Daiwa released a research report pointing out that the Beijing Municipal Commission of Housing and Urban-Rural Development and other departments jointly issued the "Notice on Optimizing Policy Measures for the Stable and Healthy Development of Beijing's Real Estate Market", announcing the reduction of first-time and second-time home loan interest rates and down payment ratios, increasing the loosening of housing mortgage policies. The new measures will take effect from today (27th). It is expected that the sales of the real estate market in first-tier cities will improve due to policy benefits, but the sustainability of the improvement driven by the policy is not optimistic.

The bank believes that the market has long expected further relaxation of policies, and believes that related positive factors have been reflected in the stock price performance. However, with the upcoming Third Plenum, the market may have a new round of policy-oriented trading frenzy. Therefore, there may be opportunities to enter the market recently, emphasizing that state-owned real estate companies are still the best long-term investment target, and continue to list China Resources Land (01109.HK) and Yuexiu Property (00123.HK) as industry preferences with target prices of HKD 36.1 and HKD 9.95 respectively, and rating of 'buy'.