Guotai Junan: Shanghai's "New Seven Rules" policy optimization and upgrading, focusing on the pace of fiscal efforts and the timing of the emergence of blue-chip competitive advantages.

Guotai Haitong released a research report stating that on February 25th, Shanghai issued the "New Seven Regulations", involving seven aspects such as reducing purchase restrictions, optimizing housing provident fund, and improving property tax. It is expected that this combination of measures will effectively release the pent-up reasonable demand, leading to a simultaneous recovery in the new and second-hand housing markets. The "buy" rating for the real estate industry is maintained. Looking ahead to 2026, it is the beginning year of the "15th Five-Year Plan". The requirements for high-quality development by regulators are expected to lead the market. Considering the thorough industry restructuring during the 14th Five-Year Plan, the current 8 trillion square meter new housing market has the purchasing capability. Pay attention to the pace of fiscal efforts and the timing of the emergence of blue-chip competitive advantages.