HSBC's research report suggests that the loose financing environment and more supportive policies in place are expected to drive mainland real estate stocks to show an earlier turnaround. The bank believes that the market seems to have already digested the certainty of the real estate market bottoming out, and generally anticipates the turnaround of mainland real estate stocks to occur in 2025, rather than the previously expected 2026. In addition, investors are currently worried about missing opportunities in the strong policy tailwind, thus maintaining a continuous risk attitude.

HSBC mentioned that developers may quickly take action during the golden period and seize opportunities. The bank pointed out that some land in Guangzhou, Shenzhen, and Chengdu has been sold at high premiums, while luxury residential projects in Shanghai continue to be hot-selling. Therefore, stable mainland property prices will be the biggest catalyst for the performance of mainland real estate stocks.

HSBC believes that the real estate industry as a whole will benefit under the drive of central policies. Developers with substantial investments in first-tier cities should significantly benefit, and they recommend including Yuexiu Property (00123.HK), Greentown (03900.HK), China Overseas (00688.HK), R&F Properties (01109.HK). Longfor (00960.HK), China Resources Mixc (01209.HK), and KE Holdings (BEKE.US) are also given a 'buy' rating. For detailed investment ratings and target prices of mainland real estate stocks, please refer to the separate table. (js/u)

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