HSBC research released a research report indicating that during the National Day Golden Week holiday (October 1st to 7th), the performance of the China real estate market has been positive, reflecting the effectiveness of a series of supportive policies recently introduced by the authorities. The latest statistics from Ke Holdings show that the sales area of 22 main first-tier and second-tier cities in the mainland increased by 42% and 23% respectively compared to the previous year, with Shenzhen and Guangzhou seeing growth of 242% and 51% respectively, and second-tier cities such as Hangzhou and Suzhou increasing by 373% and 205% respectively.

HSBC research believes that the sales recovery is mainly due to improved market sentiment and accelerated decisions by potential buyers to purchase property. Sales data from October to December will show more signs of recovery, mainly driven by policy influences and low base numbers. Despite a significant market correction, the bank believes that the risk-return profile of large real estate companies has become more attractive, bullish on Ke Holdings (02423.HK)(BEKE.US), China Resources Land (01109.HK), China Overseas (00688.HK), Longfor Properties (00960.HK), and China Resources MixC (01209.HK), all rated as 'buy'.