The Economic Information Daily reported on the 30th that property stocks led the decline among blue chips. Longfor (00960) fell 5.2%, closing at HK$5.47; China Overseas (00688) dropped 4.9%, closing at HK$12.71; Run Run Shaw (01109) declined 3.6%, closing at HK$29.36; and Vanke Enterprise (02202) plunged 8%, closing at HK$2.585.
The Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration issued a notice stating that to strengthen coordination between fiscal and financial policies and support urban and rural residents' rigid housing demand, a nationwide policy to subsidize interest on home purchase loans will be implemented starting October 1. This policy aims to reduce the interest burden on commercial personal housing loans for families purchasing their first home, with an initial implementation period of one year. The subsidy standard is as follows: for eligible first-home commercial personal housing loans newly issued by banks, financial departments will provide interest subsidies at an annualized rate of 1 percentage point for up to 5 years based on the loan principal. The maximum loan amount eligible for subsidy per household is RMB 1 million, meaning a maximum interest saving of RMB 50,000.
*Morgan Stanley expects new policy insufficient to break deleveraging trap*
In response, Morgan Stanley published a research report stating that Chinese authorities have announced targeted mortgage interest subsidies and quasi-fiscal support for investment. The overall package is modest in scale and, while helpful in providing a floor for economic growth, is insufficient to break the deleveraging trap. The firm expects full-year real GDP growth to remain near the lower end of the 4.5% to 5% target range.
Morgan Stanley described the mortgage interest subsidy policy as "small-scale and targeted," primarily benefiting first-home buyer families in non-first-tier cities. It estimates the annual subsidy will amount to approximately RMB 15-20 billion, at the lower end of the bank's and market expectations. Morgan Stanley believes this is a moderate measure aimed at providing a growth floor but is unlikely to reverse the trend of household deleveraging driven by weak confidence.
Currently, the Hang Seng Index stands at 24,426, down 96 points or 0.4%, with main board turnover exceeding HK$6.4 billion. The Hang Seng China Enterprises Index is at 8,152, down 26 points or 0.3%. The Hang Seng Tech Index is at 4,239, down 9 points or 0.2%. The current-month HSI futures are at 24,391, down 58 points, at a discount of 36 points. The current-month HSCEI futures are at 8,130, down 10 points, at a discount of 22 points. The current-month Tech Index futures are at 4,246, up 1 point.
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The Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration issued a notice stating that to strengthen coordination between fiscal and financial policies and support urban and rural residents' rigid housing demand, a nationwide policy to subsidize interest on home purchase loans will be implemented starting October 1. This policy aims to reduce the interest burden on commercial personal housing loans for families purchasing their first home, with an initial implementation period of one year. The subsidy standard is as follows: for eligible first-home commercial personal housing loans newly issued by banks, financial departments will provide interest subsidies at an annualized rate of 1 percentage point for up to 5 years based on the loan principal. The maximum loan amount eligible for subsidy per household is RMB 1 million, meaning a maximum interest saving of RMB 50,000.
*Morgan Stanley expects new policy insufficient to break deleveraging trap*
In response, Morgan Stanley published a research report stating that Chinese authorities have announced targeted mortgage interest subsidies and quasi-fiscal support for investment. The overall package is modest in scale and, while helpful in providing a floor for economic growth, is insufficient to break the deleveraging trap. The firm expects full-year real GDP growth to remain near the lower end of the 4.5% to 5% target range.
Morgan Stanley described the mortgage interest subsidy policy as "small-scale and targeted," primarily benefiting first-home buyer families in non-first-tier cities. It estimates the annual subsidy will amount to approximately RMB 15-20 billion, at the lower end of the bank's and market expectations. Morgan Stanley believes this is a moderate measure aimed at providing a growth floor but is unlikely to reverse the trend of household deleveraging driven by weak confidence.
Currently, the Hang Seng Index stands at 24,426, down 96 points or 0.4%, with main board turnover exceeding HK$6.4 billion. The Hang Seng China Enterprises Index is at 8,152, down 26 points or 0.3%. The Hang Seng Tech Index is at 4,239, down 9 points or 0.2%. The current-month HSI futures are at 24,391, down 58 points, at a discount of 36 points. The current-month HSCEI futures are at 8,130, down 10 points, at a discount of 22 points. The current-month Tech Index futures are at 4,246, up 1 point.
| Stock (Code) | Current Price (HK$) | Change (%) |
|---|---|---|
| Sunac China (01918) | 0.655 | Down 5.07% |
| Longfor (00960) | 5.47 | Down 5.2% |
| Vanke Enterprise (02202) | 2.585 | Down 8.01% |
| China Overseas (00688) | 12.71 | Down 4.94% |
| Run Run Shaw (01109) | 29.36 | Down 3.61% |
| Yuexiu Property (00123) | 3.355 | Down 2.75% |
| CIFI Holdings Group (00884) | 0.034 | Up 3.03% |
| China Aoyuan (03883) | 0.038 | No change |
| Agile (03383) | 0.134 | No change |
| China Jinmao (00817) | 1.29 | Down 5.84% |
| Greentown (03900) | 6.335 | Down 5.45% |
