Bank of America Securities: The recovery of the domestic real estate market needs to rely on its own strength. Preferred stock: China Resources Land Limited (01109).

Bank of America Securities released a research report stating that it maintains a constructive view on the Chinese real estate industry, but believes that the recovery momentum has shifted from policy stimulus to a slower, sustained self-recovery, with the process possibly being uneven. However, it is expected that transaction volume in April will be much higher than the levels at the end of last year and the first two months of this year, indicating a longer recovery cycle rather than the rapid cooling seen last year. Considering the improvement in supply and demand dynamics, including the decrease in second-hand housing listings, the possibility of a significant decline in house prices in 2026 is small. It is expected that second-hand house prices in Shanghai, Shenzhen, and Beijing will stabilize in the second half of the year. Due to uneven recovery, investors may remain cautious in the short term. The bank prefers CHINA RES LAND (01109) for its long-term growth potential in investment properties, and is optimistic about CHINA OVERSEAS (00688) and C&D INTL GROUP (01908) benefiting from upgrading demand, believing in their good earnings visibility for the 2027 fiscal year. The bank has lowered its target price for China Overseas Property (02669) from HK$4.6 to HK$4.4, maintaining an "underperform" rating. The bank has reduced its target price for ONEWO (02602) from HK$20 to HK$19, maintaining a "neutral" rating. The bank has lowered its target price for POLY PPT SER (06049) from HK$37 to HK$36, maintaining a "neutral" rating.