Movement Alert|SUNAC Falls 5.38% in Regular Trading, Inner Property Stocks Continue Pullback as Citi Warns of Profitability Impact from New Sales Regime

Market Focus
Sep 25

On September 25, SUNAC fell 5.38% in regular trading, trading at HK$0.615/share, with turnover of approximately HK$10.37 million. The decline extends the sector-wide retreat observed over recent sessions following an earlier rally driven by policy expectations.

On the news front, inner property stocks have been under renewed selling pressure after Citi issued a research note warning that the rollout of the completed-property sales system could cause new home transaction volumes and new construction starts to decline by 30% over the next two years, while cash cycles may extend from 6-10 months to 1.5-2.5 years, potentially compressing developer profitability by 8% to 17%. The broader Real Estate Development sector traded lower, with China Overseas down 3.02%, Longfor Group down 3.12%, China Res Land down 2.48%, CK Asset down 1.47%, and Henderson Land down 1.14%.

At the company level, SUNAC disclosed a quarterly update on September 24 confirming that mandatory convertible bonds totaling approximately US$2.53 billion have been fully converted into shares, and the group has repaid RMB 4.87 billion in debt. However, first-half results showed revenue of RMB 16.35 billion, a net loss of RMB 12.54 billion, and current borrowings of approximately RMB 148.44 billion, indicating significant near-term repayment pressure.

(The above content is based on publicly available market information, generated by a program or algorithm, and is intended solely as a stock movement alert. It does not constitute investment advice or a basis for trading decisions.)

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