Gao Shengfa reported that since the announcement of the "16 measures" of real estate, the share price of the property management (PM) sector has rebounded sharply, the state-owned / private property management shares have risen by more than 15% and 60% respectively, and the valuation gap between state-owned / private property management shares has also narrowed. In addition, shares of private companies with similar growth prospects to state-owned enterprises, such as China Galaxy (06881) and Xuhui Yongsheng Services (01995), are still trading at more than 40 per cent lower than state-owned enterprises, suggesting that higher market expectations for their growth prospects have been reflected in current share prices.

Although the bank is optimistic about the "16 measures" and related policies, which is expected to inject more liquidity into the industry and improve completion prospects, the bank also believes that it is too early to expect some real estate developers facing high liquidity pressure to be out of trouble. The bank believes that its related property management companies will still be affected in terms of profitability, 2B VAS prospects, 2C VAS, mergers and acquisitions, and 3P expansion. In addition, the bank noted that improved completion prospects had relatively little impact on near-term earnings forecasts. The bank reiterated its "buy" ratings on Greentown China (03900), Asahi Yongsheng Services (01995), everything Cloud (02602), China Shipping Properties (02669), Poly Properties (06049) and China Galaxy (06881). Maintain the "sell" ratings of Jinke Services (09666), time Neighbourhood (09928), Shimao Services (00873) and Sunac Services (01516).