Mei Ri Shang Bao·2025-11-20 23:04Core Viewpoint - The real estate sector in China is experiencing a surge, with multiple stocks hitting the daily limit up, driven by positive market sentiment and expectations of policy support for high-quality housing development [1][2][4]. Market Performance - The real estate sector saw significant gains, with stocks like I Love My Home and Caixin Development hitting the limit up within two minutes, leading to a broad rally in the sector [1][2]. - By midday, the Shenwan Real Estate Index rose by 1.59%, with several stocks, including Fuxing Co. and Shimao Group, also experiencing substantial increases [2][3]. - In the Hong Kong market, major real estate stocks like Sunac China and Country Garden saw gains exceeding 12% and 9%, respectively [2][3]. Policy and Industry Outlook - There is an increasing expectation for policy relaxation, with the Central Committee emphasizing the need for high-quality housing development and improved housing supply systems [4][5]. - The current market dynamics indicate a shift towards second-hand housing, with second-hand transactions accounting for 44.8% of total transactions from January to October [1][5]. - The National Bureau of Statistics reported a reduction in the sales area and sales volume of new residential properties, indicating a transition to a market dominated by second-hand housing [5]. Investment Implications - Analysts suggest that stable housing prices are crucial for facilitating economic circulation, and there is potential for further policy support in the real estate sector [5]. - The focus is shifting towards high-quality residential projects, with expectations of a development wave in this segment due to changing policy directions and market demands [4][5].