Core Viewpoint - The Ministry of Housing and Urban-Rural Development announced that the approval amount for the "white list" projects under the urban real estate financing coordination mechanism has exceeded 7 trillion yuan, ensuring the delivery of over 7.5 million sold but undelivered housing units, thereby protecting the legitimate rights and interests of homebuyers [1][2]. Group 1: Financing Mechanism - The urban real estate financing coordination mechanism aims to address the information asymmetry between real estate companies, projects, and financial institutions, which negatively impacts lending willingness [1][2]. - The mechanism requires local governments to coordinate and implement a "white list" system for real estate projects, allowing financial institutions to assess and support projects facing temporary difficulties without resorting to blind loan withdrawals [2][3]. Group 2: Systemic and Comprehensive Approach - The reform of the real estate financing system emphasizes a systemic and comprehensive approach, establishing a linkage mechanism among the four key elements: people, housing, land, and money [3]. - The Ministry has guided local governments to develop housing plans based on population changes, ensuring a balanced supply and demand in the real estate market [3].

Investment Rating - The report maintains an "Overweight" rating for the real estate development and service sectors [6] Core Views - The gradual implementation of incremental policies is expected to consolidate the trend of the real estate market stabilizing after a decline [5] - The adjustment of housing provident fund loan rates and the combination of reserve requirement ratio cuts and interest rate reductions are anticipated to open up space for commercial loan rate reductions [2] - The reduction in structural monetary policy tool rates is expected to lower the cost of funds for urban village renovations and stock housing acquisitions [3] - The report emphasizes the importance of financing system reforms and the inclusion of REITs in the stock connect program to support the real estate sector [4] Summary by Sections Incremental Policies - The central bank and financial regulatory authorities announced a package of financial policies aimed at the real estate sector, including interest rate cuts and reforms in real estate financing [1] - The expected implementation of these policies is likely to support the stabilization of the real estate market [5] Loan Rate Adjustments - The housing provident fund loan rate was reduced by 0.25 percentage points, saving residents over 20 billion yuan annually [2] - The commercial bank housing loan rates are expected to decline as a result of these adjustments [2] Structural Monetary Policy - All structural monetary policy tool rates were lowered by 0.25 percentage points, which is expected to reduce funding costs for urban village renovations and stock housing acquisitions [3] Financing Reforms - The report highlights the acceleration of financing system reforms that align with new real estate development models, aiming to stabilize real estate financing and meet housing demand [4] Investment Recommendations - The report recommends focusing on core cities, particularly first-tier cities, and companies with strong resources and credit ratings, emphasizing the "three good" logic: good credit, good cities, and good products [5] - Specific stock recommendations include: - A-share developers: Chengdu Investment Holdings, Urban Construction Development, Binjiang Group, New Town Holdings, China Merchants Shekou, Jianfa Holdings [9] - Hong Kong developers: China Resources Land, China Overseas Development, Greentown China, Jianfa International Group, Yuexiu Property [9] - Property management companies: China Resources Vientiane Life, Greentown Service, China Overseas Property, China Merchants Jiyu, Poly Property, Binjiang Service [9]