Bank of America Securities: The indicators for domestic real estate have weakened to the level that triggers policy introduction, optimistic about CHINA RES LAND, CHINA OVERSEAS, etc

Bank of America Securities published a research report on the domestic property sector, indicating that the market is concerned that the Ministry of Finance may prioritize resources in other areas rather than mortgage subsidies, and questioning whether mortgage subsidies that last only 1 to 2 years can substantially change buyer expectations. The bank believes that the central government's coordinated policies can release strong positive signals, and the current macro indicators have weakened to levels that historically trigger policy implementation.

Considering the uncertainty in the path of profit recovery, the bank prefers developers with better asset quality that can drive continuous growth in net asset value, such as CHINA RES LAND (01109.HK), CHINA OVERSEAS (00688.HK), and C&D INTL GROUP (01908.HK), with target prices of HKD 36, HKD 15, and HKD 18.6, respectively, all rated as "Buy." Additionally, the bank lowered the target price for YUEXIU PROPERTY (00123.HK) from HKD 5 to HKD 4.6, reiterating a "Buy" rating