As of now, more than 80 cities have announced support for state-owned platform enterprises and other acquisitions of commercial housing, for the purpose of guaranteeing housing, resettlement housing, talent housing, transitional housing, etc.

Among them, at least 36 cities have already issued announcements for collecting housing sources. Chen Wenjing, the director of market research at the China Index Research Institute, stated that state-owned enterprises storing unsold new houses will have multiple impacts on the market. Firstly, it is beneficial for accelerating the supply of affordable housing, better meeting the housing needs of the working class, and promoting the rational allocation of property resources.

Secondly, it is beneficial for the clearance of market inventory, relieving the funding pressure on development enterprises, and the destocking effect is the most direct.

According to the research report of Zhongtai Securities, the various data of the real estate industry from January to July 2024 is still hovering at a low level. With the policy guidance of "de-stocking" and the optimization adjustment of core housing policies, the future industry data is expected to reach bottom and stabilize with the continuous release of policies. The investment opportunities in the sector continue to be bullish, and it is recommended to focus on real estate enterprises that have a solid performance, high safety and are positioned in core cities where the policies are relaxed and "de-stocking" is promoted.

CITIC Securities stated that meeting the residents' need to improve the quality of living has become the focus of the policies. This includes not only promoting the sale of existing houses, reforming the real estate development model, but also implementing retirement funds for housing, housing physical examinations, and housing insurance systems, improving the living quality of existing residential communities.

With the assistance of policies, the situation of old and outdated housing equipment in China will change. Important facilities such as elevators are expected to be updated more rapidly; the real estate development model is expected to change, real estate development enterprises with strong product capabilities and construction service enterprises are expected to gain a greater competitive advantage; policy encouragement for the circulation of existing houses and home decoration and furnishing sectors may lead to significantly faster business development in the entire industry chain; the housing physical examination itself is also expected to drive the growth in demand for engineering assessments. CITIC Securities is bullish on investment opportunities related to the 'good house' industry.

Real estate-related industry chain companies:

China Overseas Development (00688), C&D International Group (01908), Yuexiu Property (00123), Greentown China (03900), Sunac (01918), Longfor Group (00960), Sino-Ocean Group (03377), China Vanke (02202), China Resources Land (01109), etc.

Property management companies include China Resources MIXC (01209), Poly Property Services (06049), China Overseas Property Services (02669), and Midea Real Estate (03990).

Real estate intermediaries: Ke Holdings (02423), CG Services (06098)