On July 15th, Gelunhui reported that Citigroup's report stated that the historic measures taken to stabilize the real estate industry in mainland China (517 real estate policy) are gradually cooling down after the initial emotional excitement. Citigroup believes that although there are challenges in the implementation of the policy, it is still too early to deny the far-reaching positive effects it may have on the real estate and banking industries. The bank holds an optimistic attitude for two reasons, including the successful inventory reduction trial plans in Zhengzhou and Jinan recently; and belief that the 517 policy will continue to receive policy support. Citigroup believes that China Resources Land and Ke Holdings are the main beneficiaries of the real estate industry's improvement. As for banks, the clearance of real estate inventory can alleviate concerns about asset quality, reduce systemic risks and stock risk premiums, and the preferred banks are CMB and ICBC.