Shares of mainland Chinese property developers are among the biggest decliners in Hong Kong trading on Thursday. Jianfa International Group (01908) fell 5.65% to HK$12.19, Greentown China (03900) dropped 2.64% to HK$6.095, and Sunac China (01918) declined 2.48% to HK$0.59 at the time of writing.

On August 28, multiple regulatory bodies including the Ministry of Housing and Urban-Rural Development, the People's Bank of China, and the National Financial Regulatory Administration jointly rolled out a sweeping package of new real estate policies. According to CSC Financial, the higher thresholds for presale approvals and the shift toward completed-property sales will lead to a temporary contraction in the supply of new homes available for sale, placing short-term strain on developers' cash flows.

Analysts note that under the new framework, asset turnover rates and internal rates of return (IRR) could potentially drop to one-quarter of previous levels, fueling concerns over developers' near-term profitability. CMB International believes the full implementation of these measures will tighten developer liquidity and extend capital recovery cycles from the current 3 to 6 months out to 6 to 12 months. This acceleration is expected to hasten the exit of undercapitalized smaller developers while pushing market share further toward state-owned enterprises. On the demand side, the reforms are seen reducing the risks of unfinished projects and delivery delays, which should help restore buyer confidence.

The bank characterizes this reform package as a critical move that "trades short-term pain for long-term industry health," signaling regulators' proactive stance in breaking the industry's vicious cycle.