Shenzhen Properties & Resources Development Group Ltd

In early trading today, major A-share indices diverged. At the midday break, the Shanghai Composite Index stood at 3,840.83 points, up 0.27%, while the Shenzhen Component Index fell 0.06%, the ChiNext Index slipped 0.17%, and the SSE STAR Composite Index dropped 1.38%. Shenzhen Properties A, which had posted two consecutive limit-ups, opened sharply lower and touched the daily limit-down. Around 10:17 a.m., the limit-down board was opened on heavy volume, and within less than half an hour before midday, the stock swung from a 7% decline to the limit-up, staging an intraday limit-down to limit-up reversal. By midday, the limit-up order book exceeded 120,000 lots, with half-day turnover of 763 million yuan and a latest market value of 7.295 billion yuan. Last night, the company disclosed an unusual movement announcement stating there was no material information that should have been disclosed but had not been, and cautioned that its latest price-to-earnings ratio of 177.99 times was significantly higher than the real estate industry's static price-to-earnings ratio of 12.3 times. Innovative drug stocks gained strength in the morning. CanSino Biologics hit the 20% limit-up about six minutes after the open, with a midday order book exceeding 48,000 lots, half-day turnover of 1.02 billion yuan, and a latest market value of 25.4 billion yuan. Trinomab Biotech, Chenkang Pharmaceutical, and Aosaikang Pharmaceutical also touched their daily limit-ups. On the news front, the Ministry of Industry and Information Technology and nine other departments recently released the 15th Five-Year Plan for the development of the pharmaceutical industry, proposing ten expected indicators by 2030, including operating revenue of pharmaceutical industrial enterprises above designated size exceeding 3.5 trillion yuan, first-in-class innovative drugs accounting for more than 25% of the global total, an average annual growth rate of the innovative drug industry exceeding 20%, and 20 pharmaceutical industry parks at the 100-billion-yuan level. Guosheng Securities said in a research note that from January to August 2026, the total value of China's pharmaceutical out-licensing deals reached 112.857 billion US dollars, already surpassing the 56.676 billion US dollars for all of 2024 and reaching 79% of the full-year 2025 total.

In early trading on September 30, the real estate sector opened lower and pulled back. Shenzhen Properties A, 5i5j, World Union, and Vanke A briefly hit limit-down. Vanke A touched limit-down just three minutes after the open, then quickly rebounded into positive territory, closing the morning session up 3.92%. Vanke A has been strong recently, notching three limit-up boards in seven trading days since September 18 and appearing on the Dragon and Tiger list four times. On the evening of September 22, Vanke A said in an announcement on abnormal stock trading that the company had noted active trading in listed real estate companies recently, and that after self-inspection, as of September 22, neither the company nor its largest shareholder had any material matters that should have been disclosed but were not. On September 29, the Ministry of Finance, the People's Bank of China, and the National Financial Regulatory Administration jointly issued the Notice on Implementing the Resident Home Purchase Loan Interest Subsidy Policy, making clear that the policy would be implemented nationwide from October 1, with a provisional implementation period of one year. Zheshang Securities believes that this is the first time the central government has directly subsidized residents' mortgage interest, meaning real estate policy has moved from monetary easing into an era of fiscal interest subsidies, which is highly significant.