Investment Rating - The report maintains a "Buy" rating for key companies in the real estate development sector, including Poly Developments, China Merchants Shekou, and Binjiang Group, while also giving a "Buy" rating to China Overseas Development, China Resources Land, and China Jinmao in the H-share sector [37][71]. Core Insights - The real estate sector has shown resilience, with the real estate (Shenwan) index rising by 7.8% from July 1 to July 25, 2025, outperforming the CSI 300 index by 2.93 percentage points [29][37]. - The report highlights a structural alpha opportunity in the real estate sector, particularly for leading companies with strong brand recognition and product reputation, despite a weak beta performance overall [4][65]. - The report emphasizes the importance of urban renewal and structural optimization in high-capacity core cities, which are expected to benefit from ongoing real estate policies [70][71]. Summary by Sections Real Estate Development Sector Valuation and Key Companies - As of July 25, 2025, the real estate (Shenwan) price-to-earnings (P/E) ratio is 42.93, with a historical percentile of 99.45% [11][20]. - The top-performing A-share real estate companies from July 1 to July 25, 2025, include New Town Holdings (+12.2%), China Merchants Shekou (+9.3%), and JinDi Group (+7.4%) [29][31]. Property Services Sector Valuation and Key Companies - The real estate services (Shenwan) P/E ratio is 46.73, with a historical percentile of 86.21% as of July 25, 2025 [2][40]. - The top-performing A-share property service companies during the same period are TeFa Service (+10.4%), World Union (+9.2%), and Ningbo Fuda (+5.9%) [51][55]. Public Fund Holdings in Real Estate Sector - As of the end of Q2 2025, public funds held a total market value of approximately 484.4 billion yuan in real estate stocks, representing a decrease from 548.4 billion yuan at the end of Q1 2025 [3][63]. Market Trends and Sales Performance - In the first half of 2025, the sales amount for commodity residential properties in major cities increased by 6.0%, while the overall sales amount for the top 100 real estate companies decreased by 11.4% [4][66]. - The report notes a significant increase in land transaction prices and areas in key cities, indicating a potential recovery in the real estate market [67][70]. Investment Recommendations - The report suggests focusing on three main lines for investment: stable leading companies with high product reputation, companies with rich existing resources, and the long-term growth potential of the property services sector [71][70].