Group 1: Policy Changes - Chengdu has announced the cancellation of housing sales restrictions and adjustments to housing provident fund loan rules to support residents' housing needs and promote market stability [1] - From July 21, 2024, properties purchased before October 14, 2024, can be traded after obtaining property certificates, and from January 1, 2026, second-hand housing certificates obtained before October 14, 2024, will have no transfer restrictions [1] - The minimum down payment ratio for housing provident fund loans has been reduced from 30% to 20%, with a mechanism linking loan amounts to deposit balances to increase loan limits [1] Group 2: Market Activity - In Shenzhen, 1,256 second-hand homes were recorded in the week of July 14-20, 2025, representing a 4.9% decrease compared to the previous week [2] - The real estate industry saw a total of 81 merger and acquisition transactions in the first half of 2025, an increase of 2 transactions compared to the same period in 2024 [5] - The total transaction scale of disclosed M&A deals was approximately 29.1 billion, reflecting a 58% year-on-year decline [5] Group 3: Company Developments - Xiangyu Real Estate Group has initiated the issuance of company bonds amounting to 11.5 billion, with a registered scale not exceeding 13.4 billion [3] - The bonds will have a term of 3 years, with a fixed interest rate in the range of 2.2% to 3% [3] - R&F Properties has been listed as a dishonest executor by the Guangzhou Baiyun District Court due to violations of property reporting regulations [4]

Core Viewpoint - The real estate industry experienced a significant contraction in merger and acquisition (M&A) activities in the first half of 2025, with a total of 81 transactions completed, reflecting a slight increase from the previous year, but a notable decline in total transaction value [1][2]. Group 1: M&A Activity Overview - In the first half of 2025, the real estate sector completed 81 M&A transactions, an increase of 2 transactions compared to the same period in 2024 [1]. - The total transaction value for 60 disclosed transactions was approximately 29.1 billion yuan, representing a year-on-year decrease of 58% [1]. - Despite the overall decline, June 2025 saw a strong rebound with 19 transactions completed, a month-on-month increase of 9 transactions, and a total transaction value of 10.6 billion yuan, marking a substantial month-on-month growth of 334.4% [5]. Group 2: Strategic Shifts and Asset Management - Leading real estate companies are accelerating the divestiture of non-core assets while asset management companies (AMCs) and local special bonds are entering the market to provide new solutions for distress and inventory reduction [2]. - Notably, from November 2024 to June 2025, China Resources Land disposed of multiple assets while focusing on residential business, with a total land acquisition amounting to 62.6 billion yuan, predominantly in first and second-tier cities [5]. Group 3: Financial Institutions and Support Mechanisms - Several AMCs have actively participated in distress relief efforts, with institutions like China Cinda and others establishing a 20 billion yuan fund for revitalizing distressed real estate assets [7]. - In addition, special bonds for acquiring existing residential properties have been issued in some cities, with Zhejiang and Sichuan utilizing 2.19 billion yuan for such projects, primarily targeting local state-owned enterprises [8].