Market Overview - On October 27, the Shanghai Composite Index rose by 1.18%, the CSI 300 increased by 1.19%, the STAR 50 gained 1.5%, the CSI 1000 was up by 1.03%, the ChiNext Index rose by 1.98%, and the Hang Seng Index increased by 1.05% [3][4] - The best-performing sectors on October 27 were telecommunications (+3.22%), electronics (+2.96%), comprehensive (+2.68%), non-ferrous metals (+2.39%), and steel (+1.92%). The worst-performing sectors were media (-0.95%), food and beverage (-0.2%), and real estate (-0.11%) [3][4] - The total trading volume for the A-share market on October 27 was 23,566 billion yuan, with a net inflow of 2.873 billion Hong Kong dollars from southbound funds [3][4] Key Insights - The report focuses on the real estate sector, emphasizing a preference for "light" and "good" investments [5] - The market view indicates that developer valuations may fluctuate due to policy impacts [5] - There is a shift in recommendation for 2026, moving away from developers to favor management and property operation businesses [5] - The driving factors include ongoing pressure on the real estate industry's fundamentals, with companies having low debt and strong cash flow presenting a higher safety margin [5] - The report suggests a divergence from the market's focus on residential development, advocating for investment opportunities in sub-sectors of real estate [5]