Analysis of Sunac China (01918.HK), a Popular Hong Kong Stock

Sunac China (01918.HK) is a real estate development enterprise with a market capitalization of approximately HK$15.5 billion. As of 10:20 (GMT+8) on December 2, 2025, the stock price is HK$1.36 [1].

On November 5, 2025, all conditions for Sunac China’s offshore debt restructuring plan were met and took effect, approved by the High Court, resolving long-term debt pressure and boosting investor confidence [2].

Market rumors suggest that the government plans to introduce a new round of real estate support policies, including reducing transaction costs and mortgage subsidies, which will benefit development enterprises [1].

Today’s trading volume is 28.71 million shares, far below the average of 198 million shares, indicating that the upward trend is driven by short-term momentum rather than large-scale inflows of institutional funds [1]. Price range: Today HK$1.350-HK$1.370, 52-week HK$1.230-HK$3.290 [1].

The completion of debt restructuring and policy expectations have boosted industry optimism, but insufficient trading volume shows that investors are still in a wait-and-see attitude. The price-to-book ratio is 0.41x, leaving room for valuation repair, but it needs to be supported by performance improvement [0].

1. Impact of Debt Restructuring
   : Eliminated core debt risks, but the company’s financial position remains weak; a reversal requires substantial performance improvement [0][2].
2. Volume Signal
   : Today’s low trading volume indicates that the current upward trend lacks institutional fund support, and short-term momentum may be unsustainable [1].
3. Policy Dependency
   : The stock price rebound highly depends on the implementation effect of real estate support policies, with uncertainties [1].

• Valuation Repair
  : Price-to-book ratio of 0.41x; if financial conditions improve or there are policy benefits, there is room for valuation repair [0].
• Policy Dividends
  : If a new round of real estate support policies is implemented, it will directly benefit the company’s operations [1].

• Financial Risks
  : Net profit margin -39.42%, ROE -65.98%, current ratio 0.88, quick ratio 0.23; insufficient liquidity and weak profitability [0].
• Industry Risks
  : China’s real estate market still faces oversupply and regulatory pressure [1].
• Long-term Trend
  : The stock price has fallen by 95.39% cumulatively over the past 5 years, showing an obvious long-term downward trend [0][1].

Sunac China (01918.HK) has become a popular Hong Kong stock due to the completion of debt restructuring and policy expectations. The current stock price is HK$1.36, and today’s trading volume is far below the average. The company faces financial risks and industry pressures, but there are opportunities for valuation repair and policy benefits. Investors should pay attention to the 52-week support level of HK$1.230 and the short-term resistance level of HK$1.370.