The property market index regains momentum

In the four weeks ending May 20, 2018, there were 16 stocks on the list of shares in the “Whicks’s Popular Stocks List”, which decreased by two compared to the previous week. This week, Tencent (00700) continued to occupy the top position in popularity. The number of reports was 66, which was slightly higher than the previous week. It is worth noting that, although Tencent has been ranked in the top spot for 12 consecutive weeks, the stock analysts are not very optimistic about its prospects, because it is recommended that only 38% of the buy rating is the lowest among all the listed companies.

Tencent’s recommendation to buy a low percentage of shares

Of course, not optimistic about the prospects for the time being does not necessarily mean that we have been bearish. In fact, the stock reviewer’s proportion of Tencent’s neutral rating is as high as 55%, that is, only about 10% of stock reviewers recommend that the stock be sold out. From another perspective, perhaps the recent market conditions are repeated and there is no clear direction. The stock reviewers have become conservative about the short-term view of heavy blue chip stocks Tencent.

Relatively to the stock market, the property market has been extremely hot recently. The second-hand property price index has repeatedly hit record highs. Does the news big data also reflect this phenomenon? The latest “Newsletter Business Climate Index” compiled from news big data shows that the index has started to bottom out since September last year, and hit a record high of 2.21 points in late January. (Note: The index has risen, indicating that the housing market is in a hot atmosphere. Excitement, in turn, pessimistic.) Although the index was slightly softer afterwards, it has picked up again in recent days, reflecting that the housing market is indeed very hot. As analyzed in this column at the beginning of this year, as the property market sentiment index is closely related to the year-on-year changes in second-hand property prices, it means that there is an opportunity for new property prices to be used in the short-term.