"Large Banks" Huayan: Domestic real estate is in a policy vacuum period, optimistic about CHINA RES LAND, C&D INTL GROUP, and SEAZEN

HSBC's research report indicates that sentiment in the mainland real estate market has cooled, entering a policy vacuum period. After experiencing a recovery, some adverse phenomena have begun to emerge, such as weakness in the high-end residential market, reflecting that the government's efforts to improve housing quality and increase housing demand may not be sufficient to stabilize the new housing market.

On a positive note, the bank stated that as long as policies are flexibly adjusted, these phenomena can still be repaired. HSBC believes that investors should pay attention to potential housing market support policies that may emerge, which could act as a catalyst for domestic property stocks. In a context of low policy expectations, any policy news may be viewed as positive. From a fundamental perspective, when housing price expectations stabilize, suppressed demand combined with ongoing supply tightening will support market recovery.

In terms of stocks, the bank prefers China Resources Land (01109.HK), C&D International Group (01908.HK), and SEAZEN (01030.HK), all rated "Buy," with target prices of HKD 43, HKD 21.7, and HKD 3.3, respectively; the bank believes that the normalized earnings of these stocks have significant upside potential, and their earnings visibility is better than their peers