Investors' expectations for policy adjustments have accelerated amidst the recent slowdown in China's property sales data, HSBC Global Research remarked in its report.

To the broker, July is a volatile month with the window for policy announcements possibly opening at the end of the month during the CCP Politburo meeting. Following the optimistic market sentiment in the first half of the month, however, Chinese property stocks may experience profit-taking subsequently.

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HSBC Global Research remains upbeat and confident in the Chinese property sector. Even if sales momentum further slows, some stocks still have relative resilience against declines.

The broker was bullish on CHINA RES LAND (01109.HK)  -0.450 (-1.549%)    Short selling $25.79M; Ratio 9.394%   , believing that it has a quality investment property portfolio that can demonstrate resilience despite facing a consumption downgrade cycle. It also kept a Buy rating on C&D INTL GROUP (01908.HK)  -0.420 (-2.500%)    Short selling $1.40M; Ratio 5.855%   .

In addition, given CHINA JINMAO (00817.HK)  -0.030 (-2.256%)    Short selling $3.65M; Ratio 6.583%   's encouraging performance in luxury residential projects, HSBC Global Research forecasted the market to focus on its turnaround to profitability. As for CHINA OVERSEAS (00688.HK)  -0.180 (-1.322%)    Short selling $29.26M; Ratio 16.395%   , its P/E ratio dropped to as low as 0.3 times, the lowest among state-owned enterprises. The broker gave it a Hold rating, saying that its valuation had appropriately reflected earnings risks.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-16 12:25.)

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