Chinese property stocks continued their upward momentum.

Key gainers included CIFI HOLD GP (00884), up 6.56%, YUEXIU PROPERTY (00123), rising 5.72%, LOGAN GROUP (03380), gaining 5.3%, and AGILE GROUP (03383), increasing 4.08%.

Data from a research institute indicates that the decline in land acquisition value for the top 100 developers narrowed by 6.2 percentage points year-on-year for the period from January to May compared to the January-April period.

Similarly, the decline in sales value narrowed by 4.7 percentage points, marking the third consecutive month of contraction in both metrics.

This positive sentiment follows the official release of China's first national-level special plan for urban renewal, the "15th Five-Year Plan for Urban Renewal."

The plan sets a dual-phase target: achieving significant progress in urban renewal actions by 2030 and basically building modern people-oriented cities by 2035.

Analysts from CICC suggest the third quarter may represent a transition phase for the sector's performance.

They note that while the strength of the physical market's performance in Q3 and beyond remains uncertain, the current high implied potential returns and controllable downside risks could provide a basis for subsequent capital rotation into the sector.

If the physical market shows strong performance after Q3, it could potentially lead to a significant sector re-rating.