As of now, more than 80 cities have announced their support for state-owned platform enterprises to acquire commodity housing for the purpose of affordable housing, resettlement housing, talent housing, and turnover housing.

Among them, at least 36 cities have issued announcements for collecting housing resources. Chen Wenjing, Director of Market Research at Zhongzhi Research Institute, said that the collection of unsold new homes by state-owned enterprises will have multiple impacts on the market. First, it is conducive to accelerating the supply of affordable housing, better meeting the housing needs of salaried income groups, and promoting the rational allocation of real estate resources.

Second, it is conducive to destocking the market inventory and alleviating the financial pressure of development enterprises, with the most direct effect on destocking.

Zhongtai Securities' research report states that various data in the real estate industry remained at a low level from January to July 2024. With the policy focus on destocking and the optimization of core housing policies, it is expected that industry data will bottom out and stabilize with the continuous introduction of policies. It continues to be bullish on investment opportunities in the sector, suggesting a focus on well-positioned real estate companies with stable performance, higher safety levels, and layouts in core cities, under the relaxed policies in core cities and the promotion of destocking.

Citic Securities stated that meeting the demand for improving the quality of housing for residents has become the main direction of policies, which includes not only promoting the sale of finished houses and reforming the real estate development model, but also implementing housing pensions, housing physical examinations, and housing insurance systems to improve the living quality of existing communities.

With the support of policies, the situation of old housing facilities in China will be changed, and important facilities such as elevators are expected to be updated faster. The development model of real estate is expected to change, and real estate development companies and construction service enterprises with product strength are expected to gain greater competitive advantages. The policy encourages the circulation of existing houses and the development of home decoration and home furnishing sectors, which may lead to a significantly accelerated development speed in the entire industry chain. The growth of demand for engineering evaluation will be beneficial for the industry of housing physical examinations. Citic Securities is bullish on investment opportunities related to the "good house" industry.

Real estate-related industry chain companies:

China Overseas Development (00688), C&D International Group (01908), Yuexiu Property (00123), Greentown China (03900), Sunac (01918), Longfor Group (00960), Sino-Ocean Group (03377), China Vanke (02202), China Resources Land (01109), etc.

Property management companies include China Resources MIXC (01209), Poly Property Services (06049), China Overseas Property Services (02669), and Midea Real Estate (03990).

Real estate intermediaries: Ke Holdings (02423), CG Services (06098)