Investment Rating - The report maintains an "Outperform" rating for the real estate sector [1] Core Viewpoints - The real estate sector has shown resilience, outperforming the Shanghai Composite Index and the CSI 300 Index during the review period [10] - Recent policy adjustments in Beijing and Shanghai are expected to stimulate market transactions and improve sales performance [19] - The overall investment in real estate development continues to decline, with a significant drop in new construction areas and ongoing pressure on sales [51] Summary by Sections Market Review - The real estate sector outperformed major indices, with a 10.07% increase from August 1 to August 25, 2025, compared to 8.69% for the Shanghai Composite and 9.66% for the CSI 300 [10][15] - Year-to-date, the real estate sector has increased by 6.83%, lagging behind the broader market indices [10] Sales Performance - New home sales continued to decline in July and August, with a focus on the impact of policy changes in Beijing and Shanghai [19] - In July, the total sales area of commercial housing was 5.16 million square meters, down 4% year-on-year, with sales revenue down 6.5% [19][23] - The average daily transaction area for new homes in major cities decreased further in August [21] Investment Trends - Real estate development investment fell by 12% year-on-year in July, exacerbating the decline in fixed asset investment growth [51][52] - Manufacturing and infrastructure investments showed positive growth, but real estate development continues to drag down overall investment figures [52] Investment Recommendations - Developers are expected to ramp up sales efforts in anticipation of the "Golden September" period, particularly in core urban areas [19] - Companies with strong market recognition and operational capabilities, such as Binjiang Group and China Resources Land, are likely to benefit from the current market dynamics [19]