Core Viewpoint - The acquisition of Huaren Network Shenzhen and Huawan Data Technology Guangzhou by a wholly-owned subsidiary of China Resources is expected to enhance the group's data resources and platform capabilities, fostering innovation and growth in the membership program [1][2]. Group 1: Acquisition Details - China Resources announced the signing of a share transfer agreement for Huaren Network Shenzhen and Huawan Data Technology Guangzhou on June 30, 2025, following a public listing process at the Shanghai Property Exchange [1]. - Before the acquisition, Huaren Network Shenzhen and Huawan Data Technology Guangzhou were wholly owned by the seller, a direct wholly-owned subsidiary of China Resources [1]. - Post-acquisition, both companies will become indirect wholly-owned subsidiaries of China Resources [1]. Group 2: Business Operations - Huaren Network Shenzhen, established in 2016, has a registered capital of RMB 470 million and is a key operating subsidiary of the seller, focusing on membership operations, online mall business, and technology data value-added services [1]. - Huawan Data Technology Guangzhou, founded in 2020 with a registered capital of RMB 30 million, provides backend support services for membership operations [1][2]. - The board believes that the acquisition will create synergies with the group's membership program, reinforcing the integrated "2+1" business model and positioning the membership program as a significant driver of profit growth [2].

Investment Rating - The report maintains a "Positive" rating for the real estate and property management sectors [4][31]. Core Insights - The real estate market is showing signs of recovery with a week-on-week increase in both new and second-hand property transactions, indicating a potential stabilization in the market [4][31]. - The report emphasizes the need for continued policy support to enhance market conditions, particularly in light of the ongoing inventory reduction trends [4][31]. Industry Data Summary New Housing Transactions - In the week of June 21-27, 2025, 34 key cities recorded a total new housing transaction volume of 3.792 million square meters, representing a week-on-week increase of 51.1% [5][8]. - Year-on-year, new housing transactions in June decreased by 13%, with first and second-tier cities seeing a decline of 11% and third and fourth-tier cities experiencing a 26% drop [8][9]. Second-Hand Housing Transactions - For the same week, second-hand housing transactions in 13 cities remained stable with a slight increase of 0.5%, while the cumulative transaction volume for June showed a year-on-year decrease of 5% [13][22]. Inventory and Supply - In the week of June 21-27, 2025, 15 cities launched 1.82 million square meters of new housing, with a sales-to-launch ratio of 0.85, indicating ongoing inventory management challenges [22][31]. - The total available housing inventory in these cities was 89.79 million square meters, reflecting a week-on-week increase of 0.3% [22][31]. Policy and News Tracking - The report highlights key policy developments aimed at stabilizing the real estate market, including measures to support first-time homebuyers and families with multiple children [31][34]. - Recent statements from government officials indicate a commitment to expanding domestic demand and enhancing consumer confidence in the real estate sector [31][34].

Investment Rating - The report indicates a positive outlook for the real estate sector, suggesting a potential recovery in the market with a recommendation to accumulate real estate stocks on dips [6]. Core Insights - The A-share real estate sector saw a weekly increase of +3.1%, ranking 17th among all sectors, while the Hong Kong real estate sector increased by +3.9%, ranking 4th [3][19]. - The land market's premium rate has rebounded, with an average premium rate of 9% for the week ending June 27, 2025, despite a year-on-year decrease in land transaction volume [3][30]. - New housing sales in 47 cities totaled 523 million square meters, reflecting a week-on-week increase of +39% but a year-on-year decrease of -14% [4][35]. - Guangzhou is promoting prefabricated buildings, mandating that 100% of residential land sold from 2026 onwards will implement this construction method, which may transform the real estate and construction industries [6][17]. Summary by Sections Real Estate Market Overview - The report highlights a recovery in the real estate market, with significant increases in both new and second-hand housing transactions across various city tiers [4][43]. - The premium rates for land transactions have shown signs of recovery, indicating a potential stabilization in the market [3][30]. Land Transactions - In the week of June 21-27, 2025, 923 million square meters of residential land were transacted across 300 cities, with a year-on-year decrease of -33% [30]. - The top five companies in terms of land acquisition amount are Poly Developments, Greentown China, China Overseas Development, Jianfa Real Estate, and Binjiang Group, with acquisition amounts of 414 billion, 395 billion, 386 billion, 329 billion, and 313 billion respectively [30][31]. New Housing Sales - New housing sales in 47 cities reached 523 million square meters, with a week-on-week increase of +39% and a year-on-year decrease of -14% [4][35]. - The performance varied by city tier, with first-tier cities showing a week-on-week increase of +81% [4][35]. Second-Hand Housing Sales - Second-hand housing transactions totaled 264 million square meters in 22 cities, with a week-on-week increase of +1% and a year-on-year decrease of -2% [43][44]. - First-tier cities experienced a week-on-week increase of +2%, while second-tier cities saw a +1% increase [43][44]. Policy and Market Trends - The report emphasizes the importance of government policies in supporting the real estate market, particularly in Shanghai, where the release of quality land parcels is seen as a positive signal for market recovery [5][13]. - The promotion of prefabricated buildings in Guangzhou is expected to enhance construction efficiency and sustainability, potentially benefiting developers who adopt these practices [6][17].

Group 1 - Vipshop's marketing vice president is under investigation for corruption, revealing internal control vulnerabilities in a company valued at hundreds of billions. The company reported a net profit of $260 million in Q1 2025, a 17% year-on-year decline [2] - LVMH confirmed the opening of a 40,000 square foot flagship store in Hong Kong's K11 Musea in 2026, utilizing a "base rent + revenue share" model, reflecting a shift in commercial real estate strategies [3] - Fanatics opened its first store in Guangzhou, focusing on star card blind box sales with a price range of 300-2000 yuan, and plans to expand into major Chinese cities by 2026 [4] Group 2 - Fornasetti's parent company sold 60% of its stake to private equity firm Oakley, signaling an acceleration of its market presence in the Asia-Pacific region [5] - Laopuhuang, known for traditional gold craftsmanship, opened its first store in Singapore, reporting revenue of 8.5 billion yuan in 2024, a 167% year-on-year increase, and plans to establish four more stores in Southeast Asia by 2026 [6] - Arc'teryx signed Chinese climbing champion Pan Yufei, launching a "champion edition" climbing gear series that sold out within 48 hours [8] Group 3 - Strava completed a new funding round led by Sequoia, achieving a valuation of $2.2 billion with 150 million global users, and aims for $500 million in annual revenue by 2025 [9] - Kering appointed former Renault CEO Luca de Meo as its new CEO, marking the first leadership change in 20 years, with the stock price rising by 11.76% following the announcement [10] - Leonard Lauder, honorary chairman of Estée Lauder, passed away at 92, having significantly grown the company during his tenure [11]

Investment Rating - The report maintains a recommendation for the real estate sector, indicating that the sector has entered an investment range with a price-to-book (PB) ratio of approximately 1.0 times, reflecting concerns about the impact of current sales on business models [2][38]. Core Insights - The real estate market is experiencing a low-level oscillation in sales, with a year-on-year decline in new housing sales area of -3.3% in May, indicating continued pressure on sales due to weak inventory and new supply trends [14][15]. - The report highlights that the funding chain index for real estate has declined, remaining at historically low levels, but anticipates potential improvements in the financial situation of some companies as supply and demand policies gradually take effect [2][10]. - The report suggests that the decline in mortgage rates may help stabilize total demand for new and second-hand homes, with a focus on the new housing market showing earlier signs of marginal improvement compared to the second-hand market [38]. Summary by Sections Sales Data - In May, the adjusted year-on-year growth rate for sales area was -3.3%, with a total sales area of 35.3 million square meters, reflecting a continued low market heat [14][15]. - The cumulative sales amount from January to May was 3.4 trillion yuan, with a year-on-year decline of -3.8% [10][15]. Construction Data - The new construction area in May saw a year-on-year decline of -19.3%, indicating a tightening balance in new construction under the current market conditions [39][40]. - The report maintains that the completion rate will likely remain low until the second half of 2026, with a May completion area decline of -19.5% year-on-year [39][40]. Investment Trends - Real estate development investment in May showed a year-on-year decline of -12.0%, reflecting a synchronized drop in construction area and ongoing inventory reduction efforts by developers [2][39]. - The report emphasizes the importance of focusing on companies with stable cash flow generation capabilities and those that can navigate the current market challenges effectively [38].

Investment Rating - The report indicates a cautious investment outlook for the real estate sector, suggesting that the current data is at a bottoming phase and that further policy measures may be necessary to stabilize the market [7]. Core Insights - The A-share real estate sector experienced a decline of 1.7% this week, ranking 14th among various sectors, while the Hong Kong real estate sector fell by 1.6%, ranking 6th [3][18]. - New housing transaction volume increased by 9.3% week-on-week, marking two consecutive weeks of growth, although it remains down 7.3% year-on-year [4][34]. - The land market shows a slight recovery in premium rates, with an average premium rate of 8% for land transactions in 300 cities [3][27]. Summary by Sections Market Overview - The report highlights a decline in both A-share and Hong Kong real estate sectors, with specific weekly performance metrics indicating a negative trend [3][18]. - The property service and management index in Hong Kong also saw a decrease of 1.9% [26]. Land Market - The land market is characterized by a mix of high premium and base price transactions, with significant competition for core urban land [5][14]. - In the latest land auction in Shanghai, five plots generated a total revenue of 191.56 billion yuan, with varying premium rates [5][14]. Real Estate Transactions - New home sales in 47 cities totaled 370 million square meters, with a week-on-week increase of 9% [4][34]. - Second-hand home transactions also saw a slight increase of 2.1% week-on-week, indicating a stabilization in the market [4]. Investment Recommendations - The report suggests focusing on developers with strong positions in first-tier and core second-tier cities, such as Greentown China and Binjiang Group, which are expected to benefit from potential policy support [7]. - It also highlights the importance of property management companies that are well-positioned for growth and dividends, recommending companies like China Resources Mixc Lifestyle [7]. Data Tracking - The report provides detailed statistics on real estate development investments, new construction areas, and sales figures, indicating a continued decline in overall market performance [6][16][19]. - The cumulative land transaction area in 300 cities reached 16,293 million square meters, down 3.6% year-on-year [27][32].

Core Viewpoint - The China Securities Index for Hong Kong Stock Connect Real Estate has shown a mixed performance, with a recent increase over the past month but a decline over the last three months, indicating volatility in the real estate sector [2]. Group 1: Index Performance - The China Securities Index for Hong Kong Stock Connect Real Estate reported a 3.41% increase over the past month, a 0.88% decrease over the last three months, and a 7.81% increase year-to-date [2]. - The index was established on November 14, 2014, with a base value of 3000.0 points [2]. Group 2: Index Composition - The index includes a maximum of 50 eligible Hong Kong-listed companies that meet the real estate theme criteria [2]. - The top ten weighted companies in the index are: Sun Hung Kai Properties (13.77%), Beike-W (13.5%), China Resources Land (10.84%), Cheung Kong Property (7.94%), China Overseas Land & Investment (6.58%), Wharf Holdings (4.42%), Henderson Land Development (4.42%), Sino Land (4.26%), Wharf Real Estate Investment (3.23%), and China Resources Mixc Lifestyle (2.97%) [2]. Group 3: Market and Sector Allocation - The index's holdings are entirely composed of companies listed on the Hong Kong Stock Exchange, with a 100% allocation to the real estate sector [3][4]. - The index undergoes biannual adjustments every June and December, with provisions for temporary adjustments in special circumstances [4].

Investment Rating - The report assigns an "Overweight" rating to the real estate sector [1] Core Insights - The real estate market in May continued to show stability, aligning with the government's efforts to stabilize the market and prevent further declines [3][60] - Key indicators such as sales area and sales amount showed narrow fluctuations compared to April, with sales area declining by 4.6% year-on-year and sales amount decreasing by 7.1% [5][60] - The report anticipates that urban renewal will be a significant focus, with an emphasis on "building good houses" as a consensus in the industry [61][62] Summary by Sections 1. Industry Performance - In May, the real estate market maintained a steady state, with most data showing narrow fluctuations compared to April [5][60] - Year-on-year sales area decreased by 4.6%, while sales amount fell by 7.1% [5][60] - The report notes that the overall trend is expected to continue, with a focus on stabilizing the market [3][60] 2. Investment Trends - The cumulative real estate development investment from January to May 2025 was 36,234 billion yuan, a year-on-year decrease of 10.7% [12] - New construction area saw a year-on-year decline of 22.8%, while completed area decreased by 17.3% [18][26] - The report suggests that the focus should shift from year-on-year growth rates to absolute levels, with a projected total real estate development investment of 10 trillion yuan for 2024 [61][62] 3. Sales Performance - From January to May 2025, the total sales area of commercial housing was 35.3 million square meters, with a year-on-year decline of 2.9% [26][28] - The sales amount for commercial housing was 34,091 billion yuan, reflecting a year-on-year decrease of 3.8% [10][26] - The report highlights a mismatch in supply and demand in first-tier cities, with sales showing significant strength [33] 4. Funding Sources - Total funding sources for real estate reached 40,232 billion yuan from January to May 2025, down 5.3% year-on-year [45][47] - Domestic loans accounted for 16.6% of funding sources, with a year-on-year decrease of 1.7% [47][49] - The report indicates that self-raised funds decreased by 7.2%, while foreign investment saw a significant increase of 49% [47][56] 5. Investment Recommendations - The report recommends several companies for investment, including Vanke A, Poly Development, and China Overseas Development in the development category [62] - For commercial and residential sectors, companies like China Resources Land and Longfor Group are highlighted [62] - The report emphasizes that companies with lower burdens will have a more significant advantage in the current structural market [62]

Investment Rating - The industry investment rating is "Positive" (maintained) [1] Core Viewpoints - The real estate market continues to show signs of weak recovery, with sales data in May indicating a slight improvement compared to April [8] - The overall sales area of commercial housing in the first five months of 2025 decreased by 2.9% year-on-year, with sales amounting to 3.41 trillion yuan, down 3.8% year-on-year [5][14] - The new housing market is expected to maintain a weak recovery trend in June, driven by increased marketing efforts from real estate companies and a rise in supply [32] Summary by Sections Sales Data - In the first five months of 2025, the national commercial housing sales area was 353 million square meters, with a year-on-year decrease of 2.9% [5][14] - The sales area in May alone saw a year-on-year decline of 3.3%, while the sales amount dropped by 6.0% [5][14] - The average sales price in May decreased by 2.8% year-on-year but increased by 2.5% month-on-month, indicating a trend of price adjustments [5][14] Construction Data - The new housing starts in the first five months of 2025 totaled 232 million square meters, down 22.8% year-on-year [6][21] - The completion area for housing was 184 million square meters, reflecting a year-on-year decline of 17.3% [6][21] Investment Trends - Real estate development investment in the first five months of 2025 reached 3.62 trillion yuan, down 10.7% year-on-year [7][24] - The funding available to real estate developers decreased by 5.3% year-on-year, with various funding sources showing significant declines [28][29] Investment Recommendations - Recommended stocks include strong credit real estate companies that understand customer demand, such as Greentown China, China Overseas Development, and China Merchants Shekou [32] - Companies benefiting from both real estate recovery and consumption promotion policies include China Resources Land and Longfor Group [32]

Core Viewpoint - China Resources Vientiane Life (01209.HK) has seen its stock price reach a new high of 39.900 HKD, reflecting positive market sentiment and investor interest [1][2]. Company Overview - China Resources Vientiane Life is a leading property management and commercial operation service provider in China, listed on the Hong Kong Stock Exchange since December 9, 2020 [2]. - The company was included in the Hang Seng Index on November 18, 2022, and selected as one of the "Double Hundred Enterprises" by the State-owned Assets Supervision and Administration Commission in 2023 [2]. - The strategic goal of the company is to create a world-class enterprise and become the most influential light asset management company in China, focusing on urban quality life service platforms [2]. Business Model - The company operates under a "2+1" integrated business model, which includes commercial management, property management, and a large membership system [2]. - It aims to build a comprehensive ecosystem that encompasses all formats, customers, products, and services [2]. Brand Philosophy - The brand philosophy of China Resources Vientiane Life is "Extraordinary Vientiane," emphasizing the use of wisdom to lead urban quality life and enhance the value of spatial assets [2]. - The company seeks to endow cities and lives with extraordinary qualities through exceptional culture, technology, space, and ecology [2].