Core Viewpoint - The central economic work conference emphasizes the need to stabilize the real estate market in 2025, focusing on policies to control new supply, reduce inventory, and improve supply quality [1][2]. Group 1: Market Conditions - The real estate market in China is entering a critical phase of deep adjustment and structural reshaping in 2025, with the total unsold residential property area reaching 75.606 million square meters as of the end of October, marking an 8-month consecutive decline [2]. - The key to stabilizing the market lies in inventory reduction, which remains a priority for the current "stabilize the real estate market" strategy [2]. Group 2: Inventory Management Strategies - The strategy for inventory reduction focuses on "optimizing existing stock and controlling new supply," with an emphasis on encouraging the acquisition of existing residential properties for use as affordable housing [3]. - Local governments, such as Guangzhou, are actively pursuing the acquisition of existing residential properties to be repurposed for affordable housing, increasing their acquisition efforts [4]. Group 3: Policy Initiatives - The conference highlights the need to deepen the reform of the housing provident fund system to enhance its role in the market, with over 260 new policies introduced since 2025 aimed at increasing loan limits and expanding usage [5]. - The approach to controlling new supply is not merely about reducing land supply but involves optimizing the structure under total control, aligning with the construction of "good houses" [5]. Group 4: Quality Development Focus - The concept of "good houses" is identified as a key focus for high-quality development in the real estate sector, shifting the industry's emphasis from scale expansion to quality enhancement, including aspects like green low-carbon, smart home features, and elderly-friendly designs [5]. - The transition in the real estate sector is clear: moving away from high turnover and high leverage models towards a new phase prioritizing inventory operations and quality [5].

Market Perception & Potential - Retail investors recognized the company's potential, which Wall Street experts missed [1] - The company has the greatest potential to transform real estate buying and selling [2] - The company's potential is considered infinite due to its ability to fix real estate transactions on both the buy and sell sides [2] Industry Comparison & Valuation - The company is compared to Carvana, but with less competition and more upside [3] - The company's multiple should be comparable to Carvana, with hopes of outperforming it [3] Real Estate Market Size - The global residential real estate market is approximately a $289 trillion asset [1]