China's real estate stocks soar in favor of red chips

China's main real estate stocks rose significantly this morning, North Star Industrial (00588-HK) is now a 8.5% rise in the lead, the first home purchase (02868-HK), Shimao Real Estate (00813-HK) and Shanghai Forte (02337-HK) also joined hands up more than 5%, Greentown China (03900-HK)　　Franshion Real Estate (00817-HK) and Ocean Real Estate (03377-HK) also rose nearly 5%, decimating real Estate (02777-HK) up 3.8%, China's overseas development (00688-HK) and Huarun Land (01109-HK) rose more than 1%. Wanguo published a new study, said that the strength of Chinese property stocks in June sales will not change the confidence of investors more consolidated, and the seller of profit and net asset value forecast of the rise also continues. As a result, July maintained a bullish outlook on real estate stocks unchanged, the off-season sales will be the largest catalyst this month, and the price of land prices, the continued warming will promote risk appetite further upward.　　Real estate shares are still on the road, but bull sentiment will undoubtedly weaken the negative impact. Stock options, Wanguo refers to red chips is still its preference, in the two or three-line stock experience after a substantial rebound, the current valuation gap between the two further narrowing. Among them, China and overseas, China Resources land has not been significantly contracted in the 2008 years, sufficient supply will ensure follow-up sales and longer period of profit visibility; The Beijing Land Reserve of Sino-ocean Real Estate is still the bank's fancy, and its 07 purchase of two pieces of Hangzhou land is expected to be further revalued. Franshion Property acquisition of the Canton Canal Gate 15th, although not cheap, but further show that the company is determined to become the first-tier city property investors determination, from a strategic point of view should add points. In addition, Wanguo also believe that the two or three-line stock still has the opportunity, the main line of investment based on regional choice, more optimistic about the Yangtze River Delta market, so recommended Shanghai Forte, Shimao Real estate and Greentown China.