Some Chinese property stocks gained in afternoon trading. As of press time, SUNAC (01918) rose 5.92% to HK$1.61; CH OVS G OCEANS (00081) climbed 5.31% to HK$2.38; LONGFOR GROUP (00960) advanced 2.27% to HK$10.82; China Vanke Co.,Ltd. (02202) increased 2.26% to HK$5.43.

On the news front, on August 28, the "Opinions of the CPC Central Committee and the State Council on Promoting High-Quality Urban Development" was released, with content closely related to real estate regarding activating urban stock resource potential, systematically promoting "good housing" construction, and strengthening housing safety management. Additionally, Beijing and Shanghai have recently relaxed purchase restriction policies outside the Fifth Ring Road and Outer Ring Road respectively.

Sinolink Securities noted that following the implementation of policies such as the cancellation of purchase limits outside Beijing's Fifth Ring Road and Shanghai's Outer Ring Road, property transaction volumes are expected to rebound in the fourth quarter, helping to further stabilize fundamentals and prevent further decline. Considering the currently low valuations of the real estate sector, the firm recommends allocating to property stocks on dips and focusing on targets with stable operations that may benefit from potential policy support.

The firm recommends developers with stable operations that may benefit from potential policy support, particularly those that focus on and have deep cultivation in core first and second-tier cities, specialize in improved housing products, and maintain continuous land acquisition capabilities.