Hong Kong Stock Movement | Mainland property stocks continue recent downtrend as institutions cite unmet policy expectations and lackluster performance during the traditionally strong spring season; real estate sector shows weakness.

Real estate stocks in China continued their recent downtrend. As of press time, R&F Properties (02777) fell by 6.02%, trading at HKD 0.39; Sunac China (01918) dropped by 4.46%, trading at HKD 1.07; Seazen Development (01030) declined by 1.45%, trading at HKD 2.04.

According to Zhitong Finance, real estate stocks in mainland China continued their recent decline. As of press time, R&F Properties (02777) fell 6.02%, trading at HKD 0.39; Sunac China (01918) dropped 4.46%, trading at HKD 1.07; Seazen Development (01030) declined 1.45%, trading at HKD 2.04.

In terms of market news, according to the National Bureau of Statistics, the sales area of newly constructed commercial housing from January to February was 92.93 million square meters, a year-on-year decrease of 13.5%, with the decline widening by 4.8 percentage points compared to the whole of 2025. In February, among the 70 large and medium-sized cities, the sales price of newly built commercial residential properties in first-tier cities remained flat month-on-month, shifting from a 0.3% drop in January, while registering a year-on-year decrease of 2.2%. Ten cities reported a month-on-month increase in the sales price of new commercial residential properties. Open Source Securities released a research report stating that the transaction areas of new homes in 30 cities nationwide and second-hand homes in 15 cities have both seen year-on-year declines for six consecutive weeks, reflecting the lackluster performance of the ‘mini-spring’ season.

Orient Securities issued a research report stating that the recent weak performance of the real estate sector can be attributed partly to unmet policy expectations and partly to the overall lackluster performance of the mini-spring season, which has not exceeded expectations. The market continues to exhibit common characteristics observed in previous mini-spring seasons and policy-driven surge transactions, such as volume growth at the expense of price cuts, stronger performance in the second-hand housing market compared to new homes, dominance by core cities, and a high proportion of刚需 housing transactions. Trading volume growth driven by price cuts suggests potentially weak sustainability, while the underperformance of new homes indicates that real estate companies still face significant challenges in improving profitability. Additionally, structural issues in transaction volumes suggest that the overall pressure on the property market remains substantial, with only sporadic signs of recovery.



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