On September 1, CHINA OVERSEAS fell 3.11% in regular trading, trading at HK$12.17/share, with turnover of HK$200 million. The decline extends a broad selloff in the property sector following sweeping housing policy reforms.

On August 28, multiple government departments including the Ministry of Housing, the PBOC, and financial regulators jointly issued landmark policies mandating a transition toward current-property sales for new projects, replacing the longstanding pre-sale system. The reform introduces project-based financing, principal bank oversight, and closed-loop fund management across the full development cycle. Analysts note the policy will pressure developers' cash flow in the near term, as sales proceeds will be delayed and capital requirements during construction increase significantly, fundamentally reshaping the high-leverage, high-turnover business model.

The Real Estate Development sector saw broad weakness, with C&D INTL GROUP down 4.26%, CHINA RES LAND down 3.39%, SINO LAND down 2.03%, HENDERSON LAND down 1.71%, and CK ASSET down 1.02%. Multiple brokerages acknowledged short-term valuation pressure on developers but noted that well-capitalized firms with low net gearing and strong product capabilities are better positioned to navigate the transition.

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