China's Property Sector Likely Has Potential for Some Upside

Dow Jones
08/04

0646 GMT - China's property sector likely has potential for some upside, say HSBC analysts in a research note. Although no major supportive measures were unveiled in the July Politburo meeting, the reiteration of a supportive stance is "still crucial to protecting the nascent sales recovery and reinforcing homebuyer sentiment," they say. HSBC expects local governments to roll out modest easing measures, such as the relaxation of the housing provident fund and targeted home purchase subsidies. HSBC sees "greater potential for upside surprises" among residential developers, with a preference for China Resources Land and C&D International Development.

 

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