We see signs of the Chinese government to speed up its deleveraging progress. Recently, some commercial banks in China have stopped granting credit to the real estate developers and suspended their credit business in property development, which has a negative impact on the real estate sector. However, the government has yet to introduce any stricter measures on the property market since the 19th CPC National Congress. Instead, the government has directly or indirectly introduced loosening policies in eight cities in varying degrees. In addition to the loosening measures, we’re seeing a sustained rally in the property sector on sales optimism. The integration progress in property market continues as the stricter measures imposed last year has lifted industry concentration, with the market share of top 10 property developers increased 5.4% yoy last year, to 24.1%. With the implementation of deleveraging, we expect the performance of mainland large-cap property developers with more fundraising channels should continue to outperform their peers.

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