Investment Rating - The report maintains a recommendation for the real estate industry, indicating a cautious outlook with potential for stabilization in the market [2][6][41]. Core Insights - The real estate market continues to face pressure, with new construction and sales data showing significant declines. The report highlights a downward trend in new construction area, with an August year-on-year decrease of 20.3%, reflecting a 4.8 percentage point reduction from the previous month [2][42]. - Development investment also remains under pressure, with an August year-on-year decline of 19.5%, indicating that construction intensity is weak due to ongoing challenges in the sales market [2][42]. - The report suggests that the overall investment in construction may exhibit a "W-shaped" fluctuation pattern, with a short-term expectation of no V-shaped recovery [2][42]. Summary by Sections Sales Data - In August, the year-on-year growth rate of sales area adjusted for the base period was -10.6%, a decrease of 2.7 percentage points from the previous month. The overall new housing market has shown low-level fluctuations since May [6][15]. - Cumulatively, from January to August, the sales area reached 573 million square meters, with a year-on-year decline of 4.7% [9][16]. Construction Data - The new construction area in August saw a year-on-year decline of 20.3%, continuing a downward trend. The report anticipates that new construction will show a pattern of rising and then falling in the second half of the year [2][42]. - The completion area in August also experienced a year-on-year decrease of 21.4%, although it showed a slight recovery from the previous month [2][42]. Investment and Funding - The total development investment from January to August was 6 trillion yuan, reflecting a year-on-year decline of 12.9% [9][16]. - Funding sources for real estate projects showed a year-on-year decrease of 8.0% in August, indicating ongoing challenges in the financial landscape for real estate companies [7][9]. Market Trends - The report notes that the average price of new homes in August was 9,601 yuan per square meter, with a year-on-year decline of 2.7% [9][16]. - The report emphasizes the importance of monitoring the gap between net rental yields and mortgage rates as a key factor influencing total demand in the housing market [41].

Core Viewpoint - The Hefei Baoneng City project, which has been dormant for years, is undergoing a significant revival following its successful restructuring on December 30, 2024, with various partnerships being established to advance the project [1][4]. Group 1: Project Background - The Hefei Baoneng City project was initiated in 2014 as a major investment attraction project, with plans for a large-scale industrial development that includes residential and high-rise office properties [2]. - In 2014, Baoneng Group acquired two plots in the Binhu District for approximately 1.14 billion yuan and nearly 2.4 billion yuan, respectively, with a premium rate of 11% for the first plot [2]. - The project faced multiple delays and halts due to environmental regulations and contractual disputes, leading to a standstill in construction after the completion of the first three residential phases [2][4]. Group 2: Recent Developments - The revival of the Binhu Baohui project involves a joint construction effort by Greentown and China Railway Real Estate, introducing high-end product lines, while the commercial area will be operated by China Resources Vanguard, aiming to create a premium shopping center [2]. - The restructuring plan was approved by the Hefei Intermediate People's Court, with a consortium led by Beijing Urban Construction Technology Group and China Railway Real Estate as the new investors [4]. - A signing ceremony was held with multiple partners, including design and construction firms, indicating a collaborative approach to move the project forward [1].

Group 1 - New housing prices in first-tier cities have seen a reduction in the rate of decline both month-on-month and year-on-year, with overall new housing prices in 70 cities showing a year-on-year decline narrowing to 3.0% [1][10][24] - The number of cities with rising new housing prices month-on-month increased to 9 in August, compared to 6 in July, while the number of cities with year-on-year price increases remained at 5 [1][14][24] - In August, Shanghai led the new housing price increases with a month-on-month rise of 0.4% and a year-on-year increase of 5.9%, making it the only first-tier city to achieve growth in both metrics [3][20][23] Group 2 - Second-hand housing prices in 70 cities experienced a month-on-month decline of 0.6%, with the rate of decline expanding by 0.1 percentage points [2][15][19] - Year-on-year, second-hand housing prices decreased by 5.5%, with the decline narrowing by 0.4 percentage points, while first-tier cities showed mixed results in their year-on-year performance [2][15][19] - In August, only one city, Changchun, saw a month-on-month increase in second-hand housing prices, while all cities experienced year-on-year declines [2][19][20] Group 3 - The overall real estate market in China is moving towards stabilization, with expectations for continued small fluctuations in housing prices amid supportive fiscal and monetary policies [4][24] - Recommended investment targets include strong credit real estate companies that can cater to improving customer demand, as well as firms benefiting from both residential and commercial real estate recovery [4][24]

美银证券发表研究报告指，其覆盖的内地主要物业管理公司在今年上半年实现8%的收入增长，核心利 润增幅相若。虽然增长速度尚算稳健，但该行认为投资者更关注费用收回及营运现金流状况。非国有企 业在适应行业变化方面更为积极，但策略调整需要时间。 华润万象生活是美银在该行业的唯一"买入"推荐，目标价由44港元上调至45港元，仍是该行的行业首 选。碧桂园服务盈利状况仍不稳定，但股息展望较稳定，该行上调目标价至6.3港元，维持"跑输大 市"评级；下调中海物业目标价至5.2港元。 ...

Core Viewpoint - Bank of America Securities reports that major property management companies in mainland China achieved an 8% revenue growth in the first half of the year, with core profit growth being similar, indicating a stable growth rate [1] Industry Summary - The industry participants performed better than expected in terms of profit margins and operational cash flow management during the first half of the year [1] - There is a cautious outlook for the industry due to ongoing issues with fee collection that are unlikely to be resolved in the short term [1] Company Recommendations - China Resources Vientiane Life (01209) is the only "Buy" recommendation from Bank of America in this sector, with the target price raised from 44 HKD to 45 HKD, maintaining its status as the firm's top pick [1] - The earnings forecast for the property management sector has been slightly lowered due to rapid increases in impairment losses among Chinese real estate property management companies [1] - Country Garden Services (06098) has an unstable earnings situation, but its dividend outlook remains stable, leading to an increase in the target price to 6.3 HKD while maintaining an "Underperform" rating [1] - China Overseas Property (02669) has had its earnings forecast reduced, with the target price lowered to 5.2 HKD [1]

Core Insights - The real estate sector has shown a significant increase in performance, with a weekly gain of 5.8%, outperforming the CSI 300 and Wind All A indices by 4.4% and 3.7% respectively [3][45][49] - New housing sales in 36 cities decreased by 11.0% week-on-week but increased by 2.3% year-on-year, with total sales for the year up to September 12 at 69.36 million square meters, down 7.4% year-on-year [3][9][21] - The second-hand housing market saw a week-on-week increase of 16.1% and a year-on-year increase of 16.3%, with total sales for the year reaching 56.004 million square meters, up 12.2% year-on-year [3][15][21] Real Estate Market Situation - New housing sales in major cities like Beijing, Shanghai, Guangzhou, and Shenzhen showed varied performance, with Beijing and Shanghai experiencing declines of 8.4% and 10.0% respectively [9][32] - The inventory of new homes in 13 cities stands at 77.989 million square meters, with a year-on-year decrease of 9.2% and an average de-stocking period of 20.8 months [3][21][33] Land Market Situation - The land transaction volume from September 8 to September 14 was 9.663 million square meters, a decrease of 51.7% week-on-week and 69.0% year-on-year, with an average land price of 1,074 yuan per square meter [3][35][36] - Cumulative land transactions for the year reached 75.8187 million square meters, down 7.0% year-on-year [3][35] Investment Recommendations - For real estate development, companies such as China Resources Land, Poly Developments, and Greentown China are recommended for investment [3][7] - In property management, firms like China Resources Vientiane Life and Greentown Services are highlighted as having long-term investment value [3][8] - In real estate brokerage, leading platforms like Beike and I Love My Home are suggested for consideration [3][8]

Investment Rating - The report maintains a "Positive" rating for the real estate sector [2][3][34] Core Viewpoints - The investment side remains weak, with a year-on-year decline of 12.9% in investment from January to August 2025, and a more significant drop of 19.5% in August alone [1][20] - The sales side is also experiencing a downturn, with a cumulative sales area decrease of 4.7% year-on-year from January to August 2025, and a sharper decline of 10.6% in August [21][34] - Funding sources are showing a narrowing decline, with total funding sources down 8.0% year-on-year from January to August 2025, but domestic loans have turned positive [35] Investment Analysis Summary Investment Side - From January to August 2025, total real estate development investment reached 603.09 billion yuan, down 12.9% year-on-year, with August alone seeing a 19.5% decline [3][20] - New construction area decreased by 19.5% year-on-year, while the completion area fell by 17.0% [20][21] - The report predicts a continued weak investment environment, with forecasts of a 11.0% decline in investment, 15.1% in new construction, and 20.0% in completions for 2025 [20] Sales Side - Cumulative sales area from January to August 2025 was 570 million square meters, down 4.7% year-on-year, with a 10.6% drop in August [21][34] - The total sales amount for the same period was 5.5 trillion yuan, reflecting a 7.3% decrease year-on-year, with August sales amounting to 544.9 billion yuan, down 14.0% [21][34] - The average selling price of commercial housing decreased by 2.6% year-on-year, with a slight increase in August compared to July [33][34] Funding Side - Total funding sources for real estate development enterprises amounted to 6.4 trillion yuan from January to August 2025, down 8.0% year-on-year [35] - Domestic loans showed a year-on-year increase of 0.2%, with August seeing a 1.1% rise [35] - The report indicates that while funding remains slightly tight, it is expected to improve gradually due to recent policy relaxations [35]

Market Overview - The Hong Kong stock market opened lower but rebounded, with the Hang Seng Index closing up 0.22% at 26,446.56 points and a total turnover of HKD 290.2 billion [1] - The Hang Seng China Enterprises Index rose 0.21% to 9,384.76 points, while the Hang Seng Tech Index increased by 0.91% to 6,043.61 points [1] Blue Chip Performance - WuXi Biologics (02269) led blue-chip stocks, rising 6.47% to HKD 38.84, contributing 13.66 points to the Hang Seng Index [2] - Other notable blue-chip performers included Li Auto-W (02015) up 4.56% and Nongfu Spring (09633) up 4.11% [2] Sector Highlights - The large technology stocks mostly rose, with Alibaba up over 2% and Kuaishou up 1% [3] - The lithium battery sector saw significant gains, with CATL (03750) surging 7% to a new high [3] - The pharmaceutical sector also performed well, with Jiangsu Hengrui Medicine (02617) skyrocketing 115% [3] Policy and Industry Developments - The National Development and Reform Commission and the National Energy Administration announced a plan to achieve a new energy storage capacity of over 180 million kilowatts by 2027, with an investment of approximately RMB 250 billion [4] - The Ministry of Industry and Information Technology released a plan for the automotive industry aiming for 32.3 million vehicle sales in 2025, with a focus on new energy vehicles [6] Stock Movements - Jiangsu Hengrui Medicine (02617) experienced a dramatic increase of 115.58%, reaching HKD 415 [8] - Lion Group (02562) surged 25.34% to HKD 19.24 after announcing a binding investment agreement in AI and blockchain [9] - Shanghai Fudan (01385) faced pressure, dropping 3.77% to HKD 37.82, following its inclusion in the U.S. entity list [11]

Group 1: New City Holdings - In the first eight months of the year, New City Holdings achieved a total commercial operating revenue of approximately 9.338 billion yuan, representing a year-on-year increase of 10.91% [1] - In August alone, the company reported a commercial operating revenue of about 1.194 billion yuan, up 8.83% compared to the same month last year [1] - The total contract sales amount for the first eight months reached approximately 13.566 billion yuan, with a total sales area of about 1.748 million square meters [1] Group 2: Overseas Chinese Town A - Overseas Chinese Town A agreed to add Wu Bingqi as a candidate for a non-independent director in the company's ninth board of directors [1] - Wu Bingqi has extensive experience in the real estate sector, having held various senior positions in companies such as China Resources Land and China State Construction Engineering Corporation [1] Group 3: Pet Economy in Zhejiang - Zhejiang Province aims to develop a pet economy with a market scale exceeding 30 billion yuan by 2027 and 50 billion yuan by 2030 [2] - The province plans to promote the integration of the pet economy with other sectors, including tourism and traditional manufacturing [2] - Initiatives include launching pet-friendly tourism trials to meet the reasonable needs of "people and pets traveling together" [2] Group 4: Huai'an MixC Opening - Huai'an MixC is set to open on September 20, featuring a total construction area of 126,000 square meters and eight commercial floors [3] - The project will host over 330 quality brands, with 150 brands making their debut in Huai'an, including 93 first-time brands in Northern Jiangsu [3] Group 5: Senior-Friendly Tourism Train in Guangxi - A new senior-friendly tourism train will be launched by the Nanning Railway Bureau in October, designed to enhance the travel experience for elderly passengers [4] - The train will feature various safety and comfort improvements, including L-shaped anti-slip handrails and a health-conscious meal service [4] Group 6: Guangdong Cultural and Tourism Consumption Season - Guangdong Province will launch a "Golden Autumn Cultural and Tourism Consumption Season" from September 12 to November 20, distributing a total of 20 million yuan in cultural and tourism consumption vouchers [5] - The initiative aims to attract local residents and tourists during key events such as the Mid-Autumn Festival and National Day [5]

Investment Rating - The investment rating for the real estate industry is "Positive" (maintained) [5][6][57] Core Viewpoints - Since September 2024, the central government has emphasized "stabilizing the real estate market and stock market," which is crucial for boosting social expectations and facilitating domestic demand circulation [5][6] - The report suggests that high-quality residential properties may experience a development wave due to policy guidance and changes in supply-demand structure [5][6] Market Performance - The Shanghai Composite Index fell by 1.2%, the Shenzhen Component Index decreased by 0.8%, while the ChiNext Index rose by 2.4% during the week [9] - The real estate sector (Shenwan) declined by 1.5% [9] - Notable stock performances included Shoukai Co. (+32.0%) and Ningbo Fuda (+12.7%), while *ST Nanzhi fell by 22.6% [9] Data Tracking New Housing Transactions - In the week of August 30 to September 5, 2025, 42 key cities saw new housing transactions totaling 1.7 million square meters, a decrease of 15.3% week-on-week and 9.4% year-on-year [15] - For August 2025, the total new housing transactions in these cities reached 7.3 million square meters, down 4.1% month-on-month and 18.8% year-on-year [18] Second-Hand Housing Transactions - In the same week, 21 key cities recorded second-hand housing transactions of 171,000 square meters, a decrease of 9.1% week-on-week but an increase of 10.2% year-on-year [29] - For August 2025, total second-hand housing transactions in these cities were 793,000 square meters, down 7.2% month-on-month but up 0.9% year-on-year [34] Industry News - The Ministry of Housing and Urban-Rural Development held a meeting emphasizing high-level legislation to promote high-quality development in housing and urban construction [45] - Shanghai initiated a new round of adjustments to existing mortgage rates, allowing second-home buyers to apply for a rate reduction to the first-home level [45] - In Shenzhen, policies were optimized to lower purchasing thresholds and mortgage costs for residents and enterprises [45] Company Announcements - In August 2025, major real estate companies reported varying sales figures: China Overseas Development at 18.33 billion yuan (down 0.7% year-on-year), and Greentown China at 10.6 billion yuan (up 27.7% year-on-year) [48] - Poly Developments recently acquired two projects in Lanzhou and Sanya, with a total payment of 1.612 billion yuan [48]