Group 1 - The Hainan Provincial Department of Housing and Urban-Rural Development announced the cancellation of the ordinary and non-ordinary residential standards, which will affect land value-added tax and housing transaction deed tax according to national and provincial policies [1][2] - The notification states that taxpayers selling ordinary standard residential properties with an appreciation not exceeding 20% of the deductible project amount will continue to be exempt from land value-added tax [1] - Families with two or more children applying for commercial loans to purchase residential properties will have their housing count reduced by one if they already own a property in the same city or county [1] Group 2 - The province will steadily advance the acquisition of existing commercial housing for use as affordable housing, and for the renovation of urban villages and dilapidated houses [2] - The use of housing provident fund gains to acquire a certain amount of existing commercial housing for public rental housing will continue, and there will be plans to utilize affordable housing re-loans for this purpose [2] - In areas with high inventory periods for commercial housing, local governments are encouraged to prioritize the "purchase instead of construction" method for resident relocation during urban renewal [2]

Investment Rating - The report maintains a "Neutral" rating for both the real estate and building materials sectors [2][4]. Core Insights - Recent policy optimizations in various cities are expected to stimulate local housing market demand, with more cities likely to introduce new stimulus measures [4][27]. - The real estate sector has seen a slight decrease in sales momentum over the past two months, but there is optimism for a rebound in sales and improvement in the fundamentals of real estate companies [4][27]. - In the building materials sector, particularly cement, there is a strong inclination for price increases due to reduced inventory pressure and improved demand from infrastructure projects [5][48]. Summary by Sections Real Estate Sector Overview - As of August 14, 2025, the Shenwan Real Estate Index has increased by 3.99% over the past two weeks, outperforming the CSI 300 Index by 1.07 percentage points [14]. - The report highlights that the sales volume in key cities has increased by 10.8% year-on-year, indicating a recovery in market activity [24]. - Key companies to watch include Poly Developments (600048), Binjiang Group (002244), and China Merchants Shekou (001979), which are expected to perform well in the current market environment [27]. Building Materials Sector Overview - The Shenwan Building Materials Index has risen by 1.77% over the past two weeks, with a year-to-date increase of 13.38% [28]. - Cement prices are expected to stabilize and potentially increase due to production cuts and rising demand from housing and infrastructure projects [5][48]. - Recommended companies in the cement sector include Conch Cement (600585), Taipai Group (002233), and Huaxin Cement (600801), which are seen as having strong fundamentals and attractive dividend yields [48]. Key Data Points - The average price of cement in the national market is currently 316 RMB/ton, reflecting a slight decline due to weak demand [35]. - The report notes that the average price of flat glass has been under pressure, with production rates remaining low across various regions [40]. - The introduction of a fiscal subsidy policy for personal consumption loans is expected to boost demand for home improvement and building materials [49].

Core Viewpoint - Beijing's new real estate policy, effective from August 8, allows unlimited purchases of commodity housing outside the Fifth Ring Road, while still maintaining certain qualification requirements for buyers [1][3]. Group 1: Policy Adjustments - The new policy primarily focuses on the area outside the Fifth Ring Road, where a significant portion of the housing inventory is located. Current statistics show that 81.4% of new residential inventory and about 50% of second-hand homes are situated outside this area [3]. - The policy aims to accelerate the market absorption in the Fifth Ring Road area by allowing more families with the ability and willingness to buy homes to enter the market, thereby optimizing inventory structure [3][5]. Group 2: Housing Fund Support - The policy includes measures to enhance housing fund loan support, broadening the definition of first-time homebuyers. Individuals without housing in the city or those who have previously used their housing fund loans can now qualify for first-time homebuyer benefits [5]. - The maximum loan amount for second homes has been increased to 1 million yuan, with a minimum down payment ratio of 30%. Additionally, for every year of housing fund contributions, the loan limit increases by 15,000 yuan [5]. Group 3: Market Impact - The new policy is expected to attract more buyers to the Fifth Ring Road area, leading to an increase in project construction and the availability of second-hand homes in the market [3][7]. - The adjustments are anticipated to alleviate inventory pressure, stimulate economic activity, facilitate population dispersal, and promote regional collaboration, contributing to the stable and healthy development of the real estate market and sustainable urban growth [7].

Core Viewpoint - The recent policy adjustment in Beijing's real estate market aims to promote stable and healthy development while better meeting residents' housing improvement needs and effectively utilizing market mechanisms [1][2][3] Group 1: Policy Adjustments - The most notable change allows residents to purchase an unlimited number of properties outside the Fifth Ring Road, provided they meet certain conditions [1][2] - The policy reflects a targeted approach to real estate regulation, differentiating between areas inside and outside the Fifth Ring Road to facilitate market entry for capable and willing families [2] Group 2: Market Dynamics - Current statistics indicate that 81.4% of new residential properties and approximately 50% of second-hand homes are located outside the Fifth Ring Road, highlighting the need for policy adjustments in this area [2] - In the first seven months of this year, over 80% of new residential sales and more than 50% of second-hand home transactions occurred outside the Fifth Ring Road, indicating a shift in market activity [2] Group 3: Financial Support Measures - The new policy includes increased support for housing provident fund loans, broadening the definition of first-time homebuyers and raising the maximum loan limit for second homes to 1 million yuan [3] - The policy allows for a lower down payment for families previously classified as second-home buyers, effectively reducing the barriers to homeownership [3] Group 4: Expected Outcomes - The adjustments are expected to alleviate inventory pressure, stimulate economic growth, relieve population density in central areas, and promote regional collaboration [3]

Core Viewpoint - Beijing has optimized its real estate purchase policies, allowing residents to buy unlimited properties outside the Fifth Ring Road, aiming to reduce housing inventory and stabilize market expectations [1][2]. Policy Adjustments - The new policy allows Beijing residents and non-residents who have paid social insurance or individual income tax for at least two years to purchase unlimited properties outside the Fifth Ring Road, compared to previous restrictions [1][2]. - The aim is to activate potential demand for multiple property purchases, such as for elder care, children's education, and improved living conditions [2]. Market Conditions - As of June, Beijing's new housing price index fell by 0.3% month-on-month and 4.1% year-on-year, while the second-hand housing price index dropped by 1% [2]. - New housing inventory stood at 9.818 million square meters, a year-on-year decrease of 8.2%, with a 15-month absorption cycle, although over 80% of this inventory is located outside the Fifth Ring Road [2]. Public Fund Policy Changes - The new policy broadens the criteria for first-time homebuyers using public funds, allowing those with one cleared loan to qualify as first-time buyers [3][4]. - The maximum loan amount for second homes has increased from 600,000 to 1 million yuan, with special provisions for families with multiple children or green buildings [3][4]. Financial Accessibility - The adjustments aim to lower the barriers and costs of home purchases, significantly increasing loan amounts and reducing monthly payments for buyers [4][5]. - The changes are designed to activate dormant public fund resources, supporting both first-time and upgrading homebuyers [4][5].

Core Viewpoint - Beijing has optimized its real estate purchase policies, allowing residents to buy unlimited properties outside the Fifth Ring Road, aiming to reduce housing inventory and stabilize market expectations [1][2]. Policy Changes - The new policy allows Beijing residents and non-residents who have paid social insurance or individual income tax for at least two years to purchase unlimited properties outside the Fifth Ring Road, compared to previous restrictions of two properties for residents and one for non-residents [1][2]. - The aim is to activate potential demand for multiple properties, such as for elder care, children's education, and improved living conditions due to job relocations [2]. Market Conditions - As of June, the new housing price index in Beijing fell by 0.3% month-on-month and 4.1% year-on-year, while the second-hand housing price index dropped by 1% [2]. - New housing inventory stood at 9.818 million square meters, a year-on-year decrease of 8.2%, with a de-stocking cycle of 15 months, predominantly located outside the Fifth Ring Road [2]. Public Fund Policy Adjustments - The new policy broadens the criteria for first-time homebuyers using public funds, allowing those with one cleared loan to qualify as first-time buyers, and increases the loan limit for second homes from 600,000 to 1 million yuan [3][4]. - The loan coefficient for public fund contributions has increased, allowing borrowers to access more funds with shorter contribution periods [4]. Implications for Housing Demand - The adjustments aim to lower the barriers and costs of home purchases, thereby stimulating potential demand, especially among first-time buyers and families looking to upgrade their living conditions [4][5]. - The policy reflects a shift towards more targeted measures to activate the housing market's internal dynamics, focusing on supporting green building development and families with multiple children [5].

Group 1 - The new housing policy in Beijing, implemented on August 9, focuses on optimizing purchase restrictions and enhancing public housing fund support [1][3] - The policy removes the limit on the number of properties for eligible residents purchasing homes outside the Fifth Ring Road, significantly increasing public housing loan support [1][3] - The policy aims to alleviate inventory pressure in the housing market, particularly in areas outside the Fifth Ring Road, which accounts for over 80% of new residential sales from January to July [3] Group 2 - Following the implementation of the new policy, there was a notable increase in property viewings, with some projects experiencing a 20% to 40% rise in visits [4] - The number of inquiries for new homes increased by 14.1% and for second-hand homes by 14.5%, indicating a resurgence in market interest [4] - Banks quickly adapted to the new policy, with state-owned banks starting to process housing loans under the revised public housing fund guidelines, benefiting second-home buyers significantly [4]

Core Insights - The four major first-tier cities in China—Beijing, Shanghai, Guangzhou, and Shenzhen—are adjusting their housing purchase restrictions, which has garnered significant industry attention [1][3] - Guangzhou was the first to fully lift its purchase restrictions in September last year, leading to a notable increase in market activity, with a 9% year-on-year growth in second-hand residential transactions from January to July 2025 [1] - Beijing's recent policy adjustment allows eligible families to purchase an unlimited number of homes outside the Fifth Ring Road, aiming to stabilize the market and meet the housing needs of capable residents [1][3] Policy Adjustments - Beijing's housing policy changes are seen as a signal for potential further adjustments in other cities, with a focus on balancing market demand and preventing overheating [1][3] - In Shenzhen, non-resident buyers still need to provide proof of tax or social security contributions for a year in specific areas, while Shanghai has relaxed conditions for non-residents buying homes outside the outer ring but maintains stricter requirements for inner ring purchases [1][3] Market Dynamics - The area outside the Fifth Ring Road in Beijing has become a key player in the real estate market, accounting for over 80% of new residential sales and over 50% of second-hand sales from January to July this year [3] - The policy changes are expected to further activate the market outside the Fifth Ring Road and alleviate inventory pressures in high-stock areas [3] - Future adjustments in Shanghai and Shenzhen are anticipated, with an emphasis on increasing housing fund support and addressing the needs of specific demographics, such as single young adults and residents of older communities [3]

Investment Rating - The report maintains an "Outperform" rating for the real estate sector [1] Core Insights - The second-hand housing market is under increasing pressure, with Beijing's second-hand housing transaction area at 266,900 square meters, a week-on-week decrease of 1.14%, nearing levels seen in May 2024. Shanghai's second-hand housing transaction area is 366,500 square meters, close to levels in October 2024 [5][10] - The targeted easing of purchase restrictions outside the Fifth Ring Road in Beijing is expected to help reduce inventory in that area, signaling a positive outlook. Continuous monitoring of policy developments in Shanghai and Shenzhen is advised [5] - In the new housing market, developers are expected to increase supply towards the end of August to prepare for the "Golden September." High-quality products in core areas are likely to see stable sales, benefiting brands like China Resources Land, Binjiang Group, and Jianfa International Group [5] - The real estate sector outperformed the market indices, with the Shanghai Composite Index rising by 2.11%, the CSI 300 Index by 1.23%, and the real estate sector by 2.16%, outperforming the Shanghai Composite by 0.05 percentage points and the CSI 300 by 0.93 percentage points [10] Market Performance - The report highlights that the real estate sector has shown resilience, with key A-share real estate stocks such as Heimu Dan, *ST Rongkong, and Yatong shares leading in gains [10] - In the Hong Kong market, companies like Huayin International Holdings, Shun Tak Holdings, and Hongyang Real Estate also showed significant gains [10] - The report notes that the transaction area for new homes in 30 major cities decreased week-on-week, with a cumulative year-on-year decline of 3.71% [5][39] Policy Changes - Beijing's adjustment to purchase restrictions allows eligible families to buy an unlimited number of properties outside the Fifth Ring Road, which includes both new and second-hand homes [5] Sales Trends - The report indicates that new home sales in 30 major cities have decreased, with a total sales area of 1.2645 million square meters last week, reflecting a year-on-year decline of 3.71%. First-tier cities saw a slight increase in sales, while second-tier cities experienced a more significant decline [5][39] Company Valuations and ETF Performance - The report provides a detailed valuation of key real estate companies, highlighting their market capitalization and expected earnings per share (EPS) for 2025 to 2027 [85] - It also reviews the performance of real estate ETFs, noting weekly returns and net inflows for various funds [88]

Core Points - Beijing has implemented a significant relaxation of housing purchase restrictions, particularly affecting properties outside the Fifth Ring Road, allowing eligible buyers to purchase an unlimited number of homes [3][9] - The new policy is expected to stimulate market activity, especially in the outer areas where over 80% of new residential sales occurred in the first seven months of the year [7][9] - The immediate response to the policy has been positive, with increased foot traffic in sales offices and a surge in inquiries from potential buyers [4][5] Policy Changes - The new regulations allow Beijing residents and non-residents with two years of social security or income tax payments to buy homes outside the Fifth Ring without limit, while restrictions within the Fifth Ring remain unchanged [3][4] - This marks the most substantial easing of restrictions since previous adjustments made last year, indicating a shift in the government's approach to housing market regulation [3][9] Market Impact - The policy is anticipated to boost transactions, particularly for high-inventory areas, with an estimated 80% of new projects likely to benefit from the changes [7][8] - Historical data shows that previous policy relaxations led to significant increases in transaction volumes, suggesting a similar outcome may occur following this latest adjustment [7][8] Buyer Behavior - There has been a noticeable increase in buyer interest, with reports of long wait times at sales offices and a high volume of consultations with real estate agents [4][5] - The new policy also opens opportunities for individuals looking to upgrade from existing properties, potentially enhancing the overall transaction chain in the market [8][9] Industry Sentiment - Real estate professionals express cautious optimism, noting that while the policy will likely stimulate demand, the overall market dynamics remain complex, with high inventory levels and prevailing market hesitance [8][9] - Analysts suggest that the policy reflects a gradual adjustment strategy by the government, aimed at balancing market stability and growth [9]