Core Viewpoint - Dalian Wanda's privatization plan has been approved by the court and the Hong Kong Stock Exchange, effective from November 27, marking the end of its 12-year listing period [1][2]. Group 1: Company Actions - Dalian Wanda plans to repurchase shares for a total consideration of approximately HKD 29.32 billion as part of its privatization strategy [2]. - The company has faced market fluctuations and liquidity pressures due to cyclical industry developments, leading to its decision to delist [2]. - In 2024, Dalian Wanda reported a revenue increase of 49.42% but incurred a net loss of HKD 290 million [8]. Group 2: Industry Trends - Since 2022, over 30 listed real estate companies in A-shares and H-shares have delisted, with many due to market shocks and debt defaults, while some opted for voluntary privatization [4][6]. - The recent trend indicates a weakening of the capital platform's role for real estate companies, with a shift in valuation logic in the capital market [4][11]. - The transition from a focus on "high growth" to "value stocks" reflects a fundamental change in how the capital market evaluates real estate firms, emphasizing financial safety, liquidity, and sustainable business models [12][11]. Group 3: Comparative Cases - Minmetals Real Estate and Upkun Real Estate have also announced their delisting, citing limited capital-raising capabilities and loss of advantages from being listed [4][8]. - Upkun Real Estate, which was once among the top 30 real estate firms in Shanghai, faced significant losses and was unable to resume trading after being suspended for over 18 months [6]. - Other companies, such as Midea Real Estate and Huayuan Real Estate, have begun to divest from traditional real estate operations to focus on lighter asset models or other business directions [12][13].

Core Viewpoint - The article discusses the recent trend of real estate companies in China, particularly focusing on the privatization and delisting of firms like Joy City Property and Minmetals Land, reflecting a significant shift in the capital market's perception of the real estate sector [1][4][8]. Group 1: Company Actions - Joy City Property's privatization plan has been approved by the court and the Hong Kong Stock Exchange, effective from November 27, marking the end of its 12-year listing [1]. - Minmetals Land also announced its delisting due to limited capital-raising capabilities and the loss of advantages associated with being a listed company [4]. - Since 2022, over 30 listed real estate companies in A-shares and H-shares have delisted, with most being forced to do so due to market shocks and debt defaults, while some opted for voluntary privatization [4][6]. Group 2: Market Trends - The article highlights a fundamental change in the valuation logic of the capital market towards real estate companies, moving from a focus on high growth and leverage to an emphasis on financial safety, liquidity, and sustainable business models [10]. - The previous era of "scale myth" driven by financial leverage is no longer appealing to investors, leading to a significant decline in the market value and price-to-book ratios of listed real estate firms [4][10]. - The shift in market dynamics has prompted some companies to explore new development models, including divesting traditional real estate operations to focus on lighter asset management or other business avenues [10]. Group 3: Financial Performance - Joy City Property reported a 49.42% increase in revenue but still faced a net loss of 290 million yuan in 2024, indicating ongoing financial struggles despite revenue growth [7]. - Minmetals Land has experienced continuous losses over the past three years, emphasizing the need for companies to prioritize survival and risk management [7]. - Upkan Real Estate, which faced a significant decline in performance, reported a net profit loss of 2.243 billion yuan in 2022, leading to its eventual delisting after failing to meet reporting requirements [6][7].

Core Viewpoint - The valuation logic of the capital market for real estate is shifting from "cyclical stocks" to "value stocks" [1][14]. Group 1: Company Developments - Joy City (大悦城) has received court approval for its privatization plan, which will take effect on November 27, marking its official delisting after 12 years of being publicly traded [1][2]. - Joy City plans to repurchase shares at a total cost of approximately HKD 29.32 billion, citing market performance fluctuations and liquidity pressures as reasons for its delisting [2][5]. - Minmetals Land (五矿地产) also announced its delisting due to limited capital financing capabilities and loss of advantages from being listed [5][8]. Group 2: Market Trends - Since 2022, over 30 listed real estate companies in A-shares and H-shares have delisted, with most delistings being passive due to market shocks and debt defaults, while some have chosen active privatization [5][7]. - Among the recent delistings, Upkun Real Estate (上坤地产) faced passive delisting after failing to meet listing requirements, including a prolonged suspension of trading [6][7]. - The capital market's role in supporting real estate companies has weakened, as evidenced by the declining market valuations and the loss of financing platform value [11][14]. Group 3: Shifts in Valuation Logic - The previous era of high growth and high profit for real estate companies is over, with new evaluation criteria focusing on financial safety, liquidity, profitability quality, sustainability of business models, and corporate governance [15][16]. - The transition from "cyclical stocks" to "value stocks" indicates that companies must adapt to new market expectations or consider delisting as a fresh start [15][16]. - Several companies have begun to divest traditional real estate operations and shift towards lighter asset models or other asset classes to maintain their presence in the capital market [15][16].