Credit Suisse said in a report that the mainland cut the minimum interest rate for first home loans by 20 basis points, providing more room for banks to further cut mortgage rates after a sharp drop in household loans. It also shows the authorities' support for housing demand in the face of a weak real estate market.

Credit Suisse pointed out that, with reference to the easing cycle from 2014 to 2015, the people's Bank of China required a differentiated mortgage policy in February 2014 and reduced the down payment ratio for second home purchases in March 2015. In December 2014, the annual growth of second-hand housing transactions in first-tier cities and the monthly growth of house prices turned positive.

Credit Suisse pointed out that despite the depressed market sentiment, more easing measures are expected in first-tier cities, and pent-up demand will support sales recovery in first-tier cities after the Omicron epidemic is brought under control. The bank is bullish on China overseas (0688.HK), China Resources Land (1109.HK), Longhu (0960.HK), China Jinmao (0817.HK), Yuexiu Real Estate (0123.HK) and China overseas Hongyang (00081.HK).