BOCI Securities Limited: Mainland housing prices have begun to stabilize, but there is still a need to reduce inventory.

Bank of China International released a research report stating that due to the March statistical data showing a stabilization in housing prices, their view on the real estate industry has become slightly more optimistic. Although real estate transaction volume continues to decline year-on-year, the inventory turnover period is still trending downward, indicating a continuous improvement in the supply and demand situation. On the other hand, the bank believes that continued inventory reduction is necessary to provide sufficient support for housing prices and ultimately achieve a rebound in prices. Therefore, the bank believes that the government will continue to promote inventory reduction policies, such as purchasing commercial housing for public housing and monetizing resettlement for urban village renovations. However, the bank also expects that major cities will not introduce very strong supportive policies in the short term, such as lifting purchase restrictions, because existing home prices in these cities have already started to rise in March.