Hong Kong-listed mainland property stocks rose in early trading, with Ronshine China (ASX: 03301) gaining more than 8%.

Shimao Group, Agile Group, and China Vanke all climbed over 4%, while Greentown China, Sunac China, Country Garden, Longfor Group, and China Jinmao each advanced more than 3%.

Citi issued a research report noting a contradiction in China's property sector, where market conditions have improved but profitability and return on equity have deteriorated.

The sector's share prices have rebounded on expectations of new policy support, including the State Council executive meeting and mortgage interest subsidies, as well as stabilizing home prices in Shanghai and Beijing and a recovery in September sales.

The bank believes 2027 will be a pivotal year for home price recovery in core cities, supported by reduced new supply and inventory levels.

However, it remains cautious on the fourth quarter of 2026, as developers face risks to sales and profitability following the completed-home sales policy, including a shrinking new home market and pressure on earnings and return on equity from lengthening cash conversion cycles.