The property market.

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(Economic Observation) Why is China's real estate stock price "falling down" when the house sells well?　

　　China News Service, Beijing, March 9th (Reporter Pang Wuji) After the surge on February 25, China's real estate sector showed a continuous correction trend.

　　According to data from Oriental Fortune.com, as of the close of the market on the 9th, the real estate sector fell 1.46% on that day.

Among the 135 real estate stocks, 104 stocks fell.

Among them, Meihao Land's decline was the highest, reaching 10.17%, while individual stocks such as Yunnan Chengtou, China Fortune Land Development, and Jiakai City fell more than 4%.

　　In fact, on February 25, real estate stocks rose sharply.

Take the above real estate index as an example. The index reached 6665 points on that day, the highest point since December 7, 2020.

But the next day (February 26), real estate stocks plummeted.

This downward trend has not stopped.

Data show that as of March 9, the Shanghai Property Index in March showed a continued downward trend. The Shanghai Property Index on March 9 was 6,297 points, which has basically fallen back to the level of February 24.

　　However, during the same period, major real estate companies have performed well, and many companies have a good start.

In February, China's real estate transactions were "not weak in the off-season", and sales data in many places were significantly better than the same period and better than expected.

The operating performance of real estate companies is rising.

According to the real estate sales rankings for January-February 2021 released by the Crane Research Center, the top 100 real estate companies achieved a total of 1,853.3 billion yuan in sales from January to February, a year-on-year increase of 105%.

　　The year-on-year sales growth rates of the two leading real estate companies, Vanke and Country Garden, exceeded 40% and 60% respectively in January and February this year.

　　The house sells well, why is the real estate stock price "falling endlessly"?

　　On the 9th, the E-House Real Estate Research Institute and the Market Value Management Research Center of the Shanghai Academy of Social Sciences released the "Research on the Market Value Management of Listed Real Estate Companies" report that the recent trend of real estate stocks and the operating conditions of real estate companies have deviated, which is worthy of industry attention.

　　The report believes that this deviation means that the operating data of real estate companies cannot be transmitted to the stock price and market value, which may interfere with the judgment of external investors on the value of corporate investment.

Therefore, on the basis of stable operation, actively managing market value should become one of the important tasks of real estate enterprises.

　　Zhang Yongyue, dean of the E-House Real Estate Research Institute and a tenured professor at East China Normal University, said that from a practical point of view, market value management is in place, which will help the healthy development of good companies and good stocks.

At present, China's real estate industry is entering the post-development era. There have been many new changes in the external environment and internal business environment, which have brought many new problems and challenges to real estate companies, especially listed real estate companies.

The current market value management system of listed real estate companies is not yet complete, which has affected the daily management and strategic arrangements of companies.

He suggested that relevant assessments and quantitative analysis should be actively formed to promote the better development of listed real estate companies.

　　Mao Yongchun, executive director of the Market Value Management Research Center of the Shanghai Academy of Social Sciences and chairman of Shanghai Rongke Investment Management Co., Ltd., stated that market value management performance should be included in the evaluation system.

If market value management is not included in the company's strategy, is not an important work content of the board of directors, or is not included in the assessment, market value management is just a concept and impulse work.

　　In addition, Cui Guangcan, a professor at the Business School of Shanghai Normal University, believes that the relationship between the market value of listed real estate companies in China and the fundamentals of corporate development should be actively studied, and an objective and scientific evaluation system should be established. The relationship between operating income, the nature of major shareholders, and the value added of the company.

Through the construction of multi-level indicators, establish an indicator system in which the market value and company value grow together, and the premium level develops in harmony.

Through such research, we will truly find the direction to improve the market value management level of China's listed real estate companies.

(Finish)