Summary of Conference Call on China Property Market Industry Overview - **Industry**: China Property - **Date**: August 3, 2025 - **Key Focus**: Home price trends, sales performance, and market sentiment in the property sector Key Points Home Price Trends - Secondary home prices in major cities experienced a slight decline in July, with a month-on-month (m-m) drop of **1.1%** and a year-on-year (y-y) decrease of **9.8%** across approximately **50 sample cities** [2] - **87%** of the tracked cities reported m-m price decreases, slightly down from **93%** in June [2][17] - Secondary listing prices fell **0.5%** m-m in July, with **55%** of cities showing downward adjustments [2][18] Listings and Sales Performance - Total listings increased by **0.6%** m-m in July, with **76%** of cities recording increases, compared to **71%** in June [3] - New secondary listings softened by **5%** m-m, with only **23%** of cities showing increases [3] - Visits to agent shops dropped **7%** m-m, indicating a seasonal trend, but y-y visits were up **20%** [4][19] Market Sentiment and Future Expectations - The Politburo meeting in July showed little focus on the property industry, suggesting muted policy responses until significant price declines are observed [5] - High inventory levels in both primary and secondary markets, combined with softening sales, are expected to maintain downward pressure on home prices [5] - Anticipated weak home sales in the second half of the year could further exacerbate price declines [5] Investment Recommendations - A defensive and selective investment approach is advised due to weakening indicators affecting developers' sales, margins, and liquidity [6] - Recommended stocks include: - **CR Land (1109.HK)** and **CR Mixc (1209.HK)** as consumption beneficiaries - **C&D (1908.HK)** and **Greentown Management (9979.HK)** for high dividend yields [6] Risks and Considerations - Risks to upside include stronger-than-expected contracted sales and accelerated openings of new malls [28][30] - Risks to downside involve weaker-than-expected sales and slower land acquisitions [28][30] Additional Insights - The report highlights the importance of monitoring market conditions and adjusting investment strategies accordingly, given the current volatility in the property sector [5][6]

Summary of the Conference Call on China Property Market Industry Overview - **Industry**: China Property - **Date**: August 3, 2025 - **Key Focus**: Home price trends, sales performance, and market sentiment in the Chinese property sector Key Points Home Price Trends - Secondary home prices in major cities experienced a slight decline in July, with a month-on-month (m-m) drop of 1.1% and a year-on-year (y-y) decrease of 9.8% across approximately 50 tracked cities [2][15] - 87% of the cities reported m-m price decreases, slightly better than the 93% recorded in June [2][17] - Secondary listing prices fell by 0.5% m-m in July, with 55% of cities showing downward adjustments [2][16][18] Sales Performance - Total listings increased by 0.6% m-m in July, with 76% of cities reporting increases, compared to 71% in June [3] - New secondary listings softened by 5% m-m, indicating a potential slowdown in market activity [3] - Visitations to agent shops dropped by 7% m-m but increased by 20% y-y, suggesting seasonal trends affecting market engagement [4][19] Market Sentiment and Future Outlook - The Politburo meeting in July showed little focus on the property industry, indicating a muted policy response until significant price declines are observed [5] - High inventory levels in both primary and secondary markets, coupled with softening sales, are likely to maintain a cautious sentiment among residents regarding home prices [5] - Expectations for home sales in the second half of the year remain weak, with potential further declines in prices anticipated [5] Investment Recommendations - A defensive and selective investment approach is advised due to weakening leading indicators affecting developers' sales, margins, and liquidity [6] - Suggested stocks include: - **Consumption beneficiaries**: CR Land (1109.HK) and CR Mixc (1209.HK) - **High-dividend-yield plays**: C&D (1908.HK) and Greentown Management (9979.HK) [6] Additional Insights - The report highlights the importance of monitoring the competitive pricing of secondary home sales, which may gain market share due to fewer new primary home launches [4] - Analysts maintain a cautious view on the property market, emphasizing the need for quality investments amidst ongoing challenges [6] Conclusion The Chinese property market is currently facing significant challenges, with declining home prices and weak sales performance. Investors are advised to adopt a defensive strategy, focusing on quality companies that can weather the current market conditions.