Investment Rating - The report maintains an "Overweight" rating for the real estate sector [1] Core Insights - The Shanghai government has relaxed housing purchase restrictions, which is expected to positively impact sales [8] - The real estate sector has shown signs of recovery, with both new and second-hand home sales experiencing a rebound compared to previous weeks [8] - The report emphasizes the importance of financially stable and well-performing leading real estate companies as key investment targets [8] Summary by Sections Weekly Market Review - The Shenwan Real Estate Index increased by 0.51%, while the CSI 300 Index rose by 1.08%, indicating underperformance of the real estate sector compared to the broader market [4][13] Industry Fundamentals - In the week of February 20-26, 2026, 7,098 new homes were sold across 38 key cities, reflecting a year-on-year decline of 72.9% but a month-on-month increase of 43.8% [23] - The total transaction area for new homes was 695,000 square meters, with a year-on-year decrease of 73.7% and a month-on-month increase of 39.9% [23] - For second-hand homes, 6,706 units were sold, showing a year-on-year decline of 68.3% but a month-on-month increase of 185.2% [37] Inventory Situation - The total inventory of commercial housing in 17 key cities was 186,786,000 square meters, with a slight month-on-month decrease of 0.1% and a depletion cycle of 174.1 weeks [50]