Core Viewpoint - Poly Real Estate's stock price surged by 19.51% on October 10, attributed to the announcement of a share transfer from Poly Southern to Poly Group, which increased Poly Group's stake in Poly Real Estate from 3.03% to 40.72% [2][3] Shareholding Adjustment - On October 9, Poly Development announced a share transfer agreement where Poly Southern transferred 4.512 billion shares (37.69% of total shares) to Poly Group, resulting in Poly Development becoming a direct subsidiary of Poly Group [3][5] - The shareholding structure shifted from a three-tier system to a two-tier direct management model, enhancing Poly Group's control over Poly Development [3][5] Market Reactions and Clarifications - The stock price increase led to speculation about a potential merger between Poly Development and Poly Real Estate, which was denied by Poly Real Estate in a clarification announcement [2][5] - Poly Development stated that the shareholding adjustment was primarily to comply with government requirements for reducing corporate layers, with no changes to management structure [5][6] Business Overlap and Historical Context - Poly Development and Poly Real Estate have defined territories to avoid competition, with agreements in place since 2012 to delineate operational areas [6][7] - Historical attempts to merge the two companies have faced challenges due to differences in their stock market listings and the complexities involved in such a merger [7] - For the first nine months of 2025, Poly Development reported a signed area of 10.1042 million square meters, a decrease of 25.13%, while Poly Real Estate achieved a contract sales area of approximately 1.295 million square meters, ranking 15th in sales among real estate companies [7]