UBS Group's research report indicated that Beijing, like other mainland first-tier cities, has announced measures to loosen the real estate market, including reducing the first-time purchase down payment ratio to 20% and the second-time purchase down payment ratio to 35%, lowering the lower limit of mortgage interest rates, relaxing the definition of first-time homebuyers for families with multiple children, and encouraging developers and brokers to participate in the trade-in program.

The bank pointed out that KE Holdings (BEKE.US) will benefit the most from the above measures, as the company has a 25% share of the total second-hand real estate transactions in Beijing.

UBS also pointed out that Shanghai, Guangzhou, and Shenzhen announced measures to loosen the real estate market since May 27th. On June 25th, the daily sales of first-hand residences in Shanghai and Shenzhen increased by 18% and 27%, respectively. Second-hand residence sales in Shenzhen increased by 13%. So far, the transactions in Shanghai and Shenzhen have continued to rise compared to before the measures were relaxed. Therefore, the bank expects that the relaxed policies in Beijing will drive up both first-hand and second-hand property transactions for a period of approximately 6-8 weeks.