According to a report released by ICBC International, high-quality state-owned real estate developers in mainland China resumed growth in June, with significant improvement in contract sales of major developers, which increased by an average of 20% per month, reflecting seasonal factors and fundamental improvements. Poly Developments and Holdings Group, China Overseas Land and Investment Limited, China Resources Land, China Merchants Shekou Industrial Zone Holdings, Greentown China, Agile International Holdings Limited, Yuexiu Property, and China Fortune Land Development Company all ended their downward trend in the past 12 months, with China Overseas Land and Investment Limited experiencing a year-on-year increase of 40% in contract sales in June.

The bank pointed out that the data shows improvements in both the primary and secondary markets, and the adjustment of housing prices is supporting the market's recovery. The reduction in land supply has allowed the market to balance and we believe that the medium-term recovery is supported by improvements in basic factors. The recovery of high-quality state-owned real estate developers is more certain, and China Overseas Land and Investment Limited, Greentown China, and Poly Developments and Holdings Group are preferred.