Summary of Key Points from the Conference Call Industry Overview - The report focuses on the **Chinese real estate market**, highlighting recent trends in property sales and market activities during week 49 of 2025. Core Insights and Arguments 1. **Policy Support**: The State Council continues to support urban renewal initiatives, aiming to stabilize the property market and promote high-quality housing construction and development [1][2] 2. **Market Activity Decline**: Overall market activities have slowed, with primary sales volume down **16% week-over-week (wow)** and secondary sales down **5% wow**. Subscription-based secondary sales also fell by **5% wow** [2][5] 3. **Price Adjustments**: The pressure on secondary prices has eased slightly, with listings that experienced price cuts decreasing by **18% wow**, resulting in a ratio of listings with price cuts to those with price increases at **15.5X** compared to **17.3X** in November [2][5] 4. **Sales Performance**: New home sales volume averaged **-16% wow** and **-44% year-over-year (yoy)**, with tier-3 cities and the Yangtze River Delta (YRD) outperforming other tiers. Secondary transactions were down **5% wow** and **-49% yoy** [5][27] 5. **Year-to-Date (YTD) Performance**: Primary Gross Floor Area (GFA) sold was down **14% yoy**, with tier-3 cities and Central & Western regions outperforming. Secondary GFA sold was up **2% yoy** [5][23] 6. **Inventory Levels**: Inventory increased by **0.1% wow** but decreased by **3.6% from the end of 2024**, with inventory months at **27.5** compared to an average of **26.7** in November [37][39] 7. **Valuation Trends**: Offshore developers saw an average share price decline of **2% wow**, while onshore developers averaged **-3% wow**. Offshore coverage trades at a **41% discount** to end-2025 estimated net asset value (NAV) [49][50] Additional Important Insights 1. **Completion Rates**: The GSPC tracker indicates a high single-digit percentage decline in completions for November 2025, with expectations of a **30%-40% yoy decline** in new starts [15][42] 2. **Home Appliance Sales**: Anticipated to decline yoy in November 2025 based on secondary sales trends in approximately 20 cities [15] 3. **Market Sentiment**: The average Centraline Salesman Index (CSI) was down **2.7 percentage points (pp) wow** and **8.2 pp yoy**, indicating a negative sentiment among agents regarding property prices [31][33] 4. **Seller Expectations**: The average Centraline Seller Asking Index (CAI) increased by **0.3 pp wow** but decreased by **10.9 pp yoy**, reflecting mixed expectations among sellers [34][36] This summary encapsulates the key points from the conference call, providing insights into the current state of the Chinese real estate market, including sales performance, inventory levels, and market sentiment.