Sinolink: The basic fundamentals of the real estate market are continuing to improve, supporting strong calls for leading companies.

Sinolink released a research report stating that in terms of fundamentals, recent house viewings and real-time transaction data have significantly improved, reflecting the potential purchasing power in the current market. There is a possibility that the property market may see a "mini spring" trend, and the industry turning point may be approaching gradually. As for real estate companies, the rise in land transaction premium rates reflects a positive turnaround in their land acquisition enthusiasm. In addition to this, recent news such as Beike entering the market and Poly announcing plans to increase valuation may boost sentiment in the real estate sector. It is also important to pay attention to the potential stimulus of science and technology companies, represented by the "Hangzhou Six Small Dragons", on the demand in the Hangzhou region. Sinolink's main points are as follows: Key cities' house viewings and real-time transactions have rebounded significantly, indicating a potential "mini spring" trend in the property market. According to Beike's disclosure, the third week after the Spring Festival (February 17th to February 23rd) saw a rise in house viewings in key cities, with a week-on-week increase of 8.3% in the seven major cities, among which Shanghai, Shenzhen, Hangzhou, and Suzhou saw an increase of over 10%. In absolute values, some cities have exceeded the high levels of house viewings in the fourth quarter of last year, with Shanghai's house viewings in the third week after the Spring Festival being 16.9% higher than last year's peak. According to real-time transaction data from Iceberg Index, the transaction volumes in Shenzhen, Hangzhou, and Chengdu have reached seasonal highs in nearly four years. Considering that no new stimulating policies have been introduced recently, the surge in house viewings and real-time transactions reflects the potential buying demand, with still a large room for release. It is expected that the "mini spring" trend in the property market will be realized in March this year. Land auction premium rates hit a recent high, and real estate companies' land acquisition enthusiasm is rising. According to data from China Real Estate Research Institute, the heat of land transactions in 2025 has significantly increased. In terms of average price, the average transaction price per square meter in the eighth week of 2025 (February 17th - February 23rd) was 9510 yuan/sqm, significantly higher than the levels of the fourth quarter of 2024. Moreover, in terms of premium rates, compared to the average premium rates of land transactions on a weekly basis in 2024, none exceeded 10%, but since entering 2025, there have been three weeks with average premium rates exceeding 10%, with last week's data exceeding 20%, marking a new high in almost a year. This reflects real estate companies gradually recovering their land acquisition enthusiasm, driving the land market to warm up, and it is expected that the increase in average land transaction prices will drive up new house prices in the future. Beike entering the market soon, Poly announcing a plan to increase valuation, the industry's leaders welcoming positive news, boosting industry confidence. The Hong Kong stock market's list is adjusted on March 10th, with Beike meeting the daily average market value condition during the observation period (July 1st, 2024 - December 31st, 2024). Moreover, after the new policy was introduced at the end of September last year, the turnover quickly reached the total turnover condition, thereby meeting the requirements for inclusion in the Hong Kong stock market. With the positive factors such as the revaluation of Hong Kong stocks, the entry of Beike, the gradual stabilization of the industry beta, the continuous realization of the industry's alpha, policy expectations from the Two Sessions, and others, Beike's stock price continues to rise, boosting sentiment in the real estate sector. On February 25th, Poly Developments and Holdings Group announced plans to: 1) stabilize operations and improve efficiency; 2) actively carry out diversified capital market financing; 3) adhere to generous, sustainable, and stable dividends; 4) conduct timely repurchases, purchases, and other methods to protect shareholders' returns. Currently, listed real estate companies are large-scale trading below their net asset value, and as a leading real estate company, Poly, in response to the demand for increasing valuation and market cap management, may be followed by more state-owned developers in the future. Risk warnings Loose policies may not have a good impact on market stimulation; weak recovery in third and fourth-tier cities; real estate companies may face debt defaults.