China is prepared to build more low-cost housing over the next five years. This has prompted some developers to start cutting home prices, as affordable public housing is set to out-do the private sector.
Meanwhile, Xinyi Glass (868) has already reached its record high this week to meet the demand for more glass. Changsha Zoomlion Heavy Industry Science and Technology Development (1157) is another company to watch, as it is a sector leader in construction machinery and building supplies.
The company was listed at HK$14.98 in December, when the market climate was unfavourable. When demand increased, it saw a high of HK$20 last month, now trading at HK$19.06.