$CHINA RES LAND(01109.HK)$Sunac China(01918.HK)$Vanke(000002.SZ)

I don't follow real estate closely, but the relaxation of the three red lines and the delivery of pre-sold homes policy is a significant positive.

Last year, the issues triggered by the delivery of pre-sold homes were already highly controversial.

It's like banks facing a run, and the authorities demanding that payments must be guaranteed—the intention is good.

But when the task falls to local governments, their understanding becomes:

Okay, I must guarantee payments for local depositors—local banks' funds must first ensure all local depositors can withdraw, and if there's no extra money, it can't be transferred to other regions.

This directly locks up funds across regions, making it even harder for areas already struggling to make payments, while places with ample funds start early withdrawals due to emotional reactions…

Now that relaxation has begun, it shows a shift in the central government's thinking. On the other hand, the demand for delivering pre-sold homes has also been somewhat absorbed.

But the fundamentals of struggling developers are very poor, even posing a danger to management and controlling shareholders, like Vanke and Evergrande.

A hypothetical scenario for a turnaround: If this company were sold to you at its current market cap, would you take it?

At this stage, do Sunac and Vanke have acquisition value?

If you don’t want to be the major shareholder of this company, then you definitely shouldn’t be a minor shareholder 🙃🙃🙃