According to the CITIC Securities Research Report, the road to judicial restructuring of housing enterprises has both opportunities and challenges. Due to the importance of real estate companies in terms of delivery and employment, we believe that local authorities will support some large-scale housing enterprises to test the waters for judicial reorganization. Real estate companies often have some high-quality assets, such as asset-light operation teams, service teams, and stable cash inflows generated based on these teams; owned properties with stable rent growth; and land reserves in core cities. However, due to the relative lack of liquidity in the current land and bulk property trading market, the market valuation of the supporting real estate industry is also very low, so it will take time for the value of high-quality assets to be released. More importantly, stable housing prices are essential for companies to carry out any kind of balance sheet optimization work.