Investment Rating - The industry investment rating is maintained as "Outperform the Market - A" [7] Core Insights - The report indicates that the decline in housing prices across 70 major cities is slowing down, with overall downward pressure on prices expected to accelerate policy easing, driving industry stabilization [1] - The report suggests focusing on companies that are reversing their difficulties, such as China Vanke and New Town Holdings, as well as leading firms maintaining land acquisition intensity like China Jinmao and Greentown China [1] Sales Review (8.9-8.15) - Total transactions in 32 monitored cities reached 12,000 units, a week-on-week increase of 7.7%; cumulative transactions for 2025 stand at 506,000 units, a year-on-year decrease of 6.8% [2][13] - In first-tier cities, 3,368 units were sold, up 11% week-on-week, with a cumulative total of 144,000 units for 2025, reflecting a slight year-on-year increase of 0.2% [2][14] - Second-tier cities saw 7,104 units sold, a week-on-week increase of 6.5%, with a cumulative total of 302,000 units for 2025, down 9.8% year-on-year [2][14] - Third-tier cities recorded 1,462 units sold, also up 6.5% week-on-week, with a cumulative total of 60,000 units for 2025, down 6.6% year-on-year [2][14] Land Supply (8.4-8.10) - The planned residential land supply in 100 cities was 4.2 million square meters, with a cumulative supply of 13.607 million square meters for 2025, down 16.3% year-on-year [3][38] - The average floor price for land supply in 100 cities was 3,828 yuan per square meter, with a recent four-week average of 4,753 yuan per square meter, reflecting a 3% decrease and a 10.1% year-on-year increase [3][40] Land Transactions (8.4-8.10) - The planned residential land transaction area in 100 cities was 3.71 million square meters, with a cumulative total of 11.772 million square meters for 2025, showing a year-on-year increase of 4% [4][64] - The average transaction floor price for residential land in 100 cities was 4,409 yuan per square meter, down 31.5% month-on-month and down 45.8% year-on-year, with an overall premium rate of 2.5% [4][66]

Investment Rating - The industry investment rating is "Leading the Market - A" and the rating is maintained [8] Core Viewpoints - The report indicates that the real estate sector is experiencing a seasonal decline in July due to weakened demand caused by high temperatures and a slowdown in supply from developers [5] - The overall industry is expected to stabilize and recover, with potential policy easing in cities following Beijing's lead [5] Sales Summary - From January to July 2025, the total sales area of new commercial housing reached 520 million square meters, a year-on-year decrease of 4.0%, with the sales amount totaling 5 trillion yuan, down 6.5% year-on-year [1] - In July alone, the sales area was 57.09 million square meters, a month-on-month decline of 45.8% and a year-on-year decline of 7.8% [1] Construction Summary - The cumulative new construction area from January to July 2025 was 350 million square meters, down 19.4% year-on-year, with a slight narrowing of the decline compared to the previous month [2] - The completed area was 250 million square meters, down 16.5% year-on-year, with the decline widening compared to the previous month [2] Investment Summary - The total construction area in the first seven months was 6.39 billion square meters, a year-on-year decrease of 9.2% [3] - Real estate development investment reached 5.4 trillion yuan, down 12% year-on-year [3] Funding Summary - From January to July 2025, the total funds in place for real estate development amounted to 5.7 trillion yuan, a year-on-year decrease of 7.5% [4] - Domestic loans accounted for 920.7 billion yuan, showing a slight increase of 0.1% year-on-year, while self-raised funds decreased by 8.5% [4] Investment Recommendations - The report suggests focusing on companies that are reversing their difficulties, such as Jindi Group and New Town Holdings, as well as leading companies maintaining land acquisition intensity like China Jinmao and Greentown China [5]

Market Performance - The Hang Seng Healthcare Index (HSHCI) decreased by 1.16% as of June 27, 2025, with mixed performance among constituent stocks [3] - Ping An Good Doctor (01833) led the gains with an increase of 11.14%, while BeiGene (06160) experienced the largest decline at 8.75% [3][7] - The Hang Seng Healthcare ETF (513060) fell by 0.36%, with a latest price of 0.56 yuan and a turnover rate of 16.93% [3] Liquidity and Trading Activity - The Hang Seng Healthcare ETF saw a significant increase in scale, growing by 2.13 million yuan over the past week, ranking first among comparable funds [4] - The ETF recorded a net financing amount of 1.8212 million yuan this month, with a current financing balance of 319 million yuan [4] ETF Performance Metrics - The Hang Seng Healthcare ETF's net value increased by 15.70% over the past two years, with a maximum monthly return of 28.34% since inception [4] - The ETF's Sharpe ratio for the past year was 1.66, indicating strong risk-adjusted returns [4] - The ETF's management fee is 0.50%, and the custody fee is 0.15% [4] Valuation Insights - The current price-to-earnings ratio (PE-TTM) of the Hang Seng Healthcare Index is 27.07, which is below 91.38% of the historical data over the past three years, indicating a low valuation [5] - The top ten weighted stocks in the Hang Seng Healthcare Index account for 58.28% of the index, with notable companies including Innovent Biologics (01801) and BeiGene (06160) [5] Sector Outlook - Recent government encouragement for innovation has led to active performance in the innovative drug industry chain, despite ongoing pressures from medical insurance cost control [3] - Analysts suggest focusing on high-growth areas such as pharmaceutical outsourcing services and companies in the ophthalmology and dental sectors that are expected to improve profitability [3]