"Large Banks" CMB International: Expecting a Minor Spring, Maintaining Long-term Optimism on CHINA RES LAND and YUEXIU PROPERTY

Jiao Yin International published a monthly report on the mainland real estate industry. According to preliminary data from CRIC, as the Spring Festival holiday approaches, the total sales of 100 developers on a full-caliber basis fell by 46.5% month-on-month from December's CNY 340.9 billion to CNY 182.2 billion before January 2026. The 20 major listed developers tracked by the bank saw a month-on-month sales decrease of 53.1% in January. Among the top 10 developers by sales in January, 9 are state-owned enterprises, with Poly Developments ranking first.

According to the 70 large and medium-sized cities' commodity residential price index released by the National Bureau of Statistics, the new commodity residential price index in December fell by 3% year-on-year and 0.4% month-on-month, while the second-hand commodity residential price index fell by 5.4% year-on-year and 0.7% month-on-month.

Jiao Yin International stated that it expects policies to continue to be favorable in 2026, with local two sessions being held successively. The five-dimensional main line of "stabilizing the market, optimizing supply, promoting leasing, pushing for renewal, and preventing risks" runs through it all. The bank still expects demand in the secondary market to continue to improve and outperform the primary market. In the medium to long term, the bank remains optimistic about CHINA RES LAND (01109.HK) and YUEXIU PROPERTY (00123.HK), rating them as "Buy," as both companies have performed excellently in sales over the past few years and have stronger execution capabilities in sales