Summary of Conference Call on China Property Market Industry Overview - The conference call focused on the **China Property** market, specifically the performance of major developers in February 2025, as tracked by **CRIC** [1][2]. Key Points Sales Performance - **Contracted sales** of 30 major developers dropped **16% year-on-year (y-y)** in February 2025, following a low base [1]. - The **top 50 and top 100 developers** saw attributable sales growth of **3% and 2% y-y**, respectively, compared to declines of **-4% and -1% in January** [2]. - Year-to-date (YTD) sales decline for the top developers narrowed to **-1% and 0% y-y** in the first two months of 2025, contrasting with **+5% and +2% in Q4 2024** [2]. Divergence in Performance - **State-Owned Enterprises (SOEs)** outperformed others, with notable growth from **Yuexiu (+63%)**, **COLI (+55%)**, **CR Land (+47%)**, and **C&D (+36%)** y-y [3]. - Conversely, some developers like **Zhongliang**, **Zhongnan**, and **Seazen** experienced declines exceeding **50% y-y** [3]. - Semi-SOE developers such as **Gemdale** and **Vanke** also reported weak performance, with declines of **-45% and -27% y-y**, respectively [3]. Future Outlook - Sales for major developers are expected to weaken y-y in the coming months due to reduced saleable resources and a higher base [4]. - The housing policy response is anticipated to remain reactive, with limited demand-side stimulus until housing prices stabilize [4]. - There is a need for faster policy implementation, particularly regarding funding and inventory buybacks, to bolster homebuyer confidence [4]. Investment Recommendations - The industry performance may hinge on sustained sales and home price recovery, with mixed signals observed in the physical market [5]. - The recommendation is to focus on **defensive SOE players** with substantial saleable resources in tier 1 cities, such as **CR Land (1109.HK)**, **Greentown (3900.HK)**, and **Yuexiu (0123.HK)** [5]. Additional Insights - The **fragility of residential sentiment** is highlighted, as reflected in declining secondary listing prices [5]. - The **aggregate sales** for the top developers showed a **-1% y-y** change, with a **-5% month-on-month (m-m)** decline in February 2025 [9]. Conclusion - The China Property market is facing challenges with declining sales and a reactive policy environment. However, SOEs are showing resilience, and strategic investments in top-tier developers may present opportunities amidst the volatility.