National Bureau of Statistics Makes Statement, Market Expectations Improve, Real Estate Sector Strengthens, Multiple Stocks including Airport Co., Ltd. Hit Daily Limit [SMM Flash News]

SMM News on May 19:

On May 19, driven by positive macroeconomic expectations, including the National Bureau of Statistics (NBS) making a statement, the General Office of the Central Committee of the Communist Party of China and the General Office of the State Council recently issuing the "Opinions on Continuously Promoting Urban Renewal Actions," favorable local policies, market capital inflows, and the stability and increase in housing prices in first-tier cities like Beijing in April, the real estate sector strengthened. By the close of trading on the 19th, the real estate services sector rose by 2.4%, and the real estate development sector increased by 2.66%. In terms of individual stocks, multiple stocks such as Airport Co., Ltd., Shahe Co., Ltd., Huayuan Property Co., Ltd., Haitai Development Co., Ltd., China Fortune Land Development Co., Ltd., and Dianzicheng Co., Ltd., hit their daily limits. Rongsheng Development Co., Ltd., Jingneng Real Estate Co., Ltd., Nandu Property Co., Ltd., and Shenzhen Zhenye Group Co., Ltd. (A-share) were among the top gainers. On the news front: Fu Linghui, spokesperson for the National Bureau of Statistics, stated that the real estate market was basically stable in April, with broad prospects for improving the quality and efficiency of real estate construction! Fu Linghui also mentioned that in the next phase, it is necessary to earnestly implement the decisions and deployments of the Party Central Committee and the State Council, proactively adapt to the reality of significant changes in the supply-demand relationship in the real estate market, strengthen policy coordination, continuously increase the supply of "high-quality housing," actively promote urban renewal actions and the construction of affordable housing, accelerate the establishment of a new model for real estate development, better meet the people's needs for a better living environment, and promote the steady and healthy development of the real estate market.

News Front

[National Bureau of Statistics: Since the beginning of the year, China's real estate market has continued to move towards halting declines and stabilizing, with transactions in some first- and second-tier cities showing signs of recovery] Fu Linghui, spokesperson for the National Bureau of Statistics, stated that under the effect of various policies aimed at halting declines and stabilizing the real estate market, since the beginning of the year, China's real estate market has continued to move towards halting declines and stabilizing, with transactions in some first- and second-tier cities showing signs of recovery, and housing prices generally stable. However, it should also be noted that the overall real estate market is still in the process of adjustment and transformation. Rigid and improvement-oriented demand remains to be released, and the pressure to sell off real estate in some regions is still relatively high. Continuous efforts are still needed to promote the halting of declines and stabilization of the real estate market. 》Click to view details

[YoY decline in sales prices of commercial residential buildings narrows across all city tiers] In April, the sales prices of newly built commercial residential buildings in first-tier cities decreased by 2.1% YoY, with the decline narrowing by 0.7 percentage points from the previous month. Among them, Shanghai saw an increase of 5.9%, while Beijing, Guangzhou, and Shenzhen experienced decreases of 5.0%, 6.3%, and 3.0%, respectively. The sales prices of newly built commercial residential buildings in second- and third-tier cities decreased by 3.9% and 5.4% YoY, respectively, with the declines narrowing by 0.5 and 0.3 percentage points, respectively. In April, the selling prices of second-hand residential properties in first-tier cities decreased by 3.2% YoY, with the decline narrowing by 0.9 percentage points compared to the previous month. Among them, Beijing, Shanghai, Guangzhou, and Shenzhen saw decreases of 1.0%, 0.6%, 7.4%, and 3.7%, respectively. The selling prices of second-hand residential properties in second- and third-tier cities decreased by 6.5% and 7.4% YoY, with the declines narrowing by 0.5 and 0.4 percentage points, respectively.》Click for details

[Beijing Releases 2025 Annual Housing Development Plan]Recently, the Beijing Municipal Commission of Housing and Urban-Rural Development released the "2025 Beijing Annual Housing Development Plan," which clarifies the annual goals and key tasks for housing development. The plan proposes specific tasks, action plans, and work measures around eight aspects, including optimizing housing land supply, supporting reasonable housing demand, and strengthening housing security, to consolidatetherealestatemarket's stable trend, promote high-quality housing development, and achieve higher levels of housing for all. The plan proposes to optimize housing land supply. Adhering to the principle of supply based on demand, it arranges 240 to 300 hectares of land for commercial housing, prioritizing development in areas with relatively complete facilities such as around rail transit stations, to create vibrant centers for work, living, and commerce. It also coordinates the supply of various types of affordable housing land, totaling 475 hectares.

[Xinyang, Henan Officially Announces Pre-sale Reform: Industry Insiders Say It May Be Implemented Gradually]On May 13, the Xinyang Municipal Bureau of Housing and Urban-Rural Development released the "Several Measures on Strengthening the Management of Pre-sale Commercial Housing," which mentioned the implementation of pre-sale reform in the central urban area based on the principle of "differentiating between new and old projects." Projects that obtain construction permits after the issuance of the document must reach the main structure's topping-out before applying for pre-sale permits; for newly auctioned land after the document's issuance, pre-sale is no longer allowed. Guojin Securities stated that pre-sale reform means delayed capital recovery, and the accompanying policies, especially financing policies, are not yet clear, which will increase the financial pressure on enterprises in the short term. At the same time, it will raise the threshold for developers to acquire land, increase the difficulty of land auctions, and further increase local fiscal pressure. In the short term, it may be implemented gradually under the framework of "city-specific policies."

[Shenzhen's Second-hand Housing Transactions Show Post-Holiday Recovery, Up 107% WoW]According to statistics from the Shenzhen Real Estate Intermediary Association, in the 19th week of 2025, the city recorded 1,407 second-hand housing transactions (including self-service), up 106.6% WoW. The association believes that the weekly transaction volume of second-hand housing was affected by the Labour Day holiday, showing fluctuations in the past two weeks, and the current transaction volume has returned to normal levels. According to statistics on the number of second-hand housing units publicly available for sale, as of May 12, 2025, there were 71,832 valid second-hand housing units for sale in the city, a decrease of 499 units WoW. (Caijing)

[PBOC: Expand the Scope of Use for Affordable Housing Refinancing to Continuously Consolidate the Stable Trend of the Real Estate Market] On May 9, the People's Bank of China (PBOC) released the Implementation Report on China's Monetary Policy for the First Quarter of 2025. In the next phase, it will accelerate the establishment and improvement of the pension finance system to support China's pension cause. It will support the boosting and expansion of consumption, guiding financial institutions to actively meet the diversified funding needs of various entities from both the supply and demand sides of consumption. It will expand the scope of use for affordable housing refinancing, continuously consolidate the stable trend of the real estate market, improve the basic real estate finance system, and help build a new model for real estate development.

[Pan Gongsheng, Li Yunze, and Wu Qing Make Major Statements! Covering RRR Cuts, Interest Rate Cuts, the Stock Market, the Real Estate Market, and More...] At 9 a.m. on May 7, the State Council Information Office will hold a press conference, inviting the heads of the People's Bank of China, the National Financial Regulatory Administration, and the China Securities Regulatory Commission to introduce the situation regarding the "package of financial policies to support market stability and expectations". PBOC Governor Pan Gongsheng, National Financial Regulatory Administration Director Li Yunze, and CSRC Chairman Wu Qing will attend the conference. The PBOC announced that, starting from May 8, it will cut the interest rate on 7-day reverse repo operations in the open market by 0.1 percentage point. Starting from May 15, it will cut the reserve requirement ratio (RRR) for financial institutions by 0.5 percentage point. Starting from May 8, it will cut the interest rate on individual housing provident fund loans by 0.25 percentage point. It will cut the RRR for auto finance companies and financial leasing companies by 5 percentage points. Starting from May 7, it will cut the refinancing rate by 0.25 percentage point. Starting from May 8, it will cut the standing lending facility rate by 10 basis points. It has decided to increase the quota for refinancing to support agriculture and small businesses by 300 billion yuan and increase the quota for refinancing to support technological innovation and technological transformation by 300 billion yuan. Li Yunze stated that eight incremental policies have recently been introduced, including accelerating the introduction of a series of financing systems compatible with the new model for real estate development, further expanding the scope of pilot programs for long-term investment by insurance funds to introduce more incremental funds into the market, adjusting and optimizing regulatory rules, reducing the risk factor for insurance companies' stock investments to support a stable and active capital market, promptly introducing a package of policies to support financing for small and micro enterprises and private enterprises, formulating a series of policy measures for the banking and insurance industries to safeguard the development of foreign trade, providing precise services to market entities significantly affected by tariffs, revising the management measures for merger and acquisition loans, increasing investment in science and technology innovation enterprises, and formulating opinions on the high-quality development of technology insurance. Wu Qing, Chairman of the China Securities Regulatory Commission, stated at a press conference held by the State Council Information Office that every effort would be made to consolidate the momentum of market stabilization and improvement, dynamically improve work plans to address various external risk attacks, and fully support the role of Central Huijin Investment Ltd. as a quasi-stabilization fund. 》Click to view details

[Zhuhai: Encourages "trade-in" for housing, with a maximum subsidy amount of no more than 30,000 yuan per unit] Zhuhai recently issued the "Several Measures to Promote High-Quality Development of the Real Estate Market in Zhuhai City," which proposes encouraging "trade-in" for housing. Residents participating in the "trade-in" program for housing will receive a special housing purchase subsidy of 1% of the online contract price of the newly purchased home, with a maximum subsidy amount per unit not exceeding 30,000 yuan. The subsidy policy is valid for one year. A unified platform for "trade-in" housing will be established, synchronously linked with the government's online approval process, enabling "one-stop" online handling of business transaction procedures. The cross-bank handling of "transfer with mortgage" transactions will be vigorously promoted. For taxpayers who sell their own homes in Zhuhai and repurchase a home in the city within one year, the individual income tax paid when selling their own home will be refunded in accordance with national policies.

[Wuhan: Families with two or three children purchasing newly built commercial housing within the city will receive housing purchase subsidies of 60,000 yuan and 120,000 yuan, respectively] The Wuhan Housing and Urban Renewal Bureau and other departments issued a notice on continuously consolidating the stable situation of the real estate market, optimizing housing loan services for young people. Commercial banks are encouraged to provide specialized housing loan financial products and diversified repayment methods for young people working and starting businesses in Wuhan. The housing provident fund loan policy will be optimized. The maximum loan amount for the second personal housing provident fund loan will be increased to be consistent with that for the first home. Support for employees who transition from renting to purchasing will be strengthened, allowing the amount withdrawn for rent to be included in the calculation of the loan amount based on the deposit balance. The "trade-in" acquisition efforts will be increased. State-owned enterprises and various market entities are encouraged to acquire individual second-hand homes to promote the "trade-in" program. Active efforts will be made to carry out cross-district "trade-in" for housing, with the city planning to acquire 3,000 individual second-hand homes for various types of rental housing and resettlement housing. Support for improved housing purchase needs will be continuously provided. Before December 31, 2025, families that sell their own homes within this year and purchase newly built commercial housing within six months, or purchase newly built commercial housing and sell their original own homes within 12 months, will receive a full subsidy from the district where the newly purchased home is located based on the actual amount of deed tax paid. The scope of housing purchase support for families with multiple children will be expanded. From May 1 to December 31, 2025, families with two or three children that comply with the national family planning policy and purchase newly built commercial housing within the city will receive housing purchase subsidies of 60,000 yuan and 120,000 yuan, respectively. Support for the purchase of commercial and office properties will be increased. From May 1 to December 31, 2025, individuals purchasing newly built commercial and office residential properties for non-business purposes will receive a 50% subsidy based on the actual amount of deed tax paid. The minimum down payment ratio for commercial loans will be reduced from 50% to 45%, and the loan interest rates will be independently determined by commercial banks based on relevant principles of loan risk management.

Voices from All Sides

A research report by Sinolink Securities points out that the early-stage monetary policy is expected to alleviate the pressure on the liability side for both residents and enterprises simultaneously, which will drive the transaction of commercial residential properties and the implementation of newly commenced projects. Considering that fiscal funds are clearly identified as the main source of support for urban renewal, it is expected that the implementation speed will accelerate in the future. Developers are recommended to prioritize key layouts in first-tier and core second-tier cities, focusing on improved products, and possess the ability to continuously acquire land. Real estate agencies are recommended to benefit from the continuous implementation of favorable policies, the increased activity in both the primary and secondary housing markets, and to have core competitive advantages in intermediary platforms and property and commercial management.

A research report by Kaiyuan Securities points out that the General Office of the CPC Central Committee and the General Office of the State Council recently issued the "Opinions on Continuously Promoting Urban Renewal Actions," proposing that by 2030, significant progress should be made in the implementation of urban renewal actions, the institutional mechanisms for urban renewal should be continuously improved, and initial results should be achieved in the transformation of urban development and construction methods. Hangzhou has witnessed the transfer of three residential plots involving residential land in Qiantang District, with a total land transfer area of 155,058 m², a total planned construction area of 314,743.9 m², and a total starting price of 2.573 billion yuan. Ultimately, all three plots were sold at the base price, generating a total of 2.573 billion yuan. Sales in the first four months of 2025 have initially stabilized, and the April Political Bureau meeting proposed to "continuously consolidate the stable trend of the real estate market," affirming the effectiveness of real estate regulatory policies. It is expected that subsequent policies targeting the real estate sector will remain positive and mild, with more active fiscal and monetary policies expected to be introduced to support the steady development of the industry. Under active fiscal policies and moderately loose monetary policies, the acquisition and storage of existing properties and the renovation of urban villages are expected to accelerate, improving the existing housing supply-demand relationship, speeding up the process of halting declines and stabilizing the market, and maintaining an "overweight" rating for the industry.

A research report by China Galaxy Securities states that on May 7, the State Council Information Office held a press conference on "a package of financial policies to support market stability and stabilize expectations," which mentioned "reducing the interest rate on personal housing provident fund loans by 0.25 percentage points" and introduced that a series of financing systems compatible with the new model of real estate development will be accelerated to help continuously consolidate the stable trend of the real estate market. This reduction in loan interest rates related to home purchases, along with the mention of introducing incremental financing support policies, covers aspects such as real estate development, personal housing, and urban renewal. The research report suggests that with the continuous promotion of policies, the threshold for home purchases by residents is expected to decrease, and the rigid and improvement-oriented housing demands of residents are expected to receive further support. With the backing of policies, the allocation value of the real estate sector stands out. The report believes that leading real estate enterprises demonstrate excellent operational management capabilities and financial advantages, and their market share is expected to rise further.

The research report of Wanlian Securities states: China's real estate market still has significant room for development. Since the Political Bureau meeting in September last year, the sales end of commercial housing has shown signs of stabilizing after a decline. The recent reduction in the interest rate for housing provident fund loans will further open up room for adjustments in the interest rates for individual housing commercial loans, reducing home purchase costs. Meanwhile, this package of monetary policies will further boost market confidence and improve residents' income expectations. Wanlian Securities expects that subsequent policy measures will remain continuously accommodative, with relevant optimization policies being continuously introduced to consolidate the stable trend of the real estate market. Currently, there is considerable uncertainty in overseas market demand. Against the backdrop of greater efforts to promote consumption, expand domestic demand, and strengthen the domestic economic cycle, promoting housing consumption will be a key focus. It is expected that policies such as urban renewal will continue to be optimized and accelerated in implementation, and more incremental policies are still worth anticipating. The real estate industry is expected to maintain a stable trend with the continuous support of policies.

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