Gelonghui November 26 | Credit Lyonnais published research reports stating that the real estate markets in mainland China and Hong Kong are expected to stabilize by 2025. The inventory buyback and anticipated interest rate cuts by the Federal Reserve in the first half of next year will be key to improving the property market. Currently, it is still predicted that property prices in mainland China and Hong Kong will continue to decline in the first half of next year, with stabilization expected only in the second half. Regarding the Hong Kong property market, Credit Lyonnais believes that interest rate cuts are key to attracting investment demand back, with the current rental return rate at around 3.5%, close to the actual mortgage rate of 3.625%, gradually driving property prices back up. Credit Lyonnais maintains a cautious outlook on Hong Kong residential developers, preserving the "underperform market" rating for shk ppt, with the target price lowered from HKD 70.5 to HKD 63.6, and profit forecasts for 2025 and 2026 reduced by 10.5% and 17.2% respectively, while annual dividend forecasts have been cut by 16.7% and 23.5%. As for mainland real estate, Credit Lyonnais expects state-owned real estate companies to continue expanding their market share, maintaining the "outperform market" rating for Vanke, predicting that the company will continue to record losses in the next two years, with profit forecasts for 2024 to 2026 reduced by 244.9%, 142.7%, and 78%, respectively, and the target price correspondingly lowered from HKD 8.9 to HKD 8.2. Given that china res land's valuation is low and the fundamental factors are stable, Credit Lyonnais continues to list it as a preferred stock, rating it as "outperform market", with a target price of HKD 30.