According to the Wisdom Financial app, mainland real estate stocks continue to weaken. As of press time, China Overseas Development (00688) fell 4.08%, closing at HKD 14.58; Sunac (01918) fell 4%, closing at HKD 1.2; Shimao Group (00813) fell 3.66%, closing at HKD 0.79; China Vanke(02202) fell 2.52%, closing at HKD 5.42.

On the news front, according to Zhuge Research Institute, the sales volume of new homes during the Dragon Boat Festival holiday in 2024 is lower than last year, and the overall sales volume is only slightly higher than the second lowest point of 2022 in nearly five years. Data shows that during the Dragon Boat Festival holiday in 2024 (June 8-10), 3905 sets of newly-built commodity residences were sold in 13 key cities, a decrease of 32.63% from last year's Dragon Boat Festival holiday, and an increase of 0.46% from 2022. Considering that 2022 was in the stage of epidemic prevention and control, the scale of this year's Dragon Boat Festival holiday transactions is only higher than that. This means that the recovery of the new housing market is still relatively slow this year, and it has not yet returned to the level before 2021. There is still considerable room for growth in transaction volume.

Orient Securities' research report pointed out that as local governments implement different policies according to their own needs, reducing down payment ratios, lowering the threshold for home purchases, and combining with lower commercial loan interest rates, they are reducing the follow-up housing consumption burden of residents and affecting market sentiment positively. The transaction volume has rebounded, and the policy effect has gradually emerged. However, considering that the overall ability of residents to pay initial payment and monthly payments for house purchases is weak, and the supply side is relatively large, the sustainability of policy effects still needs to be observed in the future.