Hong Kong Stock Concept Tracking| Significant Increase in Real Estate Consulting Visits in Multiple Areas Real Estate Sector may gradually enter beta marketIncluding concept stocks.

Last week, Shanghai announced new real estate policies, releasing seven measures from the aspects of purchase restrictions, housing provident fund, and property tax. After a week, it was found through visits to some real estate agencies and new property sales offices in Shanghai that the real estate market in Shanghai has significantly heated up, with inquiries, visits, and transaction intentions for new and second-hand houses quietly rising. On the first weekend after the announcement of the new real estate policies in Shanghai, it was observed at a new property development in Xuhui Changqiao that the number of visits had reached 2 to 3 times the previous amount, with nearly a hundred appointments made on Sunday, 60% of which were first-time visitors. Wang Qing, Chief Macro Analyst at Orient Jincheng, stated that the key points of real estate policies in 2026 are to continue to support the stabilization of the real estate market and to accelerate the construction of a new model for real estate development to promote high-quality development of the real estate industry. Wang Qing believes that in 2026, stable real estate market policies will be implemented at both the supply and demand ends. In terms of the supply side, the loan quotas for "white-listed" real estate projects have already reached 7 trillion yuan, an increase of 2 trillion yuan from the end of the previous year. It is necessary to guide commercial banks to increase their support for real estate developers in terms of loans, to restore the improvement trend of real estate funds sourcing loans domestically. This not only helps to deliver houses on time but also directly addresses the credit risks faced by real estate companies. According to a research report by Galaxy Securities, the 2026 Government Work Report proposed to "focus on stabilizing the real estate market" and expounded on key work directions in various aspects such as inventory, housing provident fund, affordable housing, urban renewal, "good houses", financing, and new models. As the industry gradually enters a phase of high-quality development, industry valuation may experience overall recovery, with leading real estate companies having the advantages of low financing costs and high market shares in core areas, which may lead to opportunities for overall beta recovery through valuation adjustments. In a research report by CICC, it was mentioned that this round of real estate cycle adjustment has lasted for over four years, and considering recent changes in the supply and policy side, CICC believes that the housing prices in Beijing and Shanghai are expected to stabilize this year. The real estate sector may gradually enter a beta trend, and investors are advised to grasp three types of investment strategies based on risk preference: 1) Allocate to stable targets with obvious beta characteristics; 2) Allocate to structural growth in real estate development, strong product capability, high-quality inventory, and targets with deep valuation discount and potential elasticity; 3) Some private enterprises may return to the market, achieving significant revaluation under oversold valuations. Real estate-related industry chain companies mentioned include CHINA OVERSEAS (00688), C&D INTL GROUP (01908), YUEXIU PROPERTY (00123), GREENTOWN CHINA (03900), SUNAC (01918), LONGFOR GROUP (00960), SINO-OCEAN GP (03377), CHINA VANKE (02202), CHINA RES LAND (01109), and XUHUI HOLDINGS (00884); Property management companies mentioned include CHINA RES MIXC (01209), POLY PPT SER (06049), CHINA OVS PPT (02669), and MIDEA REAL EST (03990). Real estate agencies mentioned include BEKE-W (02423) and CG SERVICES (06098).