The Zhitong Finance app learned that HSBC released a report saying that it believes the real estate policy may be relaxed, and it is expected that policy relaxation will begin as soon as March this year to ease the financial pressure on the local government.

The bank said that the relaxation of demand-side measures, such as purchase restrictions and lower down payment requirements, has a direct positive effect on the market. The bank also said that maintaining a constructive view of the domestic housing industry, plus recent stock price adjustments, has made sector valuations attractive.

The bank said it preferred China Resources Land (01109), Zhongjun Group (01966), Xuhui (00884), Shimao Real Estate (00813), and Hejing Taifu (01813), all of which gave a “buy” rating.