On May 24, the Property Management Unit continued to adjust. As of press release,$CG SERVICES (06098.HK)$decreased by 8.39% to HK$6.33;$EVERG SERVICES (06666.HK)$decreased by 7.14% to HK$0.78;$SUNAC SERVICES (01516.HK)$decreased by 5.91% to HK$2.07;$A-LIVING (03319.HK)$It decreased by 5.91% to HK$3.5.

According to the news, Zhang Zhaojuan, vice president of Kerui Group, recently stated that the property industry is in a downward cycle and deep adjustments are continuing. Zhang Zhaojuan pointed out that the area of property management contracts is declining, and real estate supply is expected to decrease further in the next two years. Furthermore, mergers and acquisitions last year were only 3.3 billion yuan, one-tenth of the peak, and one-third of last year. Among them, there are relatively few companies involved in the acquisition industry; the area managed by third parties is also decreasing. In the process, many companies are retiring projects, and the revenue of projects expanded in previous years has not increased.

According to a report published by CICC, the property management sector recorded a considerable increase in the past month with the introduction of real estate policies and a shift in investment sentiment. Core coverage stocks have recorded an average increase of 45% since their low level on April 16. The bank believes that under the current policy direction, the visibility of volume and price stabilization and structural recovery in the physical market for a year or more has increased. Although the stock price reaction may be fixed ahead of the physical market, it is expected to provide a layout window if phased profits are settled. CICC expects the profit growth rate of property management stocks to be roughly between 10 to 20% this year. The real estate industry's potential recovery in volume and price increases the certainty of delivery, but implied flexibility is relatively limited.