China Resources Land's stock plummeted 6.16% during intraday trading on Monday, marking a sharp reversal from recent highs.

The decline follows a period of strong gains fueled by multiple international banks, including Morgan Stanley and CLSA, raising their target prices for the developer, citing a 49.6% year-over-year jump in April contract sales. However, the rally has lost momentum as caution over the sustainability of the property sector's recovery takes hold.

Daiwa recently published a report noting that while the mainland property sector has rebounded, the recovery is not comprehensive. The brokerage highlighted that despite a surge in new home pre-sale permits in Shanghai, few projects have withdrawn discounts, suggesting both developers and buyers lack conviction—a prerequisite for any structural and sustained recovery. This analysis has contributed to broad weakness across the real estate development sector.