2021年10月26日

Sell well, why Chinese property prices’ falling endlessly ‘?

楼市。孙睿 摄

The housing market. Sun Rui perturbation

China News Service, Beijing, March 9 (reporter Pang Wuji) After a surge on February 25, China’s real estate sector has a continuous pullback trend.

Oriental wealth network data show that as of the end of the 9th, the real estate sector fell 1.46% that day. Of the 135 real estate stocks, 104 fell. Among them, Beautiful Real Estate fell the most, up to 10.17 percent, Yunnan City Investment, China Happiness, Jiakaicheng and other stocks fell more than 4 percent.

In fact, on Feb. 25, property stocks briefly rallied. The Shanghai real estate index, for example, hit 6,665 points on the day, its highest point since Dec. 7, 2020. But the next day, on February 26th, property stocks plunged. The decline has not stopped. Data show that up to March 9, the SSE real estate index in March showed a trend of continuous decline, in which the SSE real estate index on March 9 was 6297 points, which has basically fallen back to the level on February 24.

But in the same period, the main real estate business performance is good, many enterprises appeared “good start”. China’s real estate transactions continued to slow in February, with sales data in many regions significantly better than the same month and better than expected. Business performance of real estate enterprises is rising. The top 100 real estate companies in January and February 2021 have achieved a sales volume of 1,853.3 billion yuan, up 105% year on year, according to the ranking list of real estate companies in January and February 2021 released by Crary Research Center.

China Vanke and Country Garden, two leading real estate companies, reported year-on-year sales growth of more than 40% and 60% in January and February, respectively.

The house sells well, the real estate stock price why “falls endlessly”?

E-house Real Estate Research Institute and the Shanghai Academy of Social Sciences Market Value Management Research Center released a report on the market value management of listed real estate enterprises, said the recent trend of real estate stocks and real estate business conditions have deviated, worthy of industry attention.

This divergence means that the operating data of real estate companies cannot be transmitted to their stock prices and market capitalization, which may interfere with the judgment of outside investors on the value of their investments, the report said. Therefore, on the basis of sound management, active market value management should become one of the important work of real estate enterprises.

Zhang Yongyue, dean of E-house Real Estate Research Institute and a tenured professor at East China Normal University, said that from a practical perspective, the proper management of market value is conducive to the healthy development of good companies and good stocks. At present, China’s real estate industry is entering the post-development era, and there have been many new changes in the external environment and internal operating environment, which have brought many new problems and challenges to the real estate enterprises, especially the listed real estate enterprises. At present, the market value management system of listed real estate enterprises is not perfect, which affects the daily management and strategic arrangements of enterprises. He suggested that the positive formation of relevant assessment and quantitative analysis, in order to promote the listing of housing enterprises better development.

Mao Yongchun, executive director of the Market Value Management Research Center of Shanghai Academy of Social Sciences and chairman of Shanghai Rongke Investment Management Co., Ltd., said that market value management performance should be included in the assessment system. If the management of market value is not included in the corporate strategy, does not become an important part of the work of the board of directors, does not include the assessment, the management of market value is just a conceptual and impulsive work.

In addition, Shanghai normal university business school professor Cui Guangcan thinks, should actively study the development of Chinese real estate market value of listed companies and corporate fundamentals, establish objective and scientific evaluation system, especially to pay attention to market with the company’s total assets, net assets, profitability, revenue, big shareholders nature, the relation between the indexes of the added value of enterprises. Through multi-level index construction, the index system of market capitalization and company value growing together and premium level developing harmoniously is established. Through such research, we will really find the direction to improve the market value management level of China’s listed real estate companies. (after)

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