Zhongjin: By around 2028, real estate companies may experience a comprehensive recovery in their operating fundamentals.

Zhongjin pointed out that since 2026, the real estate sector has experienced two rounds of ups and downs. Although the year-to-date returns have been limited, the market attention, fund positions, and market expectations have all improved positively compared to 2025. Despite the improvement in the fundamentals of the second-hand housing market in the first quarter, especially in regions such as Beijing and Shanghai, which may continue to show some sustainability, the recent decline in stock prices may also reflect doubts in the capital market about the prospects for the recovery of the Chinese real estate market. From the current position, we believe that the short-term investment issues for the next 6-12 months are relatively clear: the end of the third quarter and the beginning of the fourth quarter may be the next major trend confirmation point. We believe that there is a high probability of a more positive performance in the physical market, so we recommend investors to buy on dips. In the long term, we believe that around 2028, real estate companies may experience a comprehensive recovery in their operational fundamentals.