Citi Lifts CN Home Sector to Positive on Strong May Day Sales; Top Picks CHINA OVERSEAS , CHINA JINMAO

Citi released a report noting that market data show during the May Day Golden Week in Mainland China, secondary home transactions in 25 key cities rose 31% YoY. Cities with YoY growth of over 60% in secondary transactions included Dongguan, Ningbo, Nanchang, Suzhou and Xuzhou; those with growth of over 50% included Guangzhou, Xiamen and Foshan; and those with growth of over 30% included Wuxi, Xian, Hefei and Wuhan.The report stated that amid a market recovery, 16 cities have successively rolled out a series of property easing policies. In terms of primary home sales, Tianjin rose 10% YoY, Wuhan surged 120% YoY and Hefei increased 70% YoY, while Chengdu, Xian and Jinan recorded relatively weak performance in May Day primary home sales.The bank said that considering the higher base in 1H2025 and the lower base in 2H2025, it expects the strong YoY sales momentum to extend into 2H2026. Following more encouraging market data seen in March and April, market confidence has gradually improved, and the sector view on the CN Home industry has been upgraded to "Positive".Citi believes that under policy support, a gradual recovery in key cities represents the most favorable scenario for the property sector, and it selects stocks based on land acquisition growth in 2025 and ample sellable resources in 2026. Its top picks are CHINA OVERSEAS (00688.HK) +0.510 (+3.407%) Short selling $131.79M; Ratio 20.252% and CHINA JINMAO (00817.HK) +0.070 (+3.867%) Short selling $5.14M; Ratio 6.100% , both of which achieved sales growth in the first four months of 2026, as well as CHINA RES LAND (01109.HK) +0.160 (+0.453%) Short selling $148.89M; Ratio 25.287% , POLY PROPERTY (01109.HK) +0.160 (+0.453%) Short selling $148.89M; Ratio 25.287% and SEAZEN (01030.HK) +0.020 (+0.877%) Short selling $1.13M; Ratio 6.355% . It is also positive on BEKE-W (02423.HK) +0.220 (+0.459%) Short selling $120.54M; Ratio 27.519% , supported by growth in secondary transactions since April. (ha/a)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-05-07 12:25.)This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation.