Market Performance - The real estate sector (CITIC) experienced a decline of -3.3% last week, while the CSI 300 and Wind All A indices changed by -0.6% and +0.5% respectively, resulting in excess returns of -2.7% and -3.8%[46] - Among 29 CITIC industry sectors, real estate ranked 26th in performance[46] New Housing Market - New home sales increased by 0.6% week-on-week but decreased by 36.8% year-on-year during the period from January 10 to January 16, 2026[8] - In major cities, new home transaction areas changed as follows: Beijing +16.3%, Shanghai +1.9%, Guangzhou +18.8%, and Shenzhen -0.6%[8] Second-Hand Housing Market - The transaction area for second-hand homes in 15 cities was 162.3 million square meters, down 1.8% week-on-week and down 8.4% year-on-year[14] - Cumulative transactions from January 1 to January 16, 2026, totaled 331.5 million square meters, reflecting a year-on-year decrease of 14.4%[14] Inventory and Absorption - Cumulative new home inventory in 13 cities reached 77.9 million square meters, with a week-on-week change of -0.1% and a year-on-year change of -4.7%[21] - The absorption cycle for new homes in 13 cities is 23.0 months, with a year-on-year increase of 6.6 months[21] Land Market - Land transaction area from January 12 to January 18, 2026, was 11.746 million square meters, down 21.9% week-on-week and down 49.7% year-on-year[38] - The average land price was 700 RMB/square meter, reflecting a week-on-week decrease of 44.4% and a year-on-year decrease of 51.1%[38] Investment Recommendations - Recommended mainland developers include: A-shares: Binjiang Group, China Merchants Shekou; Hong Kong stocks: China Overseas Development, Greentown China, China Resources Land, Jianfa International Group[7] - Suggested light-asset operation companies include: Property management: Greentown Service; Commercial management: China Resources Mixc Life; Leading intermediary platform: Beike-W[7] Risk Factors - Risks include potential underperformance of real estate regulatory policy relaxation, continued industry downturn, and persistent credit risks leading to liquidity deterioration[7]

Core Viewpoint - Beike-W (02423) has launched a self-regulatory initiative called "Three Musts and Six Prohibitions" to reinforce a neutral market perspective, emphasizing professionalism and integrity in real estate services [1] Group 1: Initiative Details - The initiative officially started on January 2026, with over 80,000 agents, store owners, and platform employees voluntarily signing a commitment letter [1] - Some agents have actively shared their commitment letters on social media, showcasing their adherence to the neutral market perspective [1] - This commitment letter activity is an upgrade from the public behavior norms released by Beike last year, following internal inspections and strict penalties in cities like Hangzhou [1] Group 2: Market Perspective - The platform reiterates the importance of the "neutral market perspective" as a key component of its series of promotional actions [1]

Group 1 - Beike (BEKE.US) stock rose by 3.38% to $18.02 in pre-market trading [1] - Beike announced a share repurchase plan to buy back 603,500 shares for $3.5 million on January 16, 2026 [1] - Recent financial measures in mainland China, such as a 25 basis point cut in the relending rate and a reduction of the minimum down payment for commercial real estate from 50% to 30%, are seen as direct benefits for Beike [1] Group 2 - The closing price of Beike on January 16 was $17.43, with a decrease of 0.68% [2] - The stock's highest price was $17.51, and the lowest was $17.13, with a trading volume of 3.2262 million shares [2] - Beike's total market capitalization is approximately $20.371 billion, with a price-to-earnings ratio of 40.82 [2]

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].

Core Viewpoint - Beike's initiative to launch the "Three Musts and Six Prohibitions" self-discipline action aims to reinforce a neutral market perspective and promote professionalism and integrity in real estate services [1][3]. Group 1: Initiative Details - The "Three Musts" include: 1) providing honest and professional services to stabilize the real estate market; 2) ensuring the authenticity of property information and fulfilling service commitments; 3) offering comprehensive and objective information to assist users in making rational pricing decisions [3]. - The "Six Prohibitions" include: prohibiting subjective speculation that undermines the market, distorting national policy interpretations, publishing false information, manipulating or coercing price negotiations, engaging in fraudulent practices like jumping orders or kickbacks, and exaggerating service effectiveness to mislead clients [3]. Group 2: Industry Context - The initiative is a response to the rise of false listings, aggressive price cutting, and misleading promises by some media influencers, which harm consumer trust and the healthy development of the industry [3]. - As a leading company in the industry, Beike's self-regulatory measures set a benchmark for others, emphasizing the need for the real estate brokerage sector to shift from "traffic competition" to "service competition" [4].

Core Insights - Morgan Stanley's report on Chinese tech stocks presents an optimistic outlook for AI development by 2026, driven by both supply and demand factors [1] - The overseas expansion of internet companies is highlighted as a crucial strategy to address macroeconomic, competitive, regulatory, and geopolitical risks [1] Company Preferences - The report lists preferred stocks with an "overweight" rating, including Tencent, Alibaba, Pinduoduo, Tencent Music, NetEase, BOSS Zhipin, Manbang, Meituan, Trip.com, Tongcheng Travel, TAL Education, and Beike [1]

Core Viewpoint - Beike-W (02423) has launched a self-regulatory initiative called "Three Musts and Six Prohibitions" to reinforce a neutral market perspective, with over 80,000 agents and employees voluntarily signing a commitment letter to uphold this principle [1] Group 1 - The initiative officially started in January 2026 and aims to promote professionalism and integrity in real estate brokerage services [1] - The commitment letter activity encourages agents to publicly display their adherence to a neutral market perspective on social media [1] - This action is an upgrade from the public behavior norms released by Beike last year, following internal inspections and strict penalties in cities like Hangzhou [1]

Group 1: Internet Company Revenue and Profit - JD.com leads the revenue chart with 956.8 billion, followed by Alibaba at 731.9 billion and Tencent at 557.4 billion [1] - Alibaba's net profit stands at 76.5 billion, significantly higher than JD.com's 22.3 billion, while Tencent shows a strong profit of 166.6 billion [1] - The profit margin for Tencent is notably high at 30.63%, compared to Alibaba's 10.45% and JD.com's 2.33% [1] Group 2: Market Trends and Insights - The data indicates a competitive landscape among major internet companies, with varying revenue and profit margins suggesting different business strategies and operational efficiencies [1] - The significant profit margins of Tencent may indicate a focus on high-margin services, while JD.com and Alibaba are still scaling their operations [1] Group 3: Financial Performance Overview - The overall financial performance of the top internet companies reflects a diverse range of growth strategies, with some companies prioritizing revenue growth while others focus on profitability [1] - The financial results for the third quarter of 2025 highlight the ongoing evolution of the internet sector in China, with implications for future investment opportunities [1]

Group 1 - The company Beike-W (02423) announced a share buyback plan, committing to repurchase 603,500 shares at a total cost of $3.5 million [1] - The buyback price per share is set between $5.71 and $5.84 [1]

格隆汇1月19日丨贝壳-W(02423.HK)发布公告，2026年1月16日耗资350万美元回购60.35万股。 ...