CLSA released a research report noting a broad and sharp rally in major Chinese property stocks during Tuesday afternoon trading, with gains of 5% to 14% for Hong Kong-listed developers and some A-share names hitting their daily upward limit.

The firm's top picks performed strongly, with CHINA RES LAND (01109) rising 7.3%, CHINA JINMAO (00817) gaining 14%, and YUEXIU PROPERTY (00123) advancing 10%.

CLSA pointed out that it has not identified any specific catalyst directly triggering this strong rebound. The brokerage analyzed that the surge may reflect the following factors: first, capital rotation from other sectors flowing into property stocks despite a lack of fundamental improvement, aligning with the firm's forecast that the property sector will bottom out in the fourth quarter; second, the market may have underestimated the impact of Beijing's policy easing over the weekend, as the sector only recorded low single-digit gains on Monday following the announcement; third, urban renewal investment during the "15th Five-Year Plan" period could reach up to 15 trillion yuan, reminding the market that even after a deep correction, the investment scale in China's real estate sector remains larger than areas such as artificial intelligence, yet the total market capitalization of property stocks is currently only a fraction of that of AI-related companies.