1. Report Industry Investment Rating - No information provided about the industry investment rating in the given content 2. Core View of the Report - The bond market has recovered, and credit has followed the decline in interest rates. The credit spreads in the 3 - 7Y period have all converged. The yields of various - term credit bonds have also significantly declined, and the credit spreads of different - term and - grade bonds have shown different changes [3][10] - The spreads of urban investment bonds have generally decreased by 2BP, with spreads of different - rated and - level platforms showing varying degrees of decline [4][15][19] - The spreads of real - estate bonds have generally continued to widen, but the spread of Vanke has been significantly compressed. The spreads of other industrial bonds have slightly declined [4][25] - The yields of secondary - tier and perpetual bonds have continued to decline, with the largest decline in spreads in the 3Y period [5][33] - The excess spreads of industrial perpetual bonds have widened, while the excess spreads of urban investment perpetual bonds have shown differentiation [5][36] 3. Summary According to Relevant Catalogs 3.1 Bond Market and Credit Spreads Convergence - This week, the bond market recovered, and the interest - rate curve steeply declined. The yields of 1Y, 3Y, 5Y, 7Y, and 10Y CDB bonds decreased by 2BP, 1BP, 2BP, 3BP, and 4BP respectively. The yields of various - term credit bonds also dropped significantly. From the perspective of credit spreads, the 3 - 7Y credit spreads all narrowed [3][10] 3.2 Urban Investment Bond Spreads - The spreads of urban investment bonds decreased by 2BP overall. The credit spreads of external - rated AAA, AA +, and AA platforms all decreased by 2BP compared to last week. By administrative level, the credit spreads of provincial, municipal, and district - county platforms decreased by 2BP compared to last week [4][15][19] 3.3 Real - Estate and Other Industrial Bond Spreads - The spreads of real - estate bonds continued to widen overall, but the spread of Vanke was greatly compressed. The spreads of other industrial bonds slightly declined. The spreads of central - state - owned real - estate bonds widened by 4BP, state - owned real - estate bonds by 1BP, private real - estate bonds by 17BP, and mixed - ownership real - estate bonds converged by 103BP [4][25] 3.4 Secondary - Tier and Perpetual Bond Yields and Spreads - This week, the yields of secondary - tier and perpetual bonds continued to decline, with the largest decline in spreads in the 3Y period. The yields of different - grade 1Y secondary - tier capital bonds decreased by 1 - 2BP, and perpetual bonds by 2BP; 3Y secondary - tier capital bonds by 3BP, and perpetual bonds by 4BP; 5Y secondary - tier capital bonds by 2 - 4BP, and perpetual bonds by 1 - 2BP; 10Y secondary - tier capital bonds by 5BP, and perpetual bonds by 4BP [5][33] 3.5 Excess Spreads of Industrial and Urban Investment Perpetual Bonds - This week, the excess spread of 3Y industrial AAA - grade perpetual bonds widened by 0.26BP to 14.67BP, and the 5Y by 0.01BP to 13.21BP. The 3Y urban - investment AAA - grade perpetual - bond excess spread decreased by 0.48BP to 4.03BP, and the 5Y increased by 3.21BP to 13.34BP [5][36] 3.6 Credit Spread Database Compilation Instructions - The overall market credit spreads, commercial - bank secondary - tier spreads, and urban - investment/industrial perpetual - bond credit spreads are based on ChinaBond medium - and short - term note and ChinaBond perpetual - bond data. The historical quantiles are since the beginning of 2015. The credit spreads related to urban - investment and industrial bonds are compiled and statistically analyzed by the Huafu Securities Research Institute, and the historical quantiles are also since the beginning of 2015 [38][40]

Group 1 - The core viewpoint of the news highlights a positive trend in the Hong Kong real estate sector, with most property stocks experiencing gains, indicating a recovery in the market [1] - The Minister of Housing and Urban-Rural Development, Ni Hong, emphasized three key areas for urban renewal this year: the renovation of old urban communities, the promotion of complete community construction, and the transformation of small public spaces in cities [1] - The government aims to stabilize the real estate market by implementing targeted policies and supporting reasonable financing needs of property companies, as well as addressing the housing demands of residents [1] Group 2 - In the secondary housing market, major cities are showing signs of recovery, with first-tier and strong second-tier cities experiencing increased activity [1] - Data from monitoring agencies indicate that the transaction volume in Beijing, Shanghai, and Shenzhen is improving, with Shanghai's second-hand housing listings decreasing for nine consecutive months, leading to a more balanced supply-demand relationship [1]

Group 1 - The core viewpoint of the news highlights a positive trend in the Hong Kong real estate stocks, with several companies experiencing significant gains, indicating a recovery in the market [1] - The Minister of Housing and Urban-Rural Development, Ni Hong, emphasized three key areas for urban renewal this year: the renovation of old urban communities, the promotion of complete community construction, and the transformation of small public spaces [1] - The government aims to stabilize the real estate market by implementing targeted policies and supporting reasonable financing needs of real estate companies, as well as addressing the housing demands of residents [1] Group 2 - In the secondary housing market, major cities like Beijing, Shanghai, and Shenzhen are showing signs of recovery, with a notable decrease in the number of listings in Shanghai for nine consecutive months, leading to a more balanced supply-demand relationship [1] - Specific stock performance includes China Jinmao rising by 4.4%, Greentown China by 4%, Zhongliang Holdings by over 3%, and New City Development by 1.8%, among others, indicating a general upward trend in the sector [2]

Investment Rating - The report maintains an "Overweight" rating for the real estate industry [2] Core Views - The report highlights a rebound in sales on a month-on-month basis, supported by policies aimed at improving housing conditions for residents [7] - The overall market performance is weak, with the Shenwan Real Estate Index declining by 3.52% compared to a 0.57% drop in the CSI 300 Index, resulting in a relative return of -2.95% [4][12] - The report emphasizes the importance of financially stable real estate companies, suggesting a focus on leading firms that can effectively navigate market fluctuations [7] Summary by Sections Weekly Market Review - The Shenwan Real Estate Index decreased by 3.52%, while the CSI 300 Index fell by 0.57%, indicating underperformance of the sector relative to the broader market [4][12] Industry Fundamentals - For the week of January 9-15, 2026, the total number of new homes sold in 38 key cities was 21,770 units, reflecting a year-on-year decline of 14.7% but a month-on-month increase of 12.4%. The total area sold was 201.4 million square meters, down 25.3% year-on-year but up 12.8% month-on-month [5][22] - In the same week, the total number of second-hand homes sold in 16 key cities was 18,991 units, with a year-on-year decline of 11.5% and a month-on-month increase of 17.2%. The total area sold was 188 million square meters, down 11.6% year-on-year but up 18.3% month-on-month [5][40] Land Market Analysis - During the week of January 5-11, 2026, land supply was 2,198.8 million square meters, a year-on-year decrease of 2.6%, with an average supply price of 858 yuan per square meter, down 42% year-on-year. Land transactions totaled 1,503.1 million square meters, down 41.4% year-on-year, with a transaction value of 18.91 billion yuan, down 49.5% year-on-year [6] Investment Recommendations - The report suggests focusing on financially sound leading real estate companies such as Yuexiu Property, China Merchants Shekou, Poly Developments, and others, which are expected to perform well in the current policy environment [7]

Group 1 - The core viewpoint of the articles highlights a significant rebound in Hong Kong's property stocks, driven by recent financial measures from mainland China aimed at stabilizing the real estate market [1] - Notable stock performances include Greentown China rising nearly 6%, Jianfa International Group up nearly 5%, and China Overseas Hong Kong Group increasing by 4.4% [2] - Recent financial measures include a 25 basis point reduction in the People's Bank of China's re-lending rate and a decrease in the minimum down payment ratio for commercial real estate from 50% to 30% [1] Group 2 - Shenwan Hongyuan believes that the fundamentals of China's real estate sector have undergone a deep adjustment, with a positive shift in policy expectations following central government directives to stabilize the market [1] - Ping An Securities forecasts a narrowing decline in the housing market by 2025, with signs of recovery expected by 2026, emphasizing that quality properties will be key to boosting new home sales [1]

Investment Rating - The report maintains a "Positive" rating for the real estate sector, focusing on high-quality real estate companies and commercial real estate [3][4][21]. Core Insights - The investment side of the real estate sector remains weak, with a year-on-year decline of 17.2% in total real estate development investment for 2025, and a significant drop of 35.8% in December alone [4][21]. - The sales side shows a narrowing decline in sales area, with a year-on-year decrease of 8.7% for 2025, and a 15.6% drop in December [22][32]. - The funding side indicates a continued decline in funding sources, with a 13.4% year-on-year decrease in total funding for real estate development in 2025, and a sharp 26.7% drop in December [37]. Summary by Sections Investment Side - Total real estate development investment for 2025 reached 828.8 billion yuan, down 17.2% year-on-year, with December's investment declining by 35.8% [4][21]. - New construction area decreased by 20.4% year-on-year, with December showing a 19.4% decline [20][21]. - The report adjusts 2026 forecasts, predicting a 7.7% decline in new construction and a 9.1% drop in investment [21]. Sales Side - The total sales area for 2025 was 880 million square meters, down 8.7% year-on-year, with December's sales area declining by 15.6% [22][32]. - The total sales revenue for 2025 was 8.4 trillion yuan, reflecting a 12.6% year-on-year decrease, with December's sales revenue down 23.6% [24][32]. - The average selling price of commercial housing for 2025 was 9,527 yuan per square meter, down 4.3% year-on-year [31][32]. Funding Side - Total funding sources for real estate development in 2025 amounted to 9.3 trillion yuan, a decrease of 13.4% year-on-year, with December's funding sources down 26.7% [37]. - Domestic loans saw a year-on-year decline of 7.3%, with a significant drop of 45% in December [37]. - The report anticipates that funding sources will gradually improve due to ongoing policy relaxations [37].

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Insights - The real estate market has shown a significant decline in sales, with a year-on-year decrease in sales area of 8.7% and sales amount down by 12.6% for the year 2025 [4][13] - The trend of "price for volume" is evident, with the average selling price of commercial housing dropping by 4.3% year-on-year [4][13] - New construction area has decreased for four consecutive years, with a decline of 20.4% in 2025 [5][20] - The total investment in real estate development has also seen a significant drop of 17.2% year-on-year [6][24] - The cash flow pressure on real estate companies remains high, with a 13.4% year-on-year decrease in funds available to developers [6][26] Summary by Sections Sales Data - In 2025, the total sales area of commercial housing was 881 million square meters, with a year-on-year decline of 8.7% [4][13] - The sales amount reached 8.39 trillion yuan, down 12.6% year-on-year [4][13] - December 2025 saw a sharp decline in sales area and amount, with year-on-year decreases of 15.6% and 23.6%, respectively [4][13] Construction Data - The new construction area for 2025 was 588 million square meters, reflecting a 20.4% decrease [5][20] - The completion area was 603 million square meters, down 18.1% year-on-year [5][20] Investment Data - Real estate development investment totaled 8.28 trillion yuan in 2025, a decrease of 17.2% [6][24] - The funds available to real estate developers were 9.31 trillion yuan, down 13.4% year-on-year [6][26] Investment Recommendations - Recommended companies include those with strong credit and good urban fundamentals, such as Greentown China, China Overseas Development, and China Resources Land [7][34] - Companies benefiting from both residential and commercial real estate recovery are also highlighted, such as Longfor Group and New City Holdings [7][34] - Quality property management firms with strong service standards are recommended, including China Resources Mixc Life and Greentown Service [7][34]

Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Insights - The report highlights a significant reduction in the minimum down payment ratio for commercial property loans to 30%, aimed at stimulating the commercial real estate market and facilitating inventory reduction [5][6] - The current inventory of commercial properties is high, with 141 million square meters of commercial space available for sale as of November 2025, including 52 million square meters of office space [6] - The report anticipates further policy easing to support the commercial real estate sector, as the current measures may have limited impact due to existing disadvantages in loan terms compared to residential mortgages [7][8] Summary by Sections Market Trends - The report indicates a downward trend in the commercial real estate market, with rising vacancy rates and declining rental prices [7] Policy Changes - The People's Bank of China has introduced measures to lower the down payment ratio for commercial property loans, which is expected to ease initial funding pressures for buyers [5][8] Investment Recommendations - Recommended stocks include: 1. Companies benefiting from both residential and commercial real estate recovery: China Resources Land, New World Development, Longfor Group [8] 2. Firms with strong credit profiles and good understanding of customer demand: Greentown China, China Merchants Shekou, China Overseas Land & Investment [8] 3. High-quality property management companies under the "Good House, Good Service" policy: China Resources Mixc Lifestyle, Greentown Service, Poly Property [8]

Core Insights - The real estate industry is rapidly exploring new development models, with top 100 real estate companies showing strong enthusiasm for the construction agency market, leading to further industry growth and a new competitive landscape [1] - The focus has shifted from a "scale competition" to a "value competition," with companies emphasizing the creation of "Four Good" residences, urban renewal, and revitalization of existing assets [1] Group 1: Market Trends - In 2025, the new scale of construction agency contracts reversed the slowdown seen in 2024, with the top 20 companies signing contracts for 22,007 million square meters, a year-on-year increase of 16%, and a growth rate improvement of 6 percentage points compared to 2024 [2] - The competitive structure of the construction agency market has fundamentally changed, showing an "olive-shaped" competition structure typical of a mature industry with high concentration [2] - Over 100 companies have entered the construction agency business, primarily from the top real estate sales companies, indicating a highly competitive environment [3] Group 2: Pricing and Competition - The management fee rates for construction agency projects have decreased from an early average of 3% to a range of 1% to 3%, with 81.7% of projects falling within this range [4] - Industry leaders are advocating for a shift from price competition to value competition, recognizing that value creation is the core logic of the construction agency business [5] - New entrants are also consciously maintaining price floors, with some companies stating they will not participate in price competition, focusing instead on quality service [5] Group 3: Differentiation and Value Creation - Companies are actively pursuing differentiation by enhancing their capabilities and creating value through various initiatives, such as urban renewal and revitalization of existing assets [7] - Successful examples include the Chengdu Xijingtai project, which achieved over 90% sales in a previously stalled project, demonstrating effective cost control and implementation efficiency [8] - The industry is encouraged to focus on service capability and management efficiency rather than merely pursuing scale growth, with recommendations for both large and small companies to develop competitive advantages in niche markets [9]

Core Insights - Longfor Group's Longfor Intelligent Manufacturing is set to add over 13 million square meters of new area by 2025, with annual sales exceeding 20 billion, ranking among the top three in the industry [1][4] - The year 2025 marks a pivotal turning point for the real estate industry, driven by both policy and market dynamics, as the entire sector seeks new growth points [1] - The construction industry is being rapidly reshaped through digital technologies such as BIM, AI, and IoT, showcasing disruptive potential in the entire process from planning to delivery [1][3] Group 1: Business Performance - Longfor Intelligent Manufacturing's construction area expanded by over 13 million square meters in 2025, achieving a top 6 ranking in new contract scale for the year [4] - The company has accumulated over 270 construction projects, totaling more than 38 million square meters, with sales from construction projects reaching 20.6 billion [4][8] - Notable projects include Guangzhou Central Jing Song, which achieved over 3 billion in sales, and several others that topped sales rankings in their respective cities [4][6] Group 2: Strategic Focus - Longfor Intelligent Manufacturing focuses on three main lines: research and strategy, construction management, and refined craftsmanship, enhancing its service capabilities across the entire project lifecycle [3][4] - The competitive landscape in the construction industry is shifting from a "blue ocean" to a "red ocean," necessitating a focus on digital technology as a foundational element [3][4] Group 3: Delivery and Quality - In 2025, Longfor Intelligent Manufacturing delivered over 2.9 million square meters of residential space, fulfilling its commitment to value across the entire project lifecycle [4][8] - The company emphasizes quality and efficiency, with projects like Xian's first construction project achieving delivery 130 days ahead of schedule, earning high praise from stakeholders [8][12] Group 4: Innovation and Collaboration - Longfor Intelligent Manufacturing has established partnerships with various organizations, including state-owned enterprises and universities, to enhance its operational capabilities [15] - The company is pioneering in urban renewal, utilizing a "virtual construction + prefabricated EPC" model to innovate in project delivery and efficiency [15][18] Group 5: Market Position and Future Outlook - Longfor Intelligent Manufacturing ranks among the top three in sales scale and fourth in delivery scale for 2025, contributing significantly to the high-quality development of the real estate sector [8] - The company aims to redefine urban construction boundaries and provide replicable experiences for the industry through its practices [20]