Core Viewpoint - Morgan Stanley reports that Shanghai has introduced a new round of housing policy incentives, including easing purchase restrictions for non-residents and reducing the required social security/tax proof from three years to one year for areas outside the outer ring. The firm believes these measures are not surprising and are stronger than similar measures introduced in Beijing last December. They expect transaction volume and prices in Shanghai to stabilize in the next one to two months, but do not anticipate a sustainable recovery in the property market solely based on this policy. The next city expected to ease restrictions is Shenzhen [1]. Group 1: Policy Changes - Shanghai's new housing policy includes easing restrictions for non-residents and reducing the required proof of social security/tax from three years to one year for areas outside the outer ring [1]. - Residents in areas outside the outer ring who hold tax certificates for three years are now allowed to purchase an additional unit [1]. Group 2: Market Outlook - The property sector has risen by 16% year-to-date, and Morgan Stanley expects continued volatility in the sector over the next two months, maintaining resilience until the Politburo meeting at the end of April, which is the next policy window [1]. - Preferred stocks identified by Morgan Stanley include China Resources Land, China Resources Mixc Lifestyle, and China Jinmao, while they believe China Overseas Land & Investment may catch up due to its previous underperformance [1].