Deutsche Bank maintains SouFun rating target of $11

Beijing time July 24 Evening News, Deutsche Bank issued an investment report today to maintain SouFun stock (Nyse:sfun) "Hold" rating, while maintaining the target of 11 U.S. dollars unchanged.

The following is a summary of the contents of the report:

Restriction policy relaxation: In the past few weeks, we have noticed some positive phenomena in China's real estate market, which may promote the growth of trading volume; 1. Haikou suspended the policy of real estate restriction, no longer require housing number of proof. So far, in 44 cities that have introduced real estate restriction policies, 20 cities have withdrawn. 2 in the first three weeks of July, trading volumes rebounded in 40 major cities.

The mortgage is still tightly controlled: Our data show that the first-tier city's control of the mortgage is still strict. Still, we've seen some positive changes: 1 in Beijing, two commercial banks started offering 10% interest rates on mortgages for specific homebuyers. 2 in Shanghai, several banks, including ICBC, have accelerated the pace of approval for mortgage applications.

Promote the growth of house-search card business: We expect that with the rebound in real estate transactions, the search Room card business will also grow. But at the same time, this will be partly offset by lower take rate. As for the listing Service, we believe its negative impact will be delayed until the second half of the year as the 40% price reduction policy is likely to last longer.

Valuation: We continue to maintain the SouFun stock "hold" rating while maintaining a 11 dollar target share price unchanged. (Li Ming)