Industry Overview Middle - View Events - In the production industry, Shanghai released the Action Plan for Strengthening the Linkage between Futures and Spot Markets to Enhance the Competitiveness of Non - ferrous Metal Commodities, aiming to improve resource allocation and global pricing influence [1]. - In the service industry, on January 20, the Ministry of Natural Resources and the Ministry of Housing and Urban - Rural Development issued a notice to support urban renewal, and six departments including the Ministry of Finance and the State Taxation Administration announced tax incentives for community - based family services from January 1, 2026, to December 31, 2027 [2]. Industry Data Upstream - In the chemical industry, the price of natural rubber declined slightly; in agriculture, the prices of eggs and pork continued to rise; in the non - ferrous metal industry, the prices of aluminum and copper decreased slightly [3]. Middle - stream - In the chemical industry, the operating rates of PX and urea were at a high level, while the operating rate of PTA remained low; in the energy industry, the coal consumption of power plants was at a low level [4]. Downstream - In the real estate industry, the sales of commercial housing in second - tier cities increased seasonally; in the service industry, the number of domestic flights decreased slightly [5]. Key Industry Price Indexes | Industry | Index Name | Price on 1/20 | Year - on - Year Change | | --- | --- | --- | --- | | Agriculture | Spot price of corn | 2264.3 yuan/ton | 0.19% | | | Spot price of eggs | 7.9 yuan/kg | 3.70% | | | Spot price of palm oil | 8724.0 yuan/ton | 1.09% | | | Spot price of cotton | 15864.2 yuan/ton | - 0.45% | | | Average wholesale price of pork | 18.5 yuan/kg | 2.21% | | Non - ferrous metals | Spot price of copper | 100660.0 yuan/ton | - 1.70% | | | Spot price of zinc | 24324.0 yuan/ton | 0.06% | | | Spot price of aluminum | 23700.0 yuan/ton | - 2.50% | | | Spot price of nickel | 145633.3 yuan/ton | - 0.74% | | Black metals | Spot price of aluminum | 17081.3 yuan/ton | - 1.41% | | | Spot price of rebar | 3215.3 yuan/ton | - 0.99% | | | Spot price of iron ore | 824.4 yuan/ton | - 1.77% | | | Spot price of wire rod | 3465.0 yuan/ton | - 0.93% | | Non - metals | Spot price of glass | 12.9 yuan/square meter | - 0.23% | | | Spot price of natural rubber | 15475.0 yuan/ton | - 2.47% | | | China Plastics City price index | 776.1 | 0.86% | | Energy | Spot price of WTI crude oil | 59.3 dollars/barrel | - 0.27% | | | Spot price of Brent crude oil | 63.8 dollars/barrel | - 0.17% | | | Spot price of liquefied natural gas | 3526.0 yuan/ton | - 1.18% | | | Coal price | 805.0 yuan/ton | 1.13% | | Chemical | Spot price of PTA | 5009.3 yuan/ton | - 1.94% | | | Spot price of polyethylene | 6810.0 yuan/ton | 0.54% | | | Spot price of urea | 1767.5 yuan/ton | 1.14% | | | Spot price of soda ash | 1204.3 yuan/ton | - 0.82% | | Real estate | Cement price index: national | 134.5 | - 0.30% | | | Building materials composite index | 115.3 points | - 0.41% | | | Concrete price index: national index | 90.2 points | - 0.25% | [34]

据央视新闻，2026年，城市更新、老旧小区改造如何高质量推进？"好房子"将如何提升我们的生活品 质？央视专访住房城乡建设部部长倪虹。 住房城乡建设部部长 倪虹：城市更新蕴含着巨大的投资消费潜力。既要把新房子建成"好房子"，也要 把老房子逐步改造成"好房子"。支持房企合理的融资需求，支持居民刚性和改善性住房需求。 记者：今年城市更新咱们要高质量推进，如何高质量推进，今年有什么新的做法吗？ 住房城乡建设部部长 倪虹：城市更新应该讲是我们历史发展到这么一个时间点，旧房的更新改造比我 们新房的建设量来比，它是一个巨大的市场。应该讲城市更新是一个新的蓝海。既能够改善老百姓的生 活空间，也能够拉动我们的消费和需求。 记者：今年在城市更新方面，咱们的工作重点是什么？ 住房城乡建设部部长 倪虹：重点是抓好三件事。一是持续推进城镇老旧小区的改造，去消除安全隐 患，改善居住条件和生活环境。二是全面推进完整社区建设。着眼于便民、利民、安民，着力补上公共 服务的短板。三是开展城市小微公共空间的改造，增加群众身边的社区公园、口袋公园。 记者：哪些是咱们优先考虑的？ 住房城乡建设部部长 倪虹：比如说现在大家非常关心的小区的停车问题，充电 ...

Core Viewpoint - China's urbanization is transitioning from rapid growth to stable development, focusing on high-quality urban development as a key path during the "14th Five-Year Plan" period [1] Group 1: Dimensions of Modern Urban Development - The six dimensions of modern urban development include innovation, livability, beauty, resilience, civilization, and intelligence, which together form a comprehensive understanding of a modern city [1] - Innovation is driven by technology, knowledge, human resources, culture, and institutional factors, with 103 innovative cities accounting for 51% of the national population and 85% of R&D funding [1] - Livability emphasizes the construction of public service facilities and adequate public spaces within walkable distances for residents [1] - The beauty dimension focuses on achieving standards for air quality, water quality, waste management, and green space coverage [1] - Resilience involves the city's ability to withstand disasters and recover quickly, supported by smart infrastructure and resource management [1] - Civilization encompasses improvements in various environments, including governance, law, market, culture, and ecology [1] - The intelligence dimension relies on digital and smart infrastructure to support urban management and services [1] Group 2: High-Quality Urban Development Content - High-quality urban development is essential as urbanization rates approach 70%, with projections indicating a rate of 67% by the end of 2024 [1] - Key strategies include enhancing innovation carriers, improving public services, optimizing living spaces, and strengthening ecological protection [1] - Urban renewal actions are crucial for improving quality, efficiency, and sustainability, focusing on revitalizing existing resources [2] - Different urban renewal models include organic updates for industrial upgrades, systematic planning for infrastructure improvement, and market-driven participation for project execution [2] - Legal and financial frameworks are being established to support urban renewal, including policies for funding and technical standards [2]

Core Viewpoint - The article emphasizes the importance of urban renewal and the transformation of old neighborhoods into "good houses" to enhance living quality and stimulate investment consumption potential [1][2]. Group 1: Urban Renewal Strategy - Urban renewal is identified as a significant market opportunity, with a focus on improving living spaces and driving consumption [2]. - The key priorities for urban renewal this year include the renovation of old urban neighborhoods to eliminate safety hazards, the comprehensive development of complete communities, and the enhancement of small public spaces [3]. - The government aims to address pressing issues such as parking, charging stations, and public service facilities in the context of urban renewal [4]. Group 2: Real Estate Market Stability - The strategy includes stabilizing the real estate market through targeted policies and supporting reasonable financing needs of real estate companies and residents [4]. - The focus will be on establishing foundational systems for real estate development, financing, and sales, including project company systems and promoting a "see what you get" approach in property sales [4]. Group 3: Quality Housing Development - The key to high-quality real estate development lies in accelerating transformation and upgrading to meet the demand for high-quality housing [5]. - The definition of a "good house" includes standards for design, materials, construction methods, and maintenance services, with specific improvements such as increased ceiling heights and elevator installations in taller buildings [6]. - The article suggests that more old neighborhoods will be renovated, and new technologies and materials will be introduced in the construction sector, making "good houses" a preferred choice for homebuyers [6][7].

央视新闻消息，2026年，城市更新、老旧小区改造如何高质量推进？"好房子"将如何提升我们的生活品 质？财经老王专访住房城乡建设部部长倪虹。 0:00 / 4:05 住房城乡建设部部长 倪虹：城市更新蕴含着巨大的投资消费潜力。既要把新房子建成"好房子"，也要把老 房子逐步改造成"好房子"。支持房企合理的融资需求，支持居民刚性和改善性住房需求。 财经老王：今年城市更新咱们要高质量推进，如何高质量推进，今年有什么新的做法吗？ 住房城乡建设部部长 倪虹：城市更新应该讲是我们历史发展到这么一个时间点，旧房的更新改造比我们新 房的建设量来比，它是一个巨大的市场。应该讲城市更新是一个新的蓝海。既能够改善老百姓的生活空 间，也能够拉动我们的消费和需求。 财经老王：今年在城市更新方面，咱们的工作重点是什么？ 财经老王：哪些是咱们优先考虑的？ 住房城乡建设部部长 倪虹：比如说现在大家非常关心的小区的停车问题，充电桩的问题，适老化的问 题，"一老一小"的问题，公共服务设施的配套问题。城市更新是建设现代化人民城市的重要抓手，蕴含着 巨大的投资消费潜力，是投资于物和投资于人的重要结合点。 倪虹部长告诉老王，今年将着力稳定房地产市场，继 ...

记者：哪些是咱们优先考虑的？ 住房城乡建设部部长 倪虹：比如说现在大家非常关心的小区的停车问题，充电桩的问题，适老化的问 题，"一老一小"的问题，公共服务设施的配套问题。城市更新是建设现代化人民城市的重要抓手，蕴含 着巨大的投资消费潜力，是投资于物和投资于人的重要结合点。 倪虹部长告诉记者，今年将着力稳定房地产市场，继续因城施策、精准施策，发挥好房地产融资"白名 单"制度的作用，支持房企合理的融资需求，支持居民刚性和改善性住房需求。 住房城乡建设部部长 倪虹：下一步，重点是有序搭建房地产开发、融资、销售等基础性制度。在房地 产开发上，做实项目公司制，在房地产融资上，推行主办银行制，在商品房销售上，要推行现房销售 制，实现"所见即所得"。 据央视新闻，2026年，城市更新、老旧小区改造如何高质量推进？"好房子"将如何提升我们的生活品 质？央视专访住房城乡建设部部长倪虹。 住房城乡建设部部长 倪虹：城市更新蕴含着巨大的投资消费潜力。既要把新房子建成"好房子"，也要 把老房子逐步改造成"好房子"。支持房企合理的融资需求，支持居民刚性和改善性住房需求。 记者：今年城市更新咱们要高质量推进，如何高质量推进，今年有什么新 ...

（文章来源：央视新闻） 住房城乡建设部部长倪虹在接受采访时表示，今年在城市更新方面，重点是抓好三件事：一是持续推进 城镇老旧小区的改造，去消除安全隐患，改善居住条件和生活环境。二是全面推进完整社区建设。着眼 于便民、利民、安民，着力补上公共服务的短板。三是开展城市小微公共空间的改造，增加群众身边的 社区公园、口袋公园。 ...

（文章来源：央视新闻） 住房城乡建设部部长倪虹在接受采访时表示，城市更新蕴含着巨大的投资消费潜力。既要把新房子建 成"好房子"，也要把老房子逐步改造成"好房子"。支持房企合理的融资需求，支持居民刚性和改善性住 房需求。 ...

Domestic Market Overview - The domestic market showed a weak consolidation with a slight recovery, with the Shanghai Composite Index closing at 4113.65 points, down 0.01%, and the Shenzhen Component Index at 14155.63 points, down 0.97% [1][4] - Among 30 sectors, 17 saw gains, with the oil and petrochemical, construction materials, and real estate sectors leading the increases, while defense, telecommunications, and computer sectors experienced significant declines [1][4] - The total trading volume of the A-share market was approximately 280.42 billion yuan, showing a slight increase compared to the previous day [1][4] Overseas Market Overview - All three major U.S. stock indices closed lower, with the Dow Jones down 1.76%, the S&P 500 down 2.06%, and the Nasdaq down 2.39% [2][4] - Notable declines included 3M Company, which fell nearly 7%, and IBM, which dropped over 4%, leading the Dow's decline [2][4] - Chinese concept stocks mostly fell, with JinkoSolar down over 12% and CenturyLink down more than 10% [2][4] News Highlights - The Chinese government has released five significant fiscal and financial policies aimed at boosting consumption, investment, and industrial upgrades [3][14] - The National Development and Reform Commission is working on plans to stabilize employment and increase urban and rural residents' income [3][19] - The Ministry of Natural Resources and the Ministry of Housing and Urban-Rural Development have announced measures to further support urban renewal actions [3][17] Driving Factors - The macro policy for 2026 will focus on strengthening domestic circulation and expanding domestic demand, with plans to optimize support policies and establish a national-level merger fund [10] - On January 20, 2026, a total of 2233 stocks rose while 3102 fell, indicating a mixed market sentiment [10] - International market fluctuations may impact short-term market sentiment [10]

Summary of the Conference Call on the Real Estate Supply Chain Industry Overview - The real estate supply chain, particularly in the consumer building materials sector, has undergone significant changes over the past four years, with a turning point expected in Q3 2025 when leading companies will see revenue and profit growth year-on-year in Q4 2025, indicating independent growth through strategies like stock renovation, channel expansion, and internationalization despite ongoing industry pressures [1][2] Key Points and Arguments - **Supply Side Changes**: - Companies are enhancing profits through asset impairment, while many peers are exiting or transforming their businesses. The consumer building materials sector is currently undervalued, with most leading companies emerging from difficulties, and a growth trend expected to continue into 2026 [3] - The competition among leading companies is slowing, with strategies such as channel expansion and product diversification being employed to seek new growth points. Price increases in coatings and waterproof materials are anticipated in 2025, with gypsum board also expected to see price hikes in 2026, reflecting a trend of compromise and coexistence among leading firms [4] - **Impact of Urban Renewal Policies**: - Urban renewal policies are significantly boosting the building materials industry, with measures aimed at accelerating the transformation of the stock market to address challenges posed by a declining new housing market. By the end of 2024, there will be approximately 420 million housing units and over 50 billion square meters of total construction area in urban and rural areas, providing substantial demand support for the building materials sector [5] - **Performance in Specific Segments**: - The coatings sector has seen multiple price increases since 2021, with another expected in Q1 2025. Waterproof materials are also set for price hikes in mid-2025, while gypsum board has already undergone several price adjustments. These price changes indicate a shift in demand from the supply side, with these segments stabilizing prices and gradually restoring profitability during a demand downturn [6] - **Revenue Structure Adjustment and Cost Reduction**: - Building materials companies are shifting from reliance on large B clients (real estate bulk purchases) to small B and C end customers (retail market), improving gross margins through channel adjustments and product upgrades. Cost reduction and efficiency measures are expected to show results post-2025, with a notable decrease in expense ratios and improved financial conditions [7] Additional Important Insights - **Current Valuation of the Consumer Building Materials Sector**: - The sector is currently undervalued, showing signs of recovery after several years of adjustment. Leading companies are expected to continue this growth trend into 2026, with ongoing cost reduction measures and diminishing historical issues impacting financial reports, making it a favorable investment opportunity [8] - **Market Expectations and Demand Characteristics**: - Market expectations for the consumer building materials sector are low, with overall demand recovery anticipated to take time. However, there are signs of stabilization and differentiation, such as leading coatings companies exploring the second-hand housing market and non-housing demand growth in sectors like pipes and waterproof materials [9][10] - **Price Elasticity and Supply Structure Expectations**: - Current profit forecasts and valuations for companies have not fully reflected price elasticity. The supply structure has undergone deep adjustments, with small capacities exiting the market, leading to a concentration of market share among companies with brand, channel, and resource advantages, enhancing their pricing power and management capabilities [11] - **Investment Recommendations**: - Investors are advised to focus on companies such as Three Trees, Oriental Yuhong, Henkel Group, and Rabbit Baby, as well as Beixin Building Materials, Weixing New Materials, China Liansu, and ASEAN Holdings, which are decoupling from real estate and transitioning towards C-end and small B clients, with many beginning to expand internationally [12] - **Future Industry Outlook**: - Companies in the industry are making significant efforts to adapt to the current environment, including international expansion, product category diversification, and exploring structural opportunities in the second-hand housing market. While high expectations for rapid demand recovery are tempered, there is confidence that more companies will find recovery opportunities over time, with more sub-sectors expected to stabilize in 2026 [13]