According to Zhitong Finance APP, mainland real estate stocks generally rebounded. At press time, Midea Real Estate (03990) rose 4.71% to HKD 6.67, Shimao Group (00813) rose 4.05% to HKD 0.77, Sunac (01918) rose 2.56% to HKD 1.2, Longfor Group (00960) rose 2.51% to HKD 11.42.

On the news front, according to Soochow Securities, the area of new home transactions in 37 cities last week was 2.51 million square meters, a 33.6% increase from the previous month, and a 15.5% decrease year-on-year; the area of second-hand home transactions in 16 cities last week was 1.808 million square meters, a 28.9% increase from the previous month, and an 88.8% increase year-on-year. Soochow Securities pointed out that recently, the central bank and the Ministry of Housing and Urban-Rural Development successively held meetings to propose to promote local orderly and effective acquisition of existing inventory properties, and follow-up policies for acquisition and storage are expected to accelerate. The bank predicts that as policies gradually take effect, real estate sales are expected to gradually improve.

Guosen Securities stated that following the Central Bank's reduction of the down payment ratio and cancellation of the lower limit interest rate on May 17, various regions have successively relaxed their restrictions on home purchases and loans. From the perspective of effect, although there are differences in the degree and sustainability of improvement, improvement is the consensus of the market. Although it is still uncertain when the price of new homes will stop falling, and it is difficult to give the true value of real estate assets, the market is already well prepared for the decline in new home prices.