Today, the real estate sector continued yesterday's rise, with China Vanke Co., Ltd. and Poly Developments and Holdings Group rising 5% and 3%, respectively.

In terms of ETF, at midday closing, Huaxia Fund Real Estate ETF and Yinhe Fund Real Estate ETF both rose more than 2%, while Southern Fund Real Estate ETF and Huabao Fund Real Estate ETF rose 1.84% and 1.62%, respectively.

On August 7th, the Shenzhen Municipal People's Government News Office announced that the Shenzhen Anju Group intends to collect commodity housing for affordable housing. According to the published content, in order to actively build a "guarantee + market" housing supply system, following the principles of "marketization, rule of law" and voluntary principles of both sides, Shenzhen Anju Group Co., Ltd. intends to carry out the acquisition of commodity housing for affordable housing. Now, it is soliciting commodity housing projects for affordable housing in the Shenzhen area.

Reducing the inventory of existing houses is one of the key policies in the current real estate policy. On May 17th, the central bank announced the establishment of a 300 billion yuan re-loan for affordable housing, encouraging and guiding financial institutions to support local state-owned enterprises to acquire unsold commodity houses at reasonable prices and use them for the distribution or leasing of affordable housing in accordance with market-oriented and legal principles. On July 30th, the political bureau meeting once again proposed actively supporting the acquisition of existing commodity houses for affordable housing.

According to incomplete statistics from Jianghai Securities, since May 17th, many cities such as Chongqing, Kunming, Huizhou, Jiangmen, Guilin, Nanning, Yantai, Xinxiang, Weifang, Dalian, Beihai, etc. have issued announcements for soliciting commodity housing for affordable housing; Wuhan, Suzhou, Yinchuan, Wuhu, Changzhou, Xuzhou and other areas encourage the collection of commodity housing.

The market believes that Shenzhen's "collection and storage" to reduce inventory is a strong signal, further highlighting the trend of local governments' acquisition of property, and Beijing and Shanghai may follow suit in the future.

It is worth mentioning that on August 1st, Guangzhou issued a notice on "Supporting the Extraction of Housing Provident Fund to Pay for House Purchasing Down Payment", which states that from now on, buyers and their spouses can apply for their own housing provident fund to pay for the down payment when purchasing new commercial housing in Guangzhou, which will further stimulate the real estate market activity.

Kaiyuan Securities believes that the political bureau meeting continued to set the tone for the real estate and building materials expectations to improve.

From the sales data of the real estate market in July, residents are still waiting and watching. Data from the Kriger Research Center shows that the real estate market supply and demand are both weak, with key 30 cities' supply and turnover both down 25% and 30% month-on-month, and down 18% and 13% year-on-year, respectively. The absolute volume is at a low point for the year (only slightly higher than January-February), and lower than the monthly average in the second quarter. The cumulative year-on-year sales in the first seven months decreased by 36%, narrowing down by 3 percentage points than the previous month.

At the corporate level, China's real estate market remained at a low level of operation in July. The top 100 real estate companies achieved sales of 279.07 billion yuan, down 36.4% month-on-month and down 19.7% year-on-year. The monthly performance remained at a historical low level.

Caitong Securities believes that under the continued support of policy, sales will gradually recover, especially in high-energy-level cities, which will be the first to recover.

Currently, there are seven real estate theme ETF products in A shares. The largest one is Southern Fund Real Estate ETF, with the latest scale of 4.342 billion yuan, tracking the name of the real estate index.

The top ten constituents of the real estate index are China Vanke Co., Ltd., Poly Developments and Holdings Group, China Merchants Shekou Industrial Zone Holdings, Hainan Airport Infrastructure, Shanghai Zhangjiang Hi-Tech Park Development, Hangzhou Binjiang Real Estate Group, Gemdale Corporation, Shenzhen Overseas Chinese Town, Zhuhai Huafa Properties, and Shanghai Lingang Holdings, with Vanke Co., Ltd. and Poly Developments and Holdings Group each accounting for 9%.

The SWHY team believes that after three years of deep adjustment, the real estate industry is expected to enter the bottom-building stage, mainly due to the following reasons: On the one hand, after the basic fundamentals of the real estate industry underwent deep adjustment, the three bottom signals of mortgage burden ratio, rental return rate, and thousand people construction have emerged, and it is expected that the natural demand bottom of the real estate industry will come. On the other hand, since the end of April this year, policies such as 430, 517, and 607 have been intensively introduced, and the policy orientation has changed from the supply side to the demand side, focusing on the clear goal of reducing inventory and stabilizing house prices.