Summary of the Conference Call on China Property Market Industry Overview - **Industry**: China Property - **Survey Conducted**: October 24-28, 2025, with over 2,000 residents across Tier 1 to Tier 4 cities [7][11] Key Findings Housing Price Outlook - **Weaker Sentiment**: A net 42% of respondents expect home prices to fall in the next 12 months, up from 33% in July [2][15] - **Tier 1 Cities**: Confidence is particularly low, with a net 67% anticipating price declines, compared to 50% in July and 39% in April [2][15] - **Tier 2 Cities**: A net 45% expect price drops, an increase from 23% in July [15] Home Selling Plans - **Urgency to Sell**: 41% of potential sellers plan to sell within the next six months, down from 44% in July [3][18] - **Willingness to Accept Losses**: 52% of sellers are willing to take a loss on their sale, slightly down from 56% in July [3][19] - **Listing Behavior**: Increased listing volume with lower prices in the secondary market [3] Home Purchase Plans - **Weak Purchase Intent**: Only 48% of respondents are likely to consider buying property in the future, the lowest since the survey began in Q3 2023 [4][12] - **Extremely Likely Buyers**: Only 15% are "extremely likely" to purchase, down from 16% in July [4][12] - **Short-term Expectations**: Only 2% expect to make a purchase in the next 12 months [4][12] Investment Recommendations - **Cautious on POEs**: The recent industry pullback presents a potential entry point for quality State-Owned Enterprises (SOEs) [5] - **Preferred Stocks**: - **CR Land (1109.HK)**: Long-term market consolidator with attractive dividend yields [5] - **C&D International Investment Group Ltd (1908.HK)**: Strong fundamentals with a favorable valuation [26] - **Seazen Holdings Company Ltd (601155.SS)**: Noted for robust mall rental and private REIT divestment [5][27] Additional Insights - **Negative Feedback Loop**: Concerns about income and cautious buyer sentiment may exert further downward pressure on home prices [4] - **Market Dynamics**: The overall housing price outlook remains weak, particularly in Tier 1 cities, indicating a challenging environment for both buyers and sellers [17] Conclusion The survey indicates a significant decline in confidence regarding home prices in China, especially in Tier 1 cities. The urgency among sellers to divest their properties, coupled with weak buyer sentiment, suggests a challenging market ahead. Investment opportunities may arise in quality SOEs amidst the current market pullback.

Summary of the AlphaWise China Property Survey July 2025 Industry Overview - **Industry**: China Property - **Survey Conducted**: July 14-16, 2025 - **Sample Size**: 2,060 residents across Tier 1 to Tier 4 cities - **Margin of Error**: ±1.7% at 90% confidence level [6][7] Key Findings Housing Price Outlook - **Worsening Sentiment**: A net 33% of respondents expect housing prices to fall in the next 12 months, a slight improvement from 36% in April [2][15] - **Tier 1 Cities**: 50% of respondents in Tier 1 cities anticipate a decline in housing prices, compared to 45% in Tier 2 cities [2][15] Home Selling Trends - **Urgency to Sell**: 44% of potential home sellers plan to sell within the next six months, down from 47% in April [3][18] - **Willingness to Accept Losses**: 56% of homeowners are willing to take a loss on their sale, up from 43% in April. Only 18% insist on selling above their purchase price, down from 21% [3][19][22] Home Purchase Plans - **Weak Purchase Intentions**: 51% of respondents are likely to consider buying property in the future, a slight increase from 49% in April. However, only 16% are "extremely likely" to purchase, up from 15% [4][11] - **Short-term Expectations**: Only 3% expect to make a purchase within the next 12 months, indicating continued caution among potential buyers [4][11] Investment Recommendations - **Defensive Strategy**: Given the weak physical market expected to persist into Q3, a cautious and selective investment approach is recommended [5] - **Stock Suggestions**: - **Consumption Beneficiaries**: CR Land (1109.HK) and CR Mixc (1209.HK) - **High-Dividend-Yield Plays**: C&D (1908.HK) and Greentown Management (9979.HK) [5] Additional Insights - **Negative Feedback Loop**: The combination of increased inventory, weak purchase plans, and homeowners' willingness to sell at a loss may prolong declines in property sales and home prices into Q3 [1][4] - **Market Dynamics**: The survey reflects a broader trend of declining confidence in the property market, particularly in major urban centers [2][17] Conclusion The AlphaWise survey indicates a continued decline in sentiment regarding the Chinese property market, with homeowners increasingly willing to accept losses and potential buyers remaining cautious. Investment strategies should focus on defensive positions and companies with strong visibility in the current market environment.