Summary of the Conference Call on China's Property Market Industry Overview - The conference call discusses the property market in China, specifically focusing on the data from the National Bureau of Statistics (NBS) regarding house prices in 70 cities. Key Points 1. **Property Price Trends** - The weighted average property price in the primary market fell by **2.0% month-over-month (mom) annualized** in July, following a decline of **2.5% in June**. Year-on-year (yoy), the price decreased by **2.7%** in July compared to **3.1%** in June [2][8][11]. 2. **Divergence Between City Tiers** - Tier-1 cities experienced a **0.2% increase** in primary home prices in July, contrasting with Tier-2 and Tier-3 cities, which saw declines of **2.4%** and **2.3%** respectively [8][11]. 3. **Secondary Market Performance** - Secondary market data indicates price declines ranging from **5% to 20%** over the past year, highlighting a significant drop in market activity [1][8]. 4. **Market Dynamics** - The number of cities with sequentially higher property prices decreased in both primary and secondary markets in July, indicating a broader market slowdown [8][14]. 5. **Transaction Volume Decline** - A high-frequency tracker noted that the **30-city new home transaction volume declined by 20% yoy** in August month-to-date, with inventory months in major cities increasing to **26.3** in August from **25.9** in July, primarily driven by Tier-3 cities [11]. 6. **Policy Measures** - Policymakers have implemented measures to stabilize the property market, including relaxing home purchase restrictions in the outskirts of Beijing and potential state-owned enterprise (SOE) purchases of unsold homes totaling **RMB 300 billion**. However, a repeat of the previous shantytown redevelopment program is deemed unlikely [11][12]. 7. **Market Challenges** - The property markets in lower-tier cities continue to face significant challenges due to weaker growth fundamentals and severe oversupply issues compared to top-tier cities [8][11]. Additional Insights - The analysis emphasizes that the data presented is specific to primary market transactions (new home sales) and does not encompass the broader secondary market dynamics [1][8]. - The report indicates that despite easing policies, the overall sentiment in the property market remains cautious, particularly in lower-tier cities where the economic fundamentals are weaker [8][11]. This summary encapsulates the critical insights from the conference call regarding the current state and challenges of the property market in China, highlighting the ongoing divergence between different city tiers and the impact of recent policy measures.