Before National Day, a series of combined policies were introduced to help stabilize the real estate market.

First, the reduction of reserve requirements and interest rates provide more liquidity to the market from the macro environment.

Second, reducing the interest rates for existing home loans and unifying the minimum down payment ratio for housing loans lowers the cost of home purchase, enhances residents' enthusiasm for homebuying, and helps to increase consumption.

Third, introducing other favorable policies for the real estate sector improves the real estate market environment and boosts market confidence.

Stock market, especially the real estate sector, has significantly rebounded, while building material varieties (glass, PVC) in the futures market continue to rise.

Market confidence in the real estate and related building materials industries is gradually recovering.

"On September 24, the spot glass production and sales rates across the country all exceeded 100%, and have since maintained at high levels for several consecutive days. In the Shahe area, the production and sales rates have even exceeded 200% in recent days." Zhang Linglu, Senior Senior Analyst of Guotai Junan Futures Resource Products, said that previously constrained by high glass inventories and unresolved supply and demand contradictions, glass manufacturers hesitated to initiate a price increase mode until September 28, when spot glass prices began to rise across the board.

The current average loss in the glass industry is about 190 yuan/ton, with valuation at an extremely low level.

Affected by losses, the glass cooling rate has accelerated, with the recent daily melting volume of glass decreasing by about 7% from the high levels, slightly easing the pressure on the supply side.

On the demand side, the fourth quarter is the traditional peak season for glass demand, and demand is expected to improve compared to the previous quarter.

Favorable policies have boosted demand expectations, but policy transmission takes time. The year-on-year improvement in glass demand may not appear until 2025.

Related Hong Kong stocks in the glass industry chain:

Fuyao Glass (03606), Triumph New Energy (01108), Flat Glass (06865), Xinyi Glass (00868)