HK-listed mainland stocks in sharp correction as investors seek upside
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Hong Kong-listed mainland stocks fell yesterday as investors shifted their attention to other sectors that offered higher upside potential, analysts said.
Guangzhou R&F Properties dropped 4.63 per cent to close at HK$9.27, the sharpest fall among the major developers.
Shares in Poly Property Group dropped 4.47 per cent to close at HK$4.27, while Greentown China fell 4.12 per cent to HK$8.62, and China Resources Land fell 3.41 per cent.
"We talked to many investors at the investment forum held by our firm last week.
"They have shifted their focus to the sectors that benefited from the improvement in the property market and offered a higher upside potential than property stocks," said Nicole Wong, head of property research at investment bank CLSA.
"Cement stocks were one of their targets.
"That's why those stocks recorded a significant growth in recent weeks.
David Ng Ka-chun, head of China and Hong Kong research at Macquarie Capital Securities, said the fall in property stocks may have been because of disappointing recent sales.
Xinhua yesterday reported Minsheng Securities analyst Duan Yu saying that he did not expect the government would impose a property tax in the short run as there will be a once-in-a-decade leadership change later this year.
Lee Wee Liat, head of property research at BNP Paribas Securities, said falls in property stocks were triggered by new restrictions imposed on property sales by the Nanjing government.
It said it would not give projects pre-sale consent if the asking prices of the second- or third phases of new projects were more than 5 to 10 per cent higher than the previous phase.