According to a research report published by UBS, “Qiushi” magazine published a review article on the mainland property market entitled “Improving and Stabilizing Real Estate Market Expectations” at the beginning of the new year, pointing out that the real estate industry plays an important role in China's economic development. The news led domestic housing stocks to rise by up to 7% yesterday. UBS believes that there isn't much new information in the article. The only difference is that it reaffirms the importance of the real estate industry to the economy. It differs from the market's view that the importance of the property market will decline after the recent Politburo meeting. It is hoped that the authorities may introduce policies to stabilize rent levels and close the gap between rental returns and mortgage interest rates, thereby boosting the market entry atmosphere. It is estimated that the authorities may cut mortgage interest rates by 40 basis points this year. In terms of stock selection, China Resources Land, which favors a shift in business model, and China Resources Vientiane Life, which is driven by the recovery of high-end shopping malls, all gave it a “buy” rating.

According to a research report published by UBS, “Qiushi” magazine published a review article on the mainland property market entitled “Improving and Stabilizing Real Estate Market Expectations” at the beginning of the new year, pointing out that the real estate industry plays an important role in China's economic development. The news led domestic housing stocks to rise by up to 7% yesterday. UBS believes that there isn't much new information in the article. The only difference is that it reaffirms the importance of the real estate industry to the economy. It differs from the market's view that the importance of the property market will decline after the recent Politburo meeting. It is hoped that the authorities may introduce policies to stabilize rent levels and close the gap between rental returns and mortgage interest rates, thereby boosting the market entry atmosphere. It is estimated that the authorities may cut mortgage interest rates by 40 basis points this year. In terms of stock selection, China Resources Land, which favors a shift in business model, and China Resources Vientiane Life, which is driven by the recovery of high-end shopping malls, all gave it a “buy” rating.