Group 1: Investment Rating - The investment rating for the bond sector is "volatile" [1] Group 2: Core Viewpoints - In the first two months of this year, the revenue and profit of industrial enterprises grew well, with the revenue of industrial enterprises above designated size reaching 20.84 trillion yuan, a year - on - year increase of 5.3%, and the total profit reaching 1024.56 billion yuan, a year - on - year increase of 15.2%. The growth rates of fixed - asset investment, export, and social retail in the first two months exceeded market expectations, and the growth of industrial added value of enterprises above designated size also exceeded expectations. The real estate market is still in the process of bottom - finding. The central bank will guide and regulate the interest rate level to promote the low - level operation of the comprehensive social financing cost. The bond futures may be volatile in the short term [1][2] Group 3: Summary of Related Contents Market Review - On Friday, most main contracts of bond futures opened lower and fluctuated horizontally throughout the day. The main contract of 30 - year bond futures TL2606 fell 0.29%, the 10 - year T2606 fell 0.01%, the 5 - year TF2606 rose 0.03%, and the 2 - year TS2606 rose 0.01%. The Wind All - A Index opened lower, rose in the morning session, fluctuated horizontally in the afternoon, and closed up 1.05%. The trading volume was 1.86 trillion yuan, a contraction compared to the previous trading day. International crude oil prices rose, and US stocks fell, with the VIX index rising to 31.05 [1][2] Important Information - Open market: The central bank conducted 146.2 billion yuan of 7 - day reverse repurchase operations on Friday, with 20.5 billion yuan of reverse repurchases maturing, resulting in a net investment of 125.7 billion yuan on the day. - Money market: The overnight interest rate in the inter - bank money market remained low on Friday. The weighted average of DR001 throughout the day was 1.32%, the same as the previous trading day; the weighted average of DR007 throughout the day was 1.44%, also the same as the previous trading day. - Cash bond market: The closing yields of inter - bank treasury bonds fluctuated narrowly compared to the previous trading day. The yield to maturity of 2 - year treasury bonds fell 0.59 basis points to 1.30%, the 5 - year fell 1.21 basis points to 1.55%, the 10 - year fell 0.22 basis points to 1.82%, and the 30 - year fell 0.01 basis points to 2.35%. - National Bureau of Statistics data showed that from January to February, the total profit of industrial enterprises above designated size was 1024.56 billion yuan, a year - on - year increase of 15.2%, and the operating income was 20.84 trillion yuan, a year - on - year increase of 5.3%. - Li Qiang chaired an executive meeting of the State Council to listen to a report on the development of the service industry in China and study relevant policies and measures to accelerate the construction of a hierarchical diagnosis and treatment system. - ECB officials said that if the Iran war drags on until June, interest rate hikes may be unavoidable. ECB Governing Council member and Belgian central bank governor Pierre Wunsch said that if the Iran conflict is not resolved before June, the ECB "most likely" will have to take action and he "agrees" with the current market pricing of at least two interest rate hikes this year [1] Market Logic - The good revenue and profit growth of industrial enterprises in the first two months, along with better - than - expected economic data such as fixed - asset investment, export, and social retail, and the still - bottom - finding real estate market, as well as the central bank's policy on interest rate regulation, all contribute to the short - term volatile situation of bond futures [1][2] Trading Strategy - Traders are advised to conduct band operations [2]

1. Report Industry Investment Rating - Not available 2. Core Viewpoints - The US economy in the second quarter is facing a very complex situation, with the weak real - economy and rising inflation posing challenges to the economic outlook [11] - The Federal Reserve is expected to maintain a wait - and - see attitude in the second quarter [11] - The Iran - US war is likely to end in April, and inflation caused by the energy shock is temporary [11] - There is a trend of the US dollar index weakening in the second quarter [11] 3. Summary by Related Contents Economic Situation - The current US economic situation is complex. Although recent real - economy data has risen, the labor market shows signs of a trend of weakness, and it is expected to continue to deteriorate while the downward pressure on the real economy will increase [3] Inflation and Monetary Policy - Inflation will rise significantly due to the energy shock, but this energy price increase is more of a one - time shock. Central bank monetary policy will remain relatively cautious, and there is no obvious expectation of expanding easing in the second quarter [5] Real Estate Market - The real estate market remains weak. Due to the energy shock, the credit spread has begun to rise, further pressuring the weak real estate market. Attention should be paid to the evolution of the real - estate market's chain reaction in the second quarter, especially the negative impact of the real - estate market's negative feedback on the credit spread under the pressure of private fund redemptions [8] Dollar Index - The market expects the forward interest - rate cut rhythm to be postponed, and inflation pressure will cause the Federal Reserve to maintain relatively high interest rates. The energy crisis is likely to be resolved in the second quarter. The US dollar index may weaken in the second quarter if the energy crisis does not continue [10]

Group 1: Report Industry Investment Rating - Not provided Group 2: Core Viewpoints of the Report - In March 2026, the LPR quotes remained unchanged, which was in line with market expectations. The direct reasons were that the pricing basis of LPR quotes remained unchanged and there was a lack of motivation for banks to actively lower the LPR quote spreads. The fundamental reason was that the macro - economy started strongly in 2026, and the current demand for stabilizing growth was not high, so the monetary policy was in an observation period [3][4]. - It is expected that a comprehensive policy - based interest rate cut will likely occur around mid - year, with a cut of 10 to 20 basis points, which will drive the LPR quotes to follow suit. This is an important measure to promote consumption and investment and hedge against external uncertainties [4]. - Due to factors such as geopolitical fluctuations and the continuous implementation of anti - involution policies, the price level will rise moderately this year, and the CPI increase will still be low. The exchange rate factor's impact on the flexible adjustment of domestic monetary policy is weakening, providing sufficient space for moderately loose monetary policy including interest rate cuts [5]. - It is expected that the regulatory authorities may guide the 5 - year - plus LPR quotes to decline significantly and combine with fiscal interest subsidies to lower the residential mortgage interest rate, which is crucial for stimulating housing market demand and reversing market expectations [5]. Group 3: Summary by Related Content LPR Quotes in March 2026 - On March 20, 2026, the 1 - year LPR was reported at 3.0% (the same as last month), and the 5 - year - plus LPR was reported at 3.5% (the same as last month) [2]. Reasons for Unchanged LPR Quotes in March - The pricing basis of LPR quotes remained unchanged as the policy interest rate (7 - day reverse repurchase rate) was stable [3]. - There was a lack of motivation for banks to actively lower the LPR quote spreads. Although the medium - and long - term market interest rates declined slightly, the commercial banks' net interest margin was at a historical low in Q4 2025, and there was pressure on the net interest margin to narrow in Q1 2026 [3]. Fundamental Reasons for Unchanged LPR Quotes since the Beginning of the Year - The macro - economy started strongly in 2026, with exports exceeding expectations, and improvements in consumption and investment growth in January - February. The new quality productivity sectors such as high - tech manufacturing developed rapidly, so the current demand for stabilizing growth was not high [4]. - In January 2026, the central bank launched a package of structural monetary policies, so the monetary policy was in an observation period [4]. Future Outlook - It is expected that a comprehensive policy - based interest rate cut will occur around mid - year, with a cut of 10 to 20 basis points, driving the LPR quotes to follow suit [4]. - The price level will rise moderately this year, and the CPI increase will be low. The exchange rate factor's impact on domestic monetary policy adjustment is weakening, providing space for moderately loose monetary policy [5]. - It is expected that the regulatory authorities may guide the 5 - year - plus LPR quotes to decline significantly and combine with fiscal interest subsidies to lower the residential mortgage interest rate [5].

Investment Rating - The report assigns a "Buy" rating for the company with a target price of HKD 58.83 or USD 22.52, indicating a potential upside from the current price of HKD 43.76 or USD 17.01 [9][52]. Core Insights - The company's performance in 2025 was under pressure due to a declining real estate market, with a total GTV of RMB 3.18 trillion, down 5% year-on-year, and a revenue of RMB 946 billion, up 1% year-on-year. The adjusted net profit decreased by 30% to RMB 50 billion [10][9]. - The brokerage business faced challenges from the real estate sector but managed to increase market share, with a 1% rise in market share for both existing and new homes [9][10]. - The company’s secondary business segments, including home decoration and rental services, showed robust growth, contributing RMB 67 billion in profit, a 28% increase [9][10]. - The report anticipates a recovery in profit margins starting in 2026, following a year of restructuring and cost optimization [9][10]. Financial Forecast - The forecast for adjusted net profit is RMB 72 billion in 2026, RMB 87 billion in 2027, and RMB 100 billion in 2028, representing year-on-year growth rates of 44%, 20%, and 15% respectively [9][48]. - The company’s revenue is projected to be RMB 879 billion in 2026, with a growth rate of -7.0%, followed by RMB 925 billion in 2027 and RMB 977 billion in 2028, with growth rates of 5.2% and 5.7% respectively [4][48]. - The adjusted PE ratio is expected to be 18x, leading to a valuation of RMB 1,826 billion for the company [52]. Business Performance - In 2025, the company’s adjusted operating profit margin was at a historical low of 4.5%, with expectations for recovery in 2026 as operational efficiencies improve [41][9]. - The company’s operational expenses decreased by RMB 1.1 billion compared to 2024, with a projected decline in operational expenses in 2026 due to completed organizational restructuring [41][9]. - The home decoration business generated RMB 154 billion in revenue, a 4% increase year-on-year, while the rental service business saw a significant 53% increase in revenue to RMB 219 billion [36][9].

Investment Rating - The investment rating for the real estate industry is "Outperform the Market" (maintained) [2] Core Insights - In early 2026, real estate sales and investment have declined year-on-year, but the rate of decline has narrowed compared to Q4 of the previous year, indicating a relative improvement [3][4] - New housing and second-hand housing prices have seen an expanded year-on-year decline but a reduced month-on-month decline, primarily due to better performance in first-tier cities [4][19] - Development investment has seen a reduced decline, but the funds available to real estate companies are negatively impacted by poor sales [4][38] - Both new construction and completion areas have seen an expanded year-on-year decline [4][60] - The real estate market is described as lukewarm, with high-frequency data indicating a critical point between "good" and "bad," making it unlikely for real estate stocks to experience significant volatility in the near term [4][69] Summary by Sections Sales and Investment Data - In January-February 2026, real estate development investment was 961.2 billion yuan, down 11.1% year-on-year, with the decline narrowing by 6.1 percentage points compared to the previous year [3][38] - New housing starts totaled 50.84 million square meters, down 23.1%, while completed housing area was 63.2 million square meters, down 27.9% [3][60] - New residential sales area was 92.93 million square meters, down 13.5%, and sales revenue was 81.86 billion yuan, down 20.2% [3][5] Price Trends - The average selling price of new residential properties was 8,809 yuan per square meter, down 7.7% year-on-year, with a decline of about 20% from the peak [19] - In February 2026, the price of new residential properties in 70 cities fell by 3.5% year-on-year, while second-hand residential prices fell by 6.3% [19] Funding and Investment - Funds available to real estate companies amounted to 1,304.7 billion yuan, down 16.5% year-on-year, with a significant decline in personal mortgage loans [38] - The decline in pre-sales and deposits was 21.5%, indicating a challenging funding environment for real estate companies [38] Construction Activity - New construction area in January-February 2026 was 50.84 million square meters, down 23.1%, while the completion area was 63.2 million square meters, down 27.9% [60] - The new construction area was only 27% of the level seen in the same period of 2019, indicating a significant contraction in activity [60]

Core Insights - The report highlights a narrowing decline in real estate sales in January-February 2026, with a sales area of 92.93 million square meters, representing a year-on-year decrease of 13.5%, an improvement from the previous month's decline of 15.6% [7][8] - The average selling price of commercial housing decreased to 8,809 yuan per square meter, down 6.0% from December 2025 and 7.7% year-on-year, indicating ongoing pressure on housing prices [8][10] - The report anticipates a continued decline in new construction and investment in the real estate sector, with new construction area expected to drop by 18% in 2026 [14] Real Estate Sales - In January-February 2026, the total sales amount reached 81.86 billion yuan, with a year-on-year decrease of 20.2%, but the decline is less severe than the previous month [8][10] - The residential sales area saw a year-on-year decline of 15.9%, while the sales amount decreased by 21.8% [8] - The report notes that the sales area decline is still significant, remaining in double-digit negative growth, necessitating close monitoring of market conditions in March and April [8] Housing Inventory - The broad inventory of residential properties reached 1.45 billion square meters by the end of February 2026, a decrease of 2.7% from December 2025 but a year-on-year decline of 17.1% [9] - The current housing inventory is at its highest level since June 2016, with a depletion cycle of 26.4 months, indicating a slow sales pace [9] - The report indicates that the existing housing inventory is approximately 438 million square meters, marking a 1.3% year-on-year increase [9] Real Estate Development Investment - Real estate development investment in January-February 2026 amounted to 961.2 billion yuan, down 11.1% year-on-year, with a significant narrowing of the decline compared to the previous month [10] - The report attributes the narrowing decline to improved construction investment, with a construction area decrease of 11.7% [10] - The investment decline is expected to continue, particularly in new construction, which is projected to decrease by 18% in 2026 [14] Developer Financing - Funds received by real estate companies decreased by 16.5% year-on-year to 1.3 trillion yuan, showing an improvement from a previous decline of 26.7% [13] - The report highlights that sales receipts remain weak, with a 27.6% year-on-year decrease in sales revenue [13] - External financing for developers has shown some improvement, with domestic loans decreasing by 13.9% but at a reduced rate compared to previous months [13] Market Outlook - The report forecasts a total sales area of 810 million square meters for 2026, a decrease of 8% year-on-year, with an expected average selling price of 9,144 yuan per square meter [14] - The overall market sentiment is cautious, with potential turning points anticipated in policy and fundamental market conditions later in the year [15][24] - The report suggests focusing on developers with stable fundamentals and high market share in key cities, as well as those exploring new business models in commercial real estate [16][24]

1. Report Industry Investment Rating No relevant content provided. 2. Core Viewpoints of the Report - In 2026, the macro - environment is better than that in 2025. Although the recovery of the domestic economy cannot be achieved overnight, both the macro - economy and asset prices are expected to continue the overall upward repair trend [3][44]. - The current macro - economic recovery momentum is weak, mainly due to insufficient domestic effective demand represented by real estate and consumption, and structural over - capacity in multiple industries. Macro - policies need to increase support, and the supply side needs to be cleared [44]. - The PPI year - on - year growth rate is expected to accelerate from negative to positive under the pull of the sharp rise in crude oil prices. The real estate market is at a critical node of stabilizing and recovering, and its subsequent drag on the macro - economy is expected to be significantly narrowed [3][44]. 3. Summary by Directory 3.1 Manufacturing PMI Seasonal Decline - In February, the manufacturing PMI was 49.0%, down 0.3 percentage points from the previous month. Large - scale enterprises' PMI was 51.5%, up 1.2 percentage points; medium and small - scale enterprises' PMIs were 47.5% and 44.8% respectively, down 1.2 and 2.6 percentage points [5]. - Among the five sub - indexes of the manufacturing PMI, the production index, new order index, raw material inventory index, employment index, and supplier delivery time index were all below the critical point, indicating a slowdown in production, a decline in market demand, a slight narrowing of the decline in raw material inventory, a slight decline in employment, and a slowdown in supplier delivery time [6]. - The non - manufacturing business activity index in February was 49.5%, up 0.1 percentage points from the previous month. The construction industry business activity index was 48.2%, down 0.6 percentage points; the service industry business activity index was 49.7%, up 0.2 percentage points. The seasonal decline of the manufacturing PMI in February has limited symbolic meaning [9]. 3.2 CPI and PPI Continued to Improve - In February 2026, the national CPI increased by 1.3% year - on - year and 1.0% month - on - month. The average CPI from January to February increased by 0.8% compared with the same period of the previous year. Food and tobacco prices increased by 1.4% year - on - year, affecting the CPI to rise by about 0.41 percentage points. Other seven major categories of prices showed five increases and two decreases [10][11]. - In February 2026, the national PPI decreased by 0.9% year - on - year, with the decline narrowing by 0.5 percentage points compared with the previous month, and increased by 0.4% month - on - month. The average PPI from January to February decreased by 1.2% compared with the same period of the previous year. In March, the sharp rise in crude oil prices is expected to significantly boost the PPI, and the PPI year - on - year growth rate in 2026 is expected to accelerate from negative to positive [13][15]. 3.3 High Growth in Imports and Exports - From January to February 2026, China's total import and export value was 1.09954 trillion US dollars, a year - on - year increase of 21%. Exports were 656.578 billion US dollars, a year - on - year increase of 21.8%; imports were 442.960 billion US dollars, a year - on - year increase of 19.8%; the trade surplus was 213.618 billion US dollars [16]. - From January to February, China's exports to the United States, the European Union, ASEAN countries, and Japan all maintained steady growth. Exports to the United States were further replaced by exports to ASEAN. The real risk of China's foreign trade lies in the increased risk of a US economic recession and the decline in demand caused by the slowdown of the global economic growth rate [21][23]. 3.4 Weak Resident Credit Demand and Decline in M1 Growth Rate - At the end of February 2026, the stock of social financing scale was 451.4 trillion yuan, a year - on - year increase of 8.2%. The increase in social financing scale in the first two months of 2026 was 9.6 trillion yuan, 316.2 billion yuan more than the same period of the previous year [24][25]. - At the end of February, the balance of broad - money (M2) was 349.22 trillion yuan, a year - on - year increase of 9%, with the growth rate remaining the same as in January. The balance of narrow - money (M1) was 115.93 trillion yuan, a year - on - year increase of 5.9%, with the growth rate rebounding by 1 percentage point. The M1 - M2 gap narrowed to - 3.1%, indicating an increase in the degree of currency activation [27]. 3.5 High Growth in Industrial Production, Weak Social Retail, and Positive Fixed - Asset Investment - From January to February, the added value of industrial enterprises above the designated size increased by 6.3% year - on - year in real terms and 0.83% month - on - month in February [29]. - From January to February, the total retail sales of consumer goods were 8.6079 trillion yuan, a year - on - year increase of 2.8%. Affected by the high base of the previous year and the decline in crude oil prices, the consumption of petroleum products, automobiles, and building materials was weak, dragging down the consumption growth rate. There is still much room for domestic consumption recovery, and further consumption - promotion policies may be introduced in 2026 [29]. - From January to February, the national fixed - asset investment (excluding rural households) was 5.2721 trillion yuan, a year - on - year increase of 1.8%. The growth rates of manufacturing investment, infrastructure investment, and real estate development investment all rebounded [32]. 3.6 Continued Decline in Real Estate Sales and Downward Trend in the Real Estate Market - From January to February, the sales area of new commercial housing decreased by 13.5% year - on - year, and the sales amount decreased by 20.2% year - on - year. The real estate market continued to cool down [33][35]. - Real estate new construction, construction, and completion also declined further. At the end of February, the inventory of commercial housing for sale increased slightly. The real estate market is at the bottom stage, and with the decline of the base, the year - on - year decline in sales area and amount is gradually narrowing. If strong policies are introduced, it will be conducive to improving market expectations and accelerating the inflection point of the real estate market [36][41]. 3.7 Summary and Outlook - In January - February 2026, the macro - economy remained stable, but the recovery momentum needed to be strengthened. The manufacturing PMI declined seasonally, imports and exports maintained high growth, price indexes continued to rise, M1 and M2 continued to rebound, and industrial added value maintained a high growth rate. However, the growth rate of social retail was weak, and the real estate market was still in a downward trend [44]. - The current constraints on macro - economic recovery and asset price repair are mainly due to insufficient domestic effective demand and over - capacity in some industries. In March 2026, the PPI year - on - year growth rate is expected to accelerate from negative to positive, and the drag of the real estate market on the macro - economy is expected to be significantly narrowed. The macro - environment in 2026 is better than that in 2025 [44]. - The financial market is currently in a state of "weak reality, strong expectation", and market sentiment continues to improve. Although full of twists and turns, the macro - economy and asset prices in 2026 are expected to continue the upward repair trend. It is necessary to track the implementation details of subsequent policies, observe the upward strength of prices, and patiently wait for the upward signal of the macro - economy [45].

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [4][26]. Core Insights - In February 2026, the new home prices in 70 major cities decreased by 0.3% month-on-month, while second-hand home prices fell by 0.4%. The decline in both categories has narrowed compared to January, where the decreases were 0.4% and 0.5% respectively [4]. - The number of cities experiencing a decline in new home prices decreased from 62 to 53, with an average decline of 0.41%, which is a slight improvement from January [4]. - First-tier cities saw new home prices stabilize, with Beijing and Shanghai experiencing slight increases of 0.2% month-on-month, while Guangzhou remained stable and Shenzhen's decline narrowed [4]. - Second-tier cities also showed a narrowing decline in both new and second-hand home prices, with 32% of second-tier cities reporting stable or increasing new home prices [4]. - Third-tier cities experienced a decline in both new and second-hand home prices, but the rate of decline has also narrowed [4]. Summary by Sections New Home Prices - In February 2026, new home prices in 70 major cities decreased by 0.3%, with 53 cities experiencing declines, a reduction of 9 cities from January. The average decline was 0.41%, a slight improvement from the previous month [4]. - First-tier cities saw new home prices stabilize, with Beijing and Shanghai increasing by 0.2% and Guangzhou remaining stable. Shenzhen's decline narrowed to 0.3% [4]. - Second-tier cities' new home prices fell by 0.2%, with 32% of cities reporting stable or increasing prices [4]. - Third-tier cities' new home prices decreased by 0.3%, with only one city reporting an increase [4]. Second-Hand Home Prices - Second-hand home prices in February 2026 fell by 0.4%, with 66 cities experiencing declines, a slight improvement from January's 0.5% decline [4]. - First-tier cities saw a decrease of 0.1% in second-hand home prices, with Beijing and Shanghai reporting increases of 0.3% and 0.2% respectively [4]. - Second-tier cities' second-hand home prices decreased by 0.4%, with some cities like Nanjing and Ningbo showing minimal declines [4]. - Third-tier cities experienced a 0.5% decline in second-hand home prices, with all cities reporting decreases [4]. Investment Opportunities - The report suggests focusing on three main lines for investment: 1. Companies with stable fundamentals and high market share in first and second-tier cities, such as China Resources Land and China Merchants Shekou [4]. 2. Smaller companies that have shown significant breakthroughs in sales and land acquisition, like Poly Real Estate [4]. 3. Commercial real estate companies exploring new consumption scenarios, such as China Resources Vientiane Life and Swire Properties [4].

Economic Growth Target - The government has set a GDP growth target of 4.5% to 5% for 2026, which is seen as reasonable and not conservative. However, achieving this target may be challenging due to weak consumption, real estate drag, and declining capital returns [7][8] - The slowdown in China's GDP growth is viewed as a structural and long-term trend, but the pace of decline is relatively mild compared to other major economies [8][9] Investment Expansion - The government plans to issue 800 billion yuan in new policy financial instruments, increasing from 500 billion yuan last year, which is expected to leverage an additional 2 trillion to 3 trillion yuan in funds [10][11] - The total investment from these instruments, combined with other financial tools, could reach 1.3 trillion yuan, significantly enhancing project capital [10][11] Consumption and Real Estate - "Boosting consumption" remains a top priority, with plans to implement a 100 billion yuan special fund to support consumer loans and financing guarantees [12] - The real estate market is expected to take time to recover, with policies likely to be implemented on a city-by-city basis [12] Capital Market Insights - The capital market is seen as having a limited but positive impact on economic growth, particularly in supporting strategic sectors like AI and semiconductors [13] - The role of the stock market should not be overestimated as a substitute for fiscal and monetary policies [13]

Investment Rating - The industry investment rating is "Outperform the Market," indicating that the industry index is expected to perform better than the benchmark index over the next 6-12 months [31]. Core Insights 1. **Property Sales**: In January-February 2026, the national sales area of commercial housing was 92.93 million square meters, with a year-on-year decline of 13.5%, a reduction of 2.1 percentage points compared to December 2025. The sales amount was 818.6 billion yuan, down 20.2% year-on-year, narrowing by 3.4 percentage points from December 2025 [2][6]. 2. **Housing Inventory**: The pressure from existing housing inventory has increased, with the broad inventory area reaching 1.45 billion square meters, down 2.7% from December 2025 but down 17.1% year-on-year. The de-stocking cycle is 26.4 months, which has increased by 0.8 months compared to December 2025 [6]. 3. **Real Estate Development Investment**: The development investment amount in January-February 2026 was 961.2 billion yuan, down 11.1% year-on-year, with the decline narrowing by 24.7 percentage points from December 2025. Residential development investment was 728.2 billion yuan, down 10.7% year-on-year [6][8]. 4. **New Construction and Completion**: The new construction area in January-February 2026 was 50.84 million square meters, down 23.1% year-on-year, while the completion area was 63.2 million square meters, down 27.9% year-on-year, marking the lowest level since 2011 [6][18]. 5. **Developer Financing**: The funds available to real estate companies decreased by 16.5% year-on-year to 1.3 trillion yuan, with a notable decline in sales receipts and external financing. However, the decline in external financing has shown signs of improvement [6][18]. Summary by Sections Property Sales - The sales area and amount for commercial housing showed significant year-on-year declines, but the rate of decline has narrowed compared to previous months [2][6]. Housing Inventory - Existing housing inventory is at its highest level since June 2016, with a broad inventory area of 1.45 billion square meters and a de-stocking cycle of 26.4 months [6]. Real Estate Development Investment - Development investment has decreased, but the rate of decline has narrowed significantly, indicating some recovery in construction activity [6][8]. New Construction and Completion - New construction and completion figures indicate ongoing challenges in the market, with both metrics showing substantial year-on-year declines [6][18]. Developer Financing - The financial situation for developers remains strained, but there are signs of improvement in external financing conditions [6][18].