Orient Securities·2025-05-13 06:45Investment Rating - The report maintains a "Positive" investment rating for the real estate industry in China [4] Core Viewpoints - The recent interest rate cut by the central bank is slightly earlier than expected, which helps stabilize market expectations [2] - The real estate market is experiencing a decline in Q2, with a focus on whether there will be any unexpected policy announcements [6] - The first quarter saw a significant drop in sales for the top 100 real estate companies, with a month-on-month decrease of 41% and a year-on-year decrease of 7% [6] Market Performance - In the 19th week, the real estate sector index underperformed compared to the CSI 300 index, with a relative return of -1.5% [7][10] - The CSI 300 index closed at 3846.2 with a weekly increase of 1.0%, while the real estate index (Shenwan) closed at 2177.9 with a weekly decrease of 0.5% [10][11] Policy Developments - The central bank announced a reserve requirement ratio cut and interest rate reduction, releasing 1 trillion yuan in long-term liquidity [7][13] - Local policies include adjustments to housing loan rates in several cities, with a 0.25 percentage point reduction in personal housing provident fund loan rates effective from May 8, 2025 [7][14] Sales and Inventory Data - New home sales in 44 major cities decreased to 14,000 units, down 28.4% from the previous week, while second-hand home sales also fell by 9.2% [15] - The inventory in 18 major cities decreased to 846,000 units, down 16,000 units from the previous week, with a sales-to-inventory ratio of 21.7 months [18] Land Market Activity - The land market activity decreased, with a total of 161.4 billion yuan in land transfer fees, down 248.3 billion yuan from the previous week [7][26] - The average premium rate for land transactions in 36 major cities was 6.9%, a decrease of 5.1% from the previous week [34] Company Announcements - Key companies such as Poly Developments and China Merchants Shekou have released their sales figures for April 2025, showing significant declines in both sales area and amount [39][40]