BOCOM INTL: Expected continued recovery of mainland real estate, bullish on CHINA RES LAND (01109) and others.

BOCOM INTL released a research report stating that, according to preliminary data from CRIC, the total sales of the top 100 developers increased by 73.9% month-on-month to 344.5 billion RMB by March 2025. The sales of 23 major listed developers in March increased by 67.6% month-on-month. Most developers saw a narrower decline compared to the same period last year. The price index in various tier cities narrowed its decline compared to the same period last year, with the National Bureau of Statistics reporting a 5.2% year-on-year decrease and a 0.1% month-on-month decrease in the price index for new residential buildings in 70 major cities in February. The government work report for March stated for the first time the need to "stabilize the real estate and stock markets" in the annual economic work requirements, and emphasized again the need to "continue to push for the real estate market to stabilize and recover." The bank believes that the policy focus has shifted from short-term market rescue to gradually building long-term mechanisms. It is expected that the market may continue to recover during the traditional peak sales season of April. Demand in the secondary market will continue to improve, while the primary market will remain relatively stable. Buyers are expected to continue to prefer state-owned projects, and are optimistic about CHINA RES LAND (01109) and YUEXIU PROPERTY (00123), both rated as "buy."