Investment Rating - The report maintains a "Positive" investment rating for the real estate industry in China [4] Core Insights - The real estate market showed resilience in May, with new home sales improving month-on-month and a narrowing year-on-year decline [6][29] - The report anticipates a continued downward pressure on sales in the second half of the year due to potential uncertainties from U.S.-China trade negotiations [6][29] - The report highlights the importance of high-quality land reserves and product strength for real estate companies to achieve alpha attributes [6][29] Summary by Sections Market Performance - In the 23rd week, the real estate sector index underperformed compared to the CSI 300 index, with a relative return of -0.1% [6][9] - The CSI 300 index closed at 3874.0 with a weekly increase of 0.9%, while the real estate index (Shenwan) closed at 2174.1 with a weekly increase of 0.8% [10][11] Policy Developments - National policies include central government support for urban renewal actions, with 20 cities including Beijing and Guangzhou selected [13][15] - Local policies from Jiangsu and Hunan aim to boost consumption and support the acquisition of existing homes for affordable housing [13][21] Sales Data - In the 23rd week, new home sales in 44 major cities were 14,000 units, a decrease of 33.1% from the previous week, while second-hand home sales in 21 major cities were 15,000 units, down 23.0% [6][16] - Inventory levels decreased, with 18 major cities holding 825,000 units, down by 21,000 units from the previous week [6][23] Company Announcements - Key companies such as Chengjian Development and Haitai Development announced significant asset restructuring and share transfer plans [28][29] - The report notes that several companies are engaging in share buybacks and dividend distributions [28][29] Investment Recommendations - The report recommends buying Poly Developments (600048) and China Merchants Shekou (001979), while suggesting to pay attention to companies like China Resources Land (01109) and Yuexiu Property (00123) [6][29]