Investment Rating - The industry investment rating is "Overweight" (maintained) [1] Core Insights - The report highlights a significant reduction in the minimum down payment ratio for commercial property loans to 30%, aimed at stimulating the commercial real estate market and facilitating inventory reduction [5][6] - The current inventory of commercial properties is high, with 141 million square meters of commercial space available for sale as of November 2025, including 52 million square meters of office space [6] - The report anticipates further policy easing to support the commercial real estate sector, as the current measures may have limited impact due to existing disadvantages in loan terms compared to residential mortgages [7][8] Summary by Sections Market Trends - The report indicates a downward trend in the commercial real estate market, with rising vacancy rates and declining rental prices [7] Policy Changes - The People's Bank of China has introduced measures to lower the down payment ratio for commercial property loans, which is expected to ease initial funding pressures for buyers [5][8] Investment Recommendations - Recommended stocks include: 1. Companies benefiting from both residential and commercial real estate recovery: China Resources Land, New World Development, Longfor Group [8] 2. Firms with strong credit profiles and good understanding of customer demand: Greentown China, China Merchants Shekou, China Overseas Land & Investment [8] 3. High-quality property management companies under the "Good House, Good Service" policy: China Resources Mixc Lifestyle, Greentown Service, Poly Property [8]

Core Insights - The central economic work conference held on December 10-11 focused on summarizing 2025's economic work and analyzing the current economic situation, with a systematic deployment for 2026's economic work [1] Group 1: Key Focus Areas - The conference emphasized the need for internal and external coordination, highlighting the importance of strengthening internal capabilities to address external challenges and better coordinating domestic economic work with international trade struggles [2] - There is a strong focus on effectiveness, with macroeconomic policies maintaining a consistent tone with last year, including a commitment to necessary fiscal deficits, total debt scale, and expenditure, reflecting a determination to stabilize the economy and expectations [2] - The conference adopted a problem-oriented approach, addressing issues such as stabilizing investment, maintaining birth rates, and promoting a correct view of performance, indicating a commitment to problem-solving and the need for subsequent related policies [2] - Continuous exploration was highlighted, with a recognition of new insights gained through practice in economic work, echoing last year's emphasis on deepening understanding of economic patterns, showcasing a spirit of innovation and resilience [2] Group 2: Specific Policy Directions - The conference reiterated the "de-inventory" policy in real estate, marking a return to discussions from previous years aimed at addressing excess inventory, particularly in third and fourth-tier cities, with a new focus on encouraging the acquisition of existing properties for affordable housing [3]