Lyon: Domestic property stocks surge sharply without specific catalysts, possibly driven by capital inflows and expectations of urban renewal investments.

Citi released a research report stating that major domestic property stocks have seen a comprehensive surge in their share prices this afternoon. The major domestic property stocks listed in Hong Kong rose between 5% and 14%, with some A-shares even hitting the maximum limit. The banks preferred stocks performed strongly, with CHINA RES LAND (01109) rising by 7.3%, CHINA JINMAO (00817) by 14%, and YUEXIU PROPERTY (00123) by 10%. The bank pointed out that it has not identified any specific catalyst that directly triggered this strong rebound. Citi analysts believe that this upward trend may reflect the following factors: First, despite no visible improvement in the fundamentals, capital rotation from other sectors has flowed into domestic property stocks, coinciding with the bank's forecast that the property sector will reach its bottom in the fourth quarter; second, the market may have underestimated the impact of the policy easing from Beijing announced over the weekend, as the sector only recorded a low single-digit increase on Monday after the relevant policies were announced; third, during the 14th Five-Year Plan period, urban renewal investments may reach as high as 15 trillion RMB, reminding the market that even after a deep adjustment, the investment scale in the domestic real estate industry remains greater than that in sectors like artificial intelligence, while the total market value of domestic property stocks currently represents only a small portion of AI-related companies.