Investment Rating - The report maintains an "Overweight" rating for the real estate sector [1] Core Insights - The real estate sector is experiencing a significant decline in sales, with a notable drop in both new and second-hand housing transactions across major cities [4][37] - Recent government policies, such as talent attraction initiatives in Nanjing and housing loan optimizations in Shenyang, aim to stimulate demand in the real estate market [6][13] - The overall market performance shows a rebound, with the Shenwan Real Estate Index increasing by 5.07%, outperforming the CSI 300 Index [3][11] Summary by Sections 1. Weekly Market Review - The Shenwan Real Estate Index rose by 5.07%, while the CSI 300 Index increased by 2.79%, indicating a relative outperformance of 2.29% [3][11] 2. Industry Fundamentals - For the week of January 2-8, the total number of new homes sold in 38 key cities was 19,373 units, reflecting a year-on-year decrease of 31.1% and a month-on-month decrease of 58.6% [4][21] - The total area sold was 178.5 million square meters, with a year-on-year decrease of 39.8% and a month-on-month decrease of 64.5% [4][21] - In the same week, the total number of second-hand homes sold in 16 key cities was 16,210 units, down 21% year-on-year and 6.9% month-on-month [37][40] 3. Land Market Supply and Transactions - During the week, land supply reached 2,258.2 million square meters, with a year-on-year increase of 25.3% [5] - However, land transactions fell sharply, with a total area of 2,488.6 million square meters sold, down 62.2% year-on-year [5] 4. Financing Analysis - Real estate companies issued a total of 3.53 billion yuan in credit bonds, marking a year-on-year decrease of 57.67% but a month-on-month increase of 411.59% [5] 5. Investment Recommendations - The report suggests focusing on financially stable leading real estate companies such as Poly Developments, China Merchants Shekou, and Yuexiu Property, which are expected to navigate market fluctuations effectively [6] - Property management companies like China Resources Mixc Life and Poly Property are also highlighted as potential beneficiaries of market recovery [6]