On July 21, China Resources Land fell 3.07% in regular trading, trading at HK$33.46/share, with turnover of HK$384 million. The decline was driven by CLSA's downgrade of its target price from HK$42.4 to HK$40.8, alongside significant earnings forecast reductions.

CLSA cut its earnings estimates for the company by 18.2%, 10.1%, and 10.8% for fiscal years 2026 through 2028 respectively, citing higher land costs leading to notable gross margin compression and increased inventory impairment provisions from legacy holdings. While CLSA maintained its outperform rating, it noted that disposal gains from the Chengdu MixC institutional REIT and recurring business profit growth would only partially offset weakening development profits.

Adding to bearish sentiment, exchange data from July 20 showed short selling in the stock reached HK$326 million, representing a 47.73% short ratio — ranking among the top three in the real estate sector. Goldman Sachs also flagged potential deepening of development property impairments, though it maintained its buy rating with a HK$36.6 target price, citing disposal gains and stable rental income as buffers.

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