Orient Securities·2025-05-20 08:13Investment Rating - The report maintains a "Positive" investment rating for the real estate industry in China [3]. Core Insights - The implementation of the "new and old distinction" principle for the existing housing sales system is expected to stabilize the market and reduce systemic financial risks in the real estate sector [6][41]. - Recent policies in various regions, such as expanding support for multi-child families in Wuhan and optimizing housing loan conditions in Henan, indicate a trend towards stabilizing the real estate market [12][17]. - The sales of new homes in 44 major cities increased by 35.4% week-on-week, while second-hand home sales rose by 42.4%, suggesting a recovery in market activity [15][21]. - The average premium rate for land transactions in 36 major cities decreased to 5.0%, indicating a cooling in land market dynamics [25][32]. Summary by Sections Market Performance - The real estate sector index underperformed compared to the CSI 300 index, with a relative return of -0.6% [9][10]. - The real estate index closed at 2167.8, reflecting a weekly decline of 0.8% [10]. Policy Developments - Local policies are being introduced to support the real estate market, including measures to enhance the management of pre-sale housing and optimize conditions for affordable housing [12][17]. - The recent policy in Xinyang mandates that all newly developed commercial housing must be sold as existing homes, which is a significant shift from the pre-sale system [6][41]. Sales and Inventory Data - New home sales in 44 major cities reached 19,000 units, while second-hand home sales in 21 major cities totaled 21,000 units, both showing significant increases from the previous week [15][21]. - The inventory of new homes in 18 major cities decreased to 778,000 units, with a sales-to-inventory ratio of 19.6 months, indicating improved market conditions [21]. Land Market Trends - The land market activity decreased, with only 8 plots sold in 36 major cities during the week, and land transfer fees dropped significantly to 6.461 billion yuan [25][32]. - The number of land parcels that were unsold or canceled reached 33, reflecting challenges in the land market [32][40]. Company Announcements - Key companies such as Zhongzhou Holdings and New Town Holdings have released their annual reports and sales updates, indicating varying performance across the sector [38][39].