Survey by the Ministry of Housing and Urban-Rural Development sends positive signals, real estate sector strengthens, multiple stocks including Chongqing Development and Shahe Industry hit daily limit [SMM News]

SMM, July 7:

A research team from the Ministry of Housing and Urban-Rural Development recently conducted surveys in Guangdong and Zhejiang provinces, stressing the need to maintain stable real estate market conditions. The easing of debt risks among some property developers has boosted market confidence in debt restructuring efforts. Favorable expectations of sustained policy support fueled a rally in the real estate sector during morning trading on July 7. As of 10:34 a.m. on July 7, the real estate development sub-index had risen 2.05%, with Yukaifa, Shahe Stock, Nanshan Holdings, and Cases Development hitting daily limits. Haitai Development, Gemdale Corporation, and Seazen Holdings also led gains. By 10:43 a.m., the real estate services sub-index had increased 1.99%, with Tefa Service surging nearly 8%, while Shimao Service, Beichen Real Estate, and 5i5j Group also posted notable gains.

Market News

[Ministry of Housing: Maintain Stable Real Estate Market]A research team from the Ministry of Housing and Urban-Rural Development recently conducted surveys in Guangdong and Zhejiang provinces. The team emphasized the importance of promoting stable, healthy, and high-quality development in the real estate sector. Local authorities must fulfill their responsibilities, fully leverage policy autonomy in real estate regulation, implement targeted measures, and enhance systematic policy effectiveness to sustain market stability. The team called for accelerating the construction of "high-quality housing" that is safe, comfortable, green, and smart to meet new public expectations. A multi-pronged approach should stabilize expectations, stimulate demand, optimize supply, and mitigate risks to accelerate market stabilization. Despite complex domestic and overseas economic conditions, all regions and relevant departments have resolutely implemented decisions by the CPC Central Committee and the State Council. Significant progress has been made in ensuring housing project completions, effectively protecting homebuyers' rights. Continued implementation of the real estate stimulus policy package saw H1 national new and existing home transaction volumes grow YoY, maintaining overall market stability. The share of existing home transactions has gradually increased, with several provinces recording higher existing home sales than new homes, reflecting new market characteristics. (Xinhua News)》Click for details

[Sunac China: Plans to Issue 754 Million New Shares for RMB5.6 Billion Domestic Bond Repayment]Sunac China announced via Hong Kong Stock Exchange on July 4 that, to facilitate the orderly implementation of stock options in its onshore debt restructuring, the company entered into a subscription agreement with a special purpose company on July 3, 2025. Under the agreement, the special purpose company conditionally agreed to subscribe for 754,468,943 new shares issued by Sunac China. Net proceeds from the disposal of these shares, equivalent to onshore funds, will be used to repay approximately RMB5.6 billion in domestic bonds held by bondholders who elected the stock option.

[Jingmen, Hubei: Commercial Housing on Newly Transferred Land to Be Sold as Completed Properties in Principle from January 1, 2026]On July 3, the Office of the Leading Group for Promoting the Stable and Healthy Development of the Real Estate Market in Jingmen City, Hubei Province, issued the "Policy Measures for Continuously Consolidating the Stable Situation of the Real Estate Market in the Central Urban Area," which proposed orderly advancing the sale of completed properties. For high-quality real estate development land newly transferred, the completed property sales model will be prioritized. From January 1, 2026, commercial housing developed on newly transferred land will in principle be sold as completed properties. Following the principle of "distinguishing between new and old," the threshold for presale of commercial housing will be gradually raised. For projects obtaining construction permits after August 1, 2025, the construction progress should reach the topping-out of the main structure.

[China Index Academy: Land Acquisition by Top 100 Developers in H1 Up 33.3% YoY]Data from China Index Academy showed that in H1 2025, the total land acquisition amount by TOP100 real estate enterprises reached 506.55 billion yuan, up 33.3% YoY, with the growth rate expanding by 4.5 percentage points MoM. Affected by the low base in the same period last year, the YoY growth rate of land acquisition by TOP100 enterprises expanded MoM. Overall, in H1 2025, the transaction area of residential land in 300 cities continued to shrink, but the land transfer revenue increased significantly YoY, driven by the supply of high-quality plots in core cities. State-owned enterprises remained the main land acquirers, with 8 out of the top 10 enterprises in terms of land acquisition amount being state-owned. Some private enterprises also showed certain investment intensity, such as Binjiang Group ranking in the top 10, and Bangtai Group and Taihe County Dahua Metal Materials Co., Ltd. entering the top 20.

[Wuhan: Policy on "Optimizing Approval Services for New Commercial Housing Projects" Extended to December 31, 2025]The Wuhan Housing and Urban Renewal Bureau officially released the "Notice on Extending the Duration of Some Real Estate Policies." The applicability period of the policy in Article 8 of the "Notice on Further Optimizing and Improving Policies to Promote the Stable and Healthy Development of the Real Estate Market in Our City" (Wufangfa [2024] No. 1), regarding "optimizing approval services for new commercial housing projects," was extended to December 31, 2025. From October 1, 2024, to December 31, 2025, for purchases of new commercial housing in Wuhan, full subsidy will be granted based on the actual paid deed tax for properties recognized as the family's first home when applying for the property ownership certificate, while a 50% subsidy will be provided for properties recognized as the family's second home.

[PBoC: Strengthening Support for Technological Innovation and Consumption Boost, Exploring Institutional Arrangements to Maintain Capital Market Stability]The People's Bank of China Monetary Policy Committee held its Q2 2025 (109th) regular meeting on June 23. The meeting studied work related to deepening supply-side structural reform in the financial sector, noting that major banks should be guided to play a leading role in providing financial services to the real economy, while small and medium-sized banks are urged to focus on their core responsibilities and businesses. Support should be given to banks in replenishing capital to jointly maintain stable development of financial markets. The meeting emphasized effective implementation of various structural monetary policy tools, solid progress in advancing the "five key areas of finance," increased support for technological innovation and consumption stimulation, and strengthened financing support for priority areas including the "two major strategies" and the "two new programs." It called for leveraging swap facilities among securities, funds, and insurance companies as well as share repurchase and shareholding increase refinancing, exploring institutional arrangements for normalization, and safeguarding capital market stability. Continuous efforts should be made to provide financial services that support the growth of the private sector, give full play to the coordination mechanism for financing small and micro enterprises, and further eliminate bottlenecks and barriers in financing for small, medium, and micro enterprises. Vigorous efforts should be made to ensure effective implementation of existing financial policy measures, intensify efforts to revitalize existing commercial housing and land inventories, sustain stable development of the real estate market, improve foundational real estate finance systems, and facilitate the establishment of a new development model for the sector. The meeting stressed advancing high-standard two-way financial opening-up and enhancing capabilities in economic and financial management and risk prevention under opening conditions.

[He Lifeng noted during his inspection tour in Hebei: Expand domestic demand, boost consumption, and promote high-quality economic development] Xinhua News Agency reported that He Lifeng, member of the Political Bureau of the CPC Central Committee and Vice Premier of the State Council, emphasized during his inspection tour in Hebei from August 23rd to 24th the need to thoroughly study and implement the guiding principles of General Secretary Xi Jinping, earnestly implement decisions and deployments of the CPC Central Committee and the State Council, accelerate the establishment of a unified national market, proactively expand domestic demand and boost consumption, expedite the creation of a new real estate development model, develop new quality productive forces in line with local conditions, and better promote high-quality economic development. He Lifeng visited Handan and Xingtai to conduct field research on trade-in activities for home appliances, real estate development and sales, and the development of new energy and new materials industries. He gained an in-depth understanding of the economic situation in the first half of the year, business operations of relevant enterprises, and major challenges faced. He Lifeng noted that China's economy has maintained positive momentum despite pressures since the beginning of this year, with continuously improving social confidence. He called for sustained efforts to ensure effective implementation of trade-in policies for durable consumer goods and stabilize market expectations. Cities may, based on actual conditions and with the goal of greater convenience for residents, integrate consumer goods trade-ins with urban renewal initiatives to better unlock consumption potential. He stressed the need to sustain stable development of the real estate market, accelerate the establishment of a new development model for the sector, and better meet the people's new expectations for "high-quality housing."Efforts should be intensified to stabilize the output and improve the quality of foreign trade producers and promote the integrated development of domestic and foreign trade. Requirements for strengthened supervision and risk prevention must be rigorously implemented to effectively prevent and defuse risks in local small and medium-sized financial institutions in a forceful, orderly, and effective manner. Focus should remain on core businesses to continuously drive innovative development of enterprises in high-end equipment manufacturing, smart PV, clean energy, new materials, and other sectors, while comprehensively addressing cut-throat competition. Acceleration of the transformation and upgrading of economic and technological development zones is needed to enhance specialized service capabilities for enterprises within these zones and develop new quality productive forces in line with local conditions. He Lifeng urged relevant departments and local authorities to conduct in-depth research and exploration, actively pursue innovation, promptly study and resolve practical challenges faced by enterprises, effectively counter external shocks, and fully achieve economic objectives for the first half (H1) and the entire year to better advance high-quality economic development. Z23/>[The 12th meeting of the 14th National Committee of the Chinese People's Political Consultative Conference (CPPCC) Standing Committee holds a plenary session, with keynote speeches delivered on "Further Deepening Economic System Reform to Advance Chinese Modernization"]

According to Xinhua News Agency, the 12th plenary session of the 14th National Committee of the CPPCC Standing Committee convened on the afternoon of the 24th, where 14 CPPCC Standing Committee members delivered keynote speeches focusing on "Further Deepening Economic System Reform to Advance Chinese Modernization." Wang Huning, member of the Standing Committee of the Political Bureau of the Communist Party of China (CPC) Central Committee and Chairman of the CPPCC National Committee, attended the meeting. On behalf of the Central Committee of the China Democratic League, Cao Weixing proposed in his speech to promote better integration of an efficient market and a proactive government and establish a unified national market that is efficient, standardized, fairly competitive, and fully open. Xu Xiaolan suggested in her speech to improve long-term mechanisms and encourage, support, and guide private economic entities to participate in national technological breakthroughs. On behalf of the Central Committee of the Jiusan Society, Liu Zhongfan recommended optimizing the mechanism for commercializing scientific and technological achievements, facilitating the integration of technology and economy, and accelerating the formation of new quality productive forces. Zhang Lianqi proposed in his speech to expand domestic demand by addressing urgent livelihood issues and drive high-quality development through "investing in human capital." On behalf of the Central Committee of the China Association for Promoting Democracy, Yao Aixing suggested deepening fiscal and taxation system reforms to establish a clear, coordinated, and regionally balanced fiscal relationship between central and local governments. Yi Gang proposed deepening financial system reforms to strengthen financial support for private economy and technological innovation, and provide high-quality financial supply for green and low-carbon development. Li Shijie, on behalf of the Central Committee of the China National Democratic Construction Association, recommended improving diversified investment growth mechanisms to support technological innovation and accelerate the cultivation of future industries. Yan Ying suggested in her speech to promote efficient allocation of computing resources and facilitate collaborative development of industrial and general-purpose large models. On behalf of the Central Committee of the Revolutionary Committee of the Chinese Kuomintang, Li Huidong proposed deepening reforms and innovations in agricultural technology extension to achieve effective integration of technological innovation with industrial development and align technical services with industrial demands. Standing Committee Member Wang Xiaodong proposed in his speech to better leverage the role of county towns in connecting cities and driving rural development, promoting integrated urban-rural development. Standing Committee Member Fang Guanghua suggested in his speech that the government, enterprises, universities, and other stakeholders should work together to promote high-quality and full employment for college graduates. Standing Committee Member Feng Zhenglin proposed accelerating the establishment of a new model for real estate development to serve new-type urbanization and common prosperity. Standing Committee Member Li Yao suggested strengthening investment and financing support, expanding new formats in service trade, and facilitating the high-quality development of the Belt and Road Initiative. Standing Committee Member Hong Huimin recommended proactive measures to stabilize and improve the quality of foreign trade and investment.

[Xi'an: Allows Housing Provident Fund to Directly Cover Down Payments for New Commercial Housing] Multiple departments in Xi'an, including the Municipal Housing and Urban-Rural Development Bureau, jointly issued the "Several Measures of Xi'an City to Promote the Stable and Healthy Development of the Real Estate Market." The measures include deepening financial support for real estate, implementing policies such as lower down payments and interest rates, expanding the "white list" for financing real estate enterprises, optimizing loan approval processes, and increasing financing support for commercial projects. Housing provident fund support will be enhanced, allowing it to directly cover down payments for new commercial housing. The scope of cross-regional housing provident fund loans will be expanded to include the Guanzhong Plain urban cluster and employees with housing provident fund accounts within the province.

[Quzhou Introduces New Property Policies, Offering Subsidies for Multi-child Families Purchasing Improved Housing] The Quzhou Municipal Housing and Urban-Rural Development Bureau, the Municipal Finance Bureau, and the Municipal Health Commission jointly issued the "Notice on Further Measures to Promote the Stable and Healthy Development of the Real Estate Market," proposing subsidies for multi-child families purchasing improved housing. From June 20, 2025, multi-child families purchasing newly built commercial housing in the urban area (projects that obtained pre-sale permits for the first time since 2021) can enjoy subsidies. Families with two children signing the "Zhejiang Province Commercial Housing Sales Contract" for properties with a floor area of 100 m² or above can apply for a subsidy of 80,000 yuan. Families with three children signing the same contract for properties with a floor area of 120 m² or above can apply for a subsidy of 200,000 yuan. The subsidies will be issued in the form of housing vouchers, which can be used in conjunction with other vouchers, and the policy will be trialed for one year. Detailed implementation rules will be formulated separately by the Municipal Housing and Urban-Rural Development Bureau, the Municipal Finance Bureau, and the Municipal Health Commission.

Voices from Various Sectors

Zhang Zuohao, Chief Macro Analyst at Hongze Midao (Shanghai) Investment Consulting Co., Ltd., shared insights on "Domestic Infrastructure and Real Estate Situation Analysis and Trend Outlook" at the 2025 SMM (3rd) Wire and Cable Industry Development Conference and Exhibition—Wire and Cable Industry Development Forum, hosted by SMM Information & Technology Co., Ltd., co-organized by Luoyang Sanwu Cable Group Co., Ltd., and supported by associations including the Jiangsu Wire and Cable Association, Henan Electrical Engineering Association, Zhejiang Wire and Cable Association, Hunan Wire and Cable Association, Guangdong Wire and Cable Association, Shanghai Wire and Cable Association, Shenzhen Special Robot Cable Association, Guizhou Wire and Cable Association, Hubei Wire and Cable Association, and companies such as Anhui Xinhai High-Conductivity New Materials Co., Ltd., Minfeng Cable Group Co., Ltd., Dongwu Futures Co., Ltd., Zhejiang Dongyi Holding Group Co., Ltd., and Jiangsu Zhongli Group Co., Ltd.. He noted that the supply-demand margin for second-hand homes has significantly improved, inventory for new homes continues to decline, prices are gradually bottoming out, and the acceleration of special bond issuance for land reserves is key to the future recovery of the land market.

[China Index Academy: Projected sales decline in H2 real estate market to slightly widen compared to H1]China Index Academy released its summary of China's real estate market in H1 2025 and outlook for H2: Supported by the September 26 policy package last year, the real estate market maintained recovery momentum in Q1 2025, achieving certain results in stabilizing prices and halting declines. Since the beginning of the year, market recovery has been more concentrated in core cities, with "good cities + good houses" demonstrating strong resilience, while the land market also showed some recovery, though market momentum weakened somewhat since Q2. H1 policies continued to release positive signals, with the April Political Bureau of the CPC Central Committee meeting emphasizing "continued consolidation of stable real estate market conditions" and proposing to "increase supply of high-grade housing," while stressing "optimization of existing commercial housing acquisition policies." The June 13 State Council executive meeting reiterated "greater efforts to stabilize the real estate market and halt price declines," "further optimize existing policies to enhance systemic effectiveness of implementation," and clearly outlined policy directions to "stabilize expectations, activate demand, optimize supply, and mitigate risks," injecting confidence into the market. Looking ahead to H2, considering the elevated sales base from Q4 last year driven by the policy package, the sales decline in H2 is projected to slightly widen compared to H1, though "good cities + good houses" will continue to present structural opportunities.

[CRIC: Projected further escalation of 'property market stabilization' policies in H2 with potential alleviation of industry inventory pressure]CRIC Real Estate Research indicates that under sustained policy regulation, China's real estate market is gradually developing toward stability and health in H1 2025. Policy implementation accelerated significantly since Q2, accelerating the market's transition to a new positive cycle. Active central and local policy advancements in H1 provided strong support for market stability and healthy development. It is anticipated that policy efforts to stabilize the market will intensify in H2, with comprehensive implementation of urban renewal and land acquisition/storage policies expected to further alleviate industry inventory pressure on both supply and demand sides. The real estate market is expected to accelerate toward a new dynamic equilibrium in supply-demand relations, while the industry accelerates progress toward high-quality development.