Sunac China (01918) Becomes a Hot Hong Kong Stock: Analysis of Debt Restructuring Breakthroughs and Industry Policy Drivers

Sunac China Holdings Limited (01918) is a leading real estate developer in China, with core businesses covering residential development and property management [0]. On November 5, 2025, the company’s offshore debt restructuring plan was approved by the court, marking a key breakthrough in its financial relief process [1]. Although its 2025 revenue was approximately HK$199.9 billion, it still did not achieve profitability, and financial pressure persists [0].

At the policy level, China is preparing a new round of real estate stimulus measures, including mortgage subsidies, personal income tax rebates, and reduction of transaction costs, which has led to a collective rise in the mainland real estate stock sector [3]. Industry data shows that nearly half of listed real estate enterprises have shown signs of recovery in their first-half performance, and market expectations for industry recovery are rising [0].

In terms of stock price performance, Sunac China’s year-to-date increase reached 87.1%, with a 52-week range of HK$0.90-HK$5.51, and trading volume remained active, reflecting improved investor confidence in the company’s prospects [2]. In terms of land reserves, the company’s total land reserve reached 124 million square meters, of which about 70% is located in first and second-tier cities, with significant location advantages, and is expected to benefit first from urban recovery policies [0].

1. Debt Restructuring and Policy Resonance
   : The approval of the offshore debt plan and expectations of industry stimulus policies form a double positive, driving a significant rise in stock prices [1][3].
2. Industry Differentiation Trend
   : Real estate enterprises with layout in first and second-tier cities are more competitive in the recovery cycle, and Sunac’s land reserve advantage may become the core support for future performance growth [0][3].
3. Confidence Repair Exceeds Substantial Improvement
   : Although the stock price performance is strong, the company has not yet achieved profitability, financial repair still takes time, and market sentiment is more driven by short-term positive factors [0][2].

• Policy Dividend Window
  : If real estate cost reduction measures are implemented, short-term transaction volume is expected to increase, and the company’s land reserves can be converted into sales performance [3];
• Release of Location Advantages
  : Projects in first and second-tier cities have higher de-stocking rates and stronger price resilience, which is conducive to the improvement of the company’s cash flow [0].

• Financial Pressure Not Fully Alleviated
  : Debt restructuring has made progress, but the overall debt scale is still large, and interest expenditure pressure persists [0];
• Sustainability of Industry Recovery in Doubt
  : The short-term effect of policy stimulus may mask long-term supply and demand contradictions, and the stability of industry recovery remains to be seen [4];
• Profit Repair Lags
  : Although the revenue scale remains, the loss state has not been reversed, and the progress of profit improvement may be slower than market expectations [0].

Sunac China has become the focus of the Hong Kong stock market due to debt restructuring breakthroughs and industry policy expectations, with strong stock price performance. However, investors need to rationally view short-term positives and pay attention to the company’s profit repair progress, subsequent execution of debt resolution, and implementation effects of industry policies. The location advantage of first and second-tier layout is the company’s core competitiveness, but financial health is still a key consideration for long-term development [0][1][2][3][4].