land is donated to the government for free, and the cash flow of all developers in future development projects The discounted valuation is zero. It is estimated that the downside risk of Cheung Kong and New World Development's current stock price level is the smallest, while the downside risk of Xinzhi and Xindi reaches 20%, and the downside risk of Henderson Land is the highest, reaching 37%.

The market is concerned about how the government solves the housing problem, such as using regulations to reclaim farmland.

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Five big families have lost more than 40 billion net worth

As property prices are "steady off the land", the government has repeatedly stated that it will increase land supply through a multi-pronged approach, including reclamation, expropriation of brownfields in the New Territories, resumption of private land under the Land Resumption Ordinance, and introduction of pilot land sharing Plans, reconstruction of old districts, etc.

According to statistics from Motong, Henderson Land has the most agricultural land at 44 million square feet, making it the developer with the most agricultural land in the New Territories in Hong Kong.

Next is Xindi, with an estimated 31 million square feet of farmland on hand.

New World is expected to have 16.46 million square feet, Cheung Kong has 10 million square feet, and the remaining major developers have a total of only 6 million square feet.

It is hard to say how the policy risks will specifically impact local developers, but after a fall today, according to the shareholding information disclosed by the Hong Kong Stock Exchange, the net worth of the five major real estate stock shareholders lost about 43.2 billion yuan in a single day.

Among them, Lee Shau-kee and his family members lost about 15.5 billion yuan in the value of Henderson's stock market; Kuang Xiaoqing and family members lost about 13.1 billion yuan in the stock market value of Xindi; Li Ka-shing and family members lost about 7.2 billion yuan in the value of the stock market. ; Zheng Jiachun and his family members lost about 4.8 billion yuan in the value of New World’s stock market; Huang Zhixiang and his family members lost about 2.6 billion yuan in the value of the stock market.

Source: hk1

All news articles on 2021-09-20

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