The real estate sector broke out! Individual stocks have a daily limit.

The A-share market fluctuated at a low level this morning, with the main indexes falling to varying degrees, and the real estate sector soaring, setting off a wave of daily limit and becoming one of the biggest highlights of the market in the morning.

New shares continue to be strong, and Xuchang Smart, a new share listed today, once rose more than 100% in the morning session.

The real estate sector rose sharply and set off a wave of daily limit.

The A-share market fluctuated at a low level this morning. As of the close of the morning, the Shanghai Composite Index fell slightly by 0.38%.

In terms of industry sector and track, the real estate sector rose sharply, with the intraday increase exceeding 3%. Individual stocks in the sector set off a daily limit, and Shahe shares, Pudong Jinqiao, China Communications Real Estate, Waigaoqiao and other stocks had daily limit.

In the news, Xiao Yuanqi, deputy director of the State Financial Supervision and Administration, said at the press conference of "High-quality Development of Financial Services Economy and Society" of the State Council Office that recently, we have actively cooperated with industry authorities and local governments to comprehensively implement policies from the supply and demand sides of the real estate market and continuously increase financial support. The Ministry of Housing and Urban-Rural Development, the People’s Bank of China and the General Administration of Financial Supervision have made clear the housing credit policy of "recognizing housing but not loans". The People’s Bank of China and the General Administration of Financial Supervision issued "16 financial measures" to support the stable and healthy development of the real estate market, and studied and established the dynamic adjustment mechanism of the first home loan interest rate policy, lowered the lower limit of the second home interest rate policy, and guided banks to reduce the interest rate of the first home loan. These policies and measures have played and are playing an active role in providing real estate financial services, stabilizing the reasonable financing demand of the real estate market and promoting the stable and healthy development of real estate.

Xiao Yuanqi said at the press conference of the State Council’s "High-quality Economic and Social Development of Financial Services" that in January this year, the Ministry of Housing and Urban-Rural Development and the General Administration of Financial Supervision jointly issued the "Notice on Establishing a Coordination Mechanism for Urban Real Estate Financing", requiring cities at and above the local level to establish a coordination mechanism for real estate financing, build a communication platform between government, banks and enterprises, and promote the accurate docking of housing enterprises and financial institutions.

Xiao Yuanqi said that at present, banks mainly have several channels for real estate financing: first, development loans to real estate enterprises and personal housing loans (mortgage loans). Up to now, the balance of development loans and personal housing loans is 12.3 trillion yuan and 38.3 trillion yuan respectively. In 2023, 3 trillion yuan of development loans and 6.4 trillion yuan of housing mortgage loans were issued respectively, which add up to nearly 10 trillion yuan, which is still very large. Second, banks invest in real estate corporate bonds. At the end of last year, the balance of bonds purchased by banks from real estate enterprises was 427.5 billion yuan, and the amount of bonds issued by banks investing in real estate enterprises was relatively large, which increased by 15% in 2023 compared with 2022. In addition, in 2023, banks also provided real estate enterprises with M&A loans and stock extension loans, which add up to more than 1 trillion yuan.

In terms of Baojiaolou, Xiao Yuanqi said that we actively cooperated with the Ministry of Housing and Urban-Rural Development and the People’s Bank of China to provide financial support. By the end of 2023, most of the special loans of 350 billion yuan for "guaranteed delivery building" have been put into the project, and commercial banks have also provided corresponding commercial supporting financing to ensure the completion of the task of "guaranteed delivery building".

Xiao Yuanqi said that the General Administration of Financial Supervision will guide financial institutions to make full use of the existing financial support policies, continue to do a good job in real estate financial services, maintain the overall stability of real estate credit, meet reasonable financing needs, and contribute to the stable and healthy development of the real estate market.

In addition to the real estate sector, media, building materials, light industrial manufacturing, environmental protection and other sectors also rose in the top.

The concept of "Chinese prefix", which rose sharply yesterday, surged in the morning session. The Wind Chinese prefix central enterprise index once rose by more than 1%, and then the increase was significantly narrowed.

In terms of trading stocks, Shenzhen China A rose 8.13% in the morning, and once again had a daily limit. If today is included, the stock has touched the daily limit for 14 consecutive trading days.

Last night, Deep China A issued an announcement on the reply to the letter of concern of Shenzhen Stock Exchange. According to the announcement, as of January 25, 2024, the closing price of the company’s A shares was 13.53 yuan/share, and the short-term change of the company’s A shares deviated greatly from the Shenzhen A-share index in the same period, which was higher than the increase of companies in the same industry in the same period. There may be irrational speculation risks. Investors are advised to fully understand the trading risks in the secondary market, make prudent decisions and invest rationally.

According to the announcement, after consulting the website data of CSI Index Co., Ltd., as of January 25, 2024, the latest rolling P/E ratio of textile, apparel and jewelry in the CSI industry classification 2530 of the company was 15.57 times; The latest rolling P/E ratio of C37 railway, shipbuilding, aerospace and other transportation equipment manufacturing industry, which belongs to the CSRC, is 29.49 times. The current P/E ratio of the company’s A shares deviates significantly from the industry average. Investors are advised to pay attention to trading risks, make prudent decisions and invest rationally.

The announcement also stated that from January 9, 2024 to January 25, 2024, the cumulative increase of the company’s A-share price was 202.68%. Since the company’s current fundamentals have not changed significantly, the recent share price increase does not match the company’s fundamentals. The stock price may be influenced by multiple factors such as macro-environment, market environment, industry development, company operation and investors’ preferences. Investors are advised to pay attention to trading risks, make prudent decisions and invest rationally.

At the same time, the company also faces the risk of price fluctuation of main raw materials, the risk of intensified market competition and the risk of falling market demand.

Xuchang Smart, a new stock, once rose more than 100% in the morning session.

Today, there is a new stock listed in the A-share market, which is Xuchang Intelligent. The stock once rose more than 100% in the morning session.

According to the prospectus, the main business of Xuchang Intelligent is the research, development, design, assembly, sales and service of intelligent power distribution products and new energy products and systems, as well as the general contracting business of power engineering. The main products and services include: high and low voltage switchgear and intelligent switchgear, distribution automation equipment, intelligent distribution system and intelligent components, rail transit power equipment, power engineering general contracting business, new energy solutions, processing services and others. The company has the ability to provide integrated solutions such as intelligent power distribution products and systems, urban rail transit power supply, "one-stop" power general contracting, smart community, energy cloud platform, electric vehicle charging and replacing, data center, energy efficiency management system, microgrid energy storage system, and integrated optical storage and charging system.

The company’s products are widely used in municipal engineering, rail transit, energy and electricity, data communication, industrial and mining enterprises, real estate, low-carbon parks and other fields, in the State Grid Smart Grid Research Institute, Beijing Metro, Shijiazhuang Metro, Zhengzhou Metro, Nanchang Metro, Zhengzhou East Railway Station, Chongqing West Railway Station, Beijing Daxing International Airport, Zhangbei Scenery Transmission and Storage Demonstration Project, Beijing World Expo, Beijing Winter Olympics, Guodian Pingtan Comprehensive Smart Energy Demonstration Project, and China Construction Seventh Bureau.

Editor: Zhu Yumeng