WINNOVATION(SZ:000620) Jin Rong Jie·2026-01-07 02:01Core Viewpoint - The A-share real estate sector is experiencing a significant short-term rally, with core stocks showing active performance and a notable profit effect, driven by positive market sentiment towards central and local government policies and market recovery [1][2]. Group 1: Policy and Market Dynamics - The central government has released multiple favorable policies to stabilize the real estate market, including the cancellation of unreasonable restrictions and the establishment of financing coordination mechanisms in cities [2][4]. - Beijing's new policy to lower home purchase thresholds has led to a significant increase in market activity, with a notable rise in transaction volumes during the New Year holiday [3][4]. - A reduction in the value-added tax on housing transactions is expected to invigorate the second-hand housing market and facilitate smoother transactions between new and second-hand homes [3][5]. Group 2: Sector Opportunities - The demand for urban renewal is expected to create substantial opportunities in the real estate sector, with an estimated 7 billion square meters of housing stock requiring updates due to depreciation [4][5]. - The property service industry is projected to benefit from the focus on housing services and the ongoing transition to a stock market, with significant growth in housing service and real estate asset management sectors [4][5]. - The construction and building materials sector, particularly in prefabricated buildings and energy-efficient materials, is anticipated to see increased demand driven by urban renewal and affordable housing projects [5]. - The real estate service and renovation sectors are expected to thrive due to heightened activity in second-hand housing transactions and the release of pent-up demand for home improvements [5].