Investment Rating - The report maintains an "Overweight" rating for the real estate industry [2][3] Core Insights - The central economic work conference emphasized the need to stabilize the real estate market, with stronger policies expected next year to help stabilize market expectations [2][3] - New housing transaction volumes in major cities showed mixed results, with a 7.21% decrease week-on-week and a 33.3% decrease year-on-year for the week ending December 11, 2025 [3] - The report highlights that the cumulative transaction area for new homes in 30 cities from December 1 to 11, 2025, was 3 million square meters, reflecting a 38.5% increase compared to the same period in November 2025, but a 31% decrease year-on-year [3] Summary by Sections Market Performance - New home transaction area in 30 major cities was 1.97 million square meters for the week ending December 11, 2025, down 7.21% week-on-week and down 33.3% year-on-year [3] - First-tier cities saw a transaction area of 470,000 square meters, down 13.6% week-on-week and down 44% year-on-year [3] - Second-tier cities recorded a transaction area of 1.12 million square meters, down 8.48% week-on-week and down 22% year-on-year [3] - Third-tier cities experienced a transaction area of 370,000 square meters, up 7.37% week-on-week but down 43.7% year-on-year [3] Land Transactions - The land supply area was 2,426 million square meters, with a transaction area of 2,741 million square meters, resulting in a supply-to-sale ratio of 0.89 [3] - The total land transfer amount was 83.8 billion yuan, with a cumulative land supply area of 87,524 million square meters for the year, down 13% year-on-year [3] Inventory and Market Dynamics - The inventory clearance cycle in 35 cities increased to 24.54 months, up 6.64% month-on-month and down 12.09% year-on-year [3] - The report indicates that the second-hand housing transaction volume in 24 cities increased by 2.67% week-on-week but decreased by 33.97% year-on-year for the week ending December 11, 2025 [3]

Core Viewpoint - The China Securities Regulatory Commission (CSRC) has made a significant announcement to stabilize the market, encouraging cash dividends and implementing supportive policies, which is expected to boost investor confidence and potentially lead to a larger market rally next week [1][2]. Group 1: CSRC's Announcement - On October 17, the CSRC released a "stabilizing pill" by revising the "Corporate Governance Guidelines for Listed Companies," effective from January 1, 2026, which mandates companies to actively return profits to shareholders and maintain stable cash dividend policies [1]. - The new regulations aim to enhance shareholder returns, addressing the previous issue where profitable companies offered minimal dividends, thus compelling companies to distribute more profits to shareholders [2]. Group 2: Multi-Department Collaboration - The CSRC's efforts are supported by coordinated actions from the central bank and the Ministry of Finance, creating a comprehensive policy framework to inject liquidity into the market [4]. - On October 9, the central bank conducted a 1.1 trillion yuan reverse repurchase operation, providing mid-term liquidity support, which is crucial given the 1.3 trillion yuan reverse repos maturing in October [4]. - The Ministry of Finance announced a reduction in the securities transaction stamp duty from 0.1% to 0.05%, effective January 1, 2025, significantly lowering trading costs for investors [4]. Group 3: Market Response - Following the policy announcements, there has been a surge in share buybacks and shareholder increases, indicating strong market confidence [5]. - On October 17, Hainan Huatie announced plans for a share buyback of between 55 million and 100 million yuan, while Shennong Industry completed a buyback of nearly 3 million yuan [5]. Group 4: Long-term Capital Support - As of August 2025, various long-term funds held approximately 21.4 trillion yuan in A-share market value, reflecting a 32% increase since the end of the 13th Five-Year Plan [6]. - Starting in 2025, large state-owned insurance companies are required to invest 30% of their new premiums into A-shares, with a minimum of 100 billion yuan allocated for long-term stock investment trials [7]. - These long-term investments are subject to a three-year assessment period, allowing for a focus on long-term growth rather than short-term price fluctuations, providing a solid foundation for the market [7].

Core Viewpoint - The article discusses the recent policy developments aimed at stabilizing the real estate market in China, focusing on optimizing the use of existing urban space and facilitating foreign investment in property purchases [2][3]. Group 1: National Policies - The Ministry of Natural Resources approved the "Guidelines for Optimizing Urban Stock Space Activation Planning," which fills a technical standard gap for planning the activation of stock space, promoting a shift from "incremental land dividends" to "stock space value" [2]. - The guidelines are expected to accelerate the implementation of existing projects, reduce inventory, and stabilize the land market in the short term, while guiding the industry towards urban renewal and improved living conditions in the long term [2]. Group 2: Local Policies - Eight provinces and cities released policies to stabilize the market, with a focus on housing security, including Suzhou's implementation of a plan for affordable rental housing and Shanghai's introduction of property tax exemption details for eligible first-time homebuyers [3][4]. - Silver City has fully lifted urban residency restrictions, allowing various groups to apply for household registration, which is expected to attract more residents [4]. - Fuzhou has made significant changes to its housing fund withdrawal policy, extending the withdrawal period from one year to three years, which will ease the financial burden on homebuyers [4][8]. Group 3: Policy Trends - The frequency of local market stabilization policies remains low, with a notable increase in subsidy and tax incentive policies, indicating a shift in focus towards supporting homebuyers [11][12]. - The recent month has seen a rise in the issuance of policies related to housing security, with a total of four new policies introduced, while subsidy and tax incentive policies have also gained traction [8][11].

Core Viewpoint - Local governments have significantly increased the frequency of policies aimed at stabilizing the real estate market, with 18 announcements made in the past week, marking a shift to a "high-frequency output" mode for market stabilization since July 2025 [1][2][12]. Policy Trends - The frequency of local "stabilization" policy announcements has remained at 18 for the past week, consistent with the previous week. This marks a notable increase since the central urban work conference in mid-July 2025, indicating a proactive approach to stabilize the market [2][3]. - The most frequently mentioned policy type is the optimization of housing provident fund policies, with 7 mentions in week 32, accounting for over one-third of all stabilization policies [3][6]. Recent Developments - Beijing has introduced multiple supportive measures, including the unbinding of purchase restrictions outside the Fifth Ring Road, an increase in loan limits, and a reduction in down payment ratios for provident fund loans [12][13]. - The focus on "good housing" has increased, with 5 mentions in the past week, as cities like Fujian and Chengdu have issued new regulations to enhance housing quality [3][14]. Housing Quality and Urban Development - Recent policies emphasize high-quality urban development, with cities implementing measures to improve housing quality and meet new housing demands. This includes the introduction of guidelines for high-quality housing design in Fujian [14]. - The housing security measures have been expanded in cities like Chengdu and Xi'an, addressing the needs of specific groups and enhancing the overall housing market [14]. Summary of Local Policies - In the past week, 17 provinces and cities have issued 18 stabilization policies, with significant changes in Beijing's housing policies expected to benefit a large portion of new housing supply [12][13]. - Other cities have also optimized their provident fund policies, allowing for greater flexibility in loan terms and usage [13].

Core Points - The People's Bank of China announced a 0.5 percentage point reserve requirement ratio cut, providing approximately 1 trillion yuan in long-term liquidity and a 0.1 percentage point reduction in policy interest rates [2] - The National Financial Regulatory Administration plans to introduce eight incremental policies to attract more long-term investment from insurance funds and adjust regulatory rules to lower investment risk factors for insurance companies [2] - The China Securities Regulatory Commission will implement reforms to enhance the adaptability and inclusiveness of the STAR Market and ChiNext, along with a plan to promote high-quality development of public funds [2] Market Reaction - The A-share market reacted positively, with over 5,100 stocks rising on the day of the announcement, leading to a 4.15% increase in the Shanghai Composite Index, a 4.36% rise in the Shenzhen Component Index, and a 5.54% surge in the ChiNext Index [4]