baccaratzenith| Real estate destocking continues to advance! More than 60 cities or regions support "trade-in"

In early trading on May 21, A-shares opened slightly lower overall. The Shanghai Composite Index opened at 3,164baccaratzenith.68 points, down 0.20%baccaratzenith; The Shenzhen Stock Exchange Index opened at 9,721.72 points, down 0.30%; the GEM Index opened at 1,871.78 points, down 0.22%. The real estate sector was among the top gainers in early trading. The real estate ETF Huaxia (515060), which has been widely watched by the market recently, maintained a red market, with a better growth than similar products. Among the stocks held, Chongqing Development and Caixin Development had a daily limit, with I Love My Home, Hefei Urban Construction, Jingji Intelligent Agriculture, and Huaxia Happiness among the top gainers. Poly Development rose slightly, while Vanke A fell nearly 1%.

On the news front, it is reported that more than 60 cities or regions across the country have begun to support the old-for-new housing policy. Among them, Nanjing's first batch of pilot projects has a quota of 2000 units, 3044 units have been effectively registered, and 365 units have been intended to subscribe for new houses. The performance is relatively outstanding, mainly related to factors such as the large scale of the pilot, fewer housing purchase conditions, fair evaluation prices, and good location and quality of new houses.

Housing swaps are used as a government platform or real estate companies encourage and help existing housing residents sell old houses and buy new ones by purchasing old houses, assisting in replacement, and subsidizing. Replacing old houses with new ones will help smooth the replacement chain of primary and second-hand houses, help shorten the transaction cycle, and promote the de-transformation of new house sales.

Ping An Securities believes that with the introduction of heavy real estate policies and the short-term entry into a fundamental observation period, the market is currently divided on the effect of the policy and sales stabilization. Coupled with the large upward trend in stock prices in the early period, it does not rule out fluctuations in the sector in the short term; in the medium term, the central government has made strong efforts to inventory and digest existing properties. If the subsequent property market stabilizes less than expected, it is still expected to obtain greater policy support.