Mainland Chinese property stocks continued their recent upward trend. At the time of writing, Sunac China Holdings Ltd. (01918) rose 7.38% to HK$1.31. CIFI Holdings Group Co. Ltd. (00884) increased by 7.06% to HK$0.091. Guangzhou R&F Properties Co., Ltd. (02777) advanced 5.36% to HK$0.59. China Vanke Co., Ltd. (02202) gained 5.18%, trading at HK$3.86.

The positive movement is supported by data showing a stabilization in the national real estate market for January 2026, with market confidence showing signs of recovery. In terms of transaction volume, data from CRIC indicates that the transaction area for pre-owned homes in 13 key cities across the country reached approximately 8.1 million square meters in January. This represents a month-on-month increase of 16% and a year-on-year growth of 33%.

Furthermore, recent supportive measures include Shanghai officially initiating the purchase of second-hand homes for conversion into public rental housing projects. Additionally, Foshan has permitted delays in real estate project construction and reduced penalty fees for developers.

According to a research report from Changjiang Securities, the policy objective of halting the market decline and achieving stability had previously provided a significant boost to market expectations. However, since April of last year, marginal downward pressure has intensified once more. With policy intervention thresholds gradually being approached, improving and stabilizing housing market expectations holds strategic importance. The probability of industry policy easing is progressively increasing, with the primary remaining question being the timing of such measures. The report also noted that the current premium of stock prices above their lows is not substantial, and rising market valuations provide room for catch-up gains.