Longfor leads slide in Chinese developers amid weak China new home prices

China Overseas Land & Investment

24/10/2022 05:39

** Shares of Chinese property developer Longfor Group
 0960.HK  slump 11.7% to HK$16.86, lowest sine October 2018
    ** Stock set for the biggest daily pct fall since Aug. 10 if
losses hold; biggest percentage decliner in Hang Seng Index
 .HSI , Hang Seng property sub-index  .HSNP  and Hang Seng
Composite Index on properties and construction stocks  .HSCIPC  
    ** China's new home prices fell for the second straight
month in September, as its property sector grappled with a
mortgage boycott, a heightened debt crisis and COVID-19
restrictions that dimmed the economic outlook  urn:newsml:reuters.com:*:nL1N31P03M
    ** Daiwa maintains "neutral" stance on China property sector
as liquidity crisis continues to unfold and the brokerage 
prefers financially strong developers 
    ** Over the weekend, Daiwa reiterated "buy" on Longfor but
cut TP to HK$30.2 from HK$43.8, to factor in the brokerage's
lower contract sales projection with sentiment seen to be hit by
continuous liquidity issues of other developers 
    ** Country Garden  2007.HK , China Resources Land  1109.HK ,
China Overseas Land  0688.HK , and CIFI  0884.HK  fall between
6.6% and 8.6% 
    ** Hang Seng Mainland Properties Index  .HSMPI  plunges 8.5%
to all-time low; Hang Seng property sub-index  .HSNP  drops 5%
to lowest since October 2011
    ** Hang Seng Composite Index on properties and construction
stocks  .HSCIPC  falls 4.9%, benchmark index  .HSI  declines 5%
 (Reporting by Donny Kwok)
 ((donny.kwok@thomsonreuters.com))