August 20, SMM News: Base metals: At midday close, most base metals on the domestic market rose. SHFE copper rose 0.36%, SHFE aluminum fell 0.57%. SHFE lead rose 0.28%. SHFE zinc edged down. SHFE tin rose 1.68%. SHFE nickel rose 1.19%. Additionally, the most-traded cast aluminum futures edged up, while the most-traded alumina contract fell 0.3%. The most-traded lithium carbonate contract rose 0.98%. The most-traded silicon metal contract rose 0.57%. The most-traded polysilicon futures rose 0.48%. Ferrous metals showed mixed performance. Iron ore fell 2.17%, rebar fell 0.46%, and hot-rolled coil fell 0.27%. Stainless steel rose 0.63%. Coking coal and coke: the most-traded coking coal contract rose 0.25%, and the most-traded coke contract rose 1.12%. On the overseas market base metals side, as of 11:40, LME metals generally rose. LME copper, LME lead, and LME zinc each gained less than 0.3%. LME aluminum fell 0.79%. LME tin rose 0.73%. LME nickel fell 0.64%. Precious metals, as of 11:40, COMEX gold rose 0.11%, COMEX silver rose 2.11%. Domestic precious metals: SHFE gold rose 2.47%, the most-traded SHFE silver contract rose 4.93%. Additionally, at midday close, the most-traded platinum futures rose 4.52%, and the most-traded palladium futures rose 2.44%. At midday close, the most-traded Europe container shipping futures fell 1.46% to 1,716.5 points. As of 11:40 on August 20, noon quotes for some futures: Spot market & fundamentals Aluminum: Today the futures market continued its decline, but the south China spot market was steady with improvement. The cumulative decline in absolute prices had been substantial, clearly breaking below the monthly moving average. Coupled with stable inventory draws and a significant single-day decline, these dual positives prompted holders to generally hold back from selling more firmly... Macro front China: [Unchanged for the 15th consecutive month! August LPR quotes released: 5-year above 3.5%, 1-year 3%] China's August loan prime rate (LPR) was released on August 20, with both 1-year and 5-year above LPR unchanged. The People's Bank of China authorized the National Interbank Funding Center to announce that the loan prime rate (LPR) on August 20, 2026 is: 1-year LPR at 3.0%, 5-year above LPR at 3.5%. The above LPR is valid until the next LPR release. The 7-day reverse repo rate, as the main policy rate, has remained unchanged for 15 consecutive months since its cut in May 2025. Therefore, the pricing basis for LPR quotes has not changed this month. The LPR was last adjusted in May 2025, with both the 1-year and over-5-year LPR cut by 10 basis points. [Shanghai issues "Housing Eight Measures" for property market: Down payment for second homes outside the outer ring road reduced from 20% to 15%, and interim home purchase subsidy policy introduced] To better meet residents' rigid and improved housing needs and promote the stable and healthy development of the real estate market, on August 20, six departments including the Shanghai Municipal Commission of Housing and Urban-Rural Development Management, the Shanghai Municipal Housing Authority, the Shanghai Municipal Finance Bureau, the Shanghai Branch of the People's Bank of China, the Shanghai Financial Regulatory Bureau, and the Shanghai Housing Provident Fund Management Center jointly issued the 《Notice on Optimizing Local Real Estate Policy Measures》 (hereinafter referred to as the 《Notice》), effective from August 21, 2026. The 《Notice》 mainly includes 8 policy measures in 5 aspects: optimizing housing provident fund withdrawal, optimizing personal housing credit, implementing trade-in home purchase subsidies, promoting housing voucher placement, and advancing the acquisition of second-hand housing. [Beijing Yizhuang: Will accelerate the mass production of 100,000-unit level embodied AI robots] According to the "Beijing Yizhuang" official account, on August 19, the 2026 World Robot Conference opened in Beijing Yizhuang. At the "Open Cooperation" main forum, Li Quan, member of the Party Working Committee and Deputy Director of the Management Committee of the Beijing Economic-Technological Development Area, released the "Beijing Machine Domain"—a vision of building a new society of human-machine integrated embodied AI. Beijing Yizhuang will accelerate the development of 100 feature robot products that can be practically deployed, promote their application in 1,000 niche areas; accelerate the mass production of 100,000-unit level embodied AI robots, and form a production capacity of 1 million sets of key core parts. (from Wall Street News APP) The PBOC conducted zero 7-day reverse repo operations for 8 consecutive working days. Today, 327.4 billion yuan of reverse repos matured. US dollar side: As of 11:40, the US dollar index rose 0.03% to 98.83. US Fed meeting minutes showed that several officials last month leaned toward raising rates, while many said that if inflation failed to decline, further tightening of monetary policy would be necessary. However, at the July meeting, uncertainty continued to heavily influence Fed officials' judgment. The minutes showed: "Regarding the monetary policy outlook, participants reiterated that their interpretation of future data would be a key component of policy discussions." The FOMC voted 9 to 3 in July to keep the benchmark interest rate in the range of 3.5% to 3.75%. Logan, Hammack, and Kashkari voted against, advocating for a 25-basis-point rate hike. Two other regional Fed presidents who did not have voting rights in July—Schmid and Musalem—also later stated that if they had had voting rights at that time, they would have supported a rate hike at that meeting. Most of the policy discussions at the July meeting revolved around differing judgments on future inflation trends. The meeting minutes stated: "Most participants expected that inflation would gradually pull back over the remainder of the year as the effects of tariffs and earlier energy price increases faded, but many participants noted that the possibility of inflation remaining elevated persisted." According to the CME FedWatch: The probability of the US Fed keeping rates unchanged by September is 67.3%, and the probability of a cumulative 25-basis-point rate hike is 32.7%. The probability of the Fed keeping rates unchanged by October is 58.3%, the probability of a cumulative 25-basis-point hike is 37.3%, and the probability of a cumulative 50-basis-point hike is 4.3%. Four US Senate Democrats led by Chris Van Hollen have demanded that Fed Chairman Warsh publicly disclose the content of his conversations with Trump, after The Wall Street Journal reported that the two had spoken multiple times, even though Warsh's schedule did not show such calls. The senators said that without disclosing contact information, it could lead the public to mistakenly believe that the White House is steering monetary policy. Last month, under questioning by Van Hollen, Warsh did not directly respond to the matter. The senators demanded that Warsh confirm in writing whether he has had any contact with Trump since taking office, or amend his schedule to disclose relevant calls. In early August, White House National Economic Council Director Hassett downplayed these calls, saying that Trump did not pressure Warsh on rate decisions; and Trump himself said that he had only had one brief conversation with Warsh. In contrast, former Fed Chairman Powell had detailed records of his calls with Trump and disclosed several face-to-face meetings. The US Treasury issued a statement saying it will at least double the size of liquidity support repo operations targeting long-term nominal coupon securities, covering two maturity buckets: 10-to-20-year and 20-to-30-year tenors. The current maximum size per operation is $2 billion, and future operations will be at least $4 billion each. The adjustment will take effect on September 9, 2026, and will be implemented for the remainder of the current refunding quarter (through November 4, 2026). The Treasury will provide more information on future repo sizes at the next quarterly refunding meeting, scheduled for November 4, 2026. The expansion of the repurchase operation scale reflects the Ministry of Finance's intention to provide stronger liquidity support for the long-term nominal government bond market. The Ministry of Finance will announce the updated temporary government bond repurchase arrangements later. US Treasury Secretary Bessent this year has become one of the most interventionist Treasury secretaries in decades through a series of unconventional operations, aiming to curb the rise in US borrowing costs. This week, the US Treasury announced it would "at least double" its originally planned repurchase of 10-year to 30-year bonds. Previously, the Treasury had signaled a possible reduction in long-term debt issuance. On July 31, Bessent led the US government's first yen purchase in 30 years. Former Treasury official Mark Sobel commented that Bessent is "absolutely an aggressive interventionist," with a style reminiscent of his hedge fund background. He believes that Bessent and senior government officials are clearly concerned about rising long-term US Treasury yields. Affected by inflation, Fed monetary policy, and fiscal deficits, the 10-year US Treasury yield has been rising, pushing up mortgage rates and dragging down economic growth. Some analysts point out that Bessent is trying to stabilize the market through yield curve intervention, but also warn that without addressing high debt and fiscal deficits, this strategy is difficult to sustain in the long term. (Jin Shi Data APP) Data: Today, the following data will be released: Australia July seasonally adjusted unemployment rate, Germany July PPI month-on-month, Switzerland July trade balance, UK August CBI industrial order expectations, US initial jobless claims for the week ending August 15, US August Philadelphia Fed manufacturing index, US July Conference Board leading index month-on-month, China July year-to-date installed power generation capacity, China July year-to-date installed power generation capacity year-on-year rate, among others. In addition, attention should be paid to: the Ministry of Commerce's August first regular press conference; interview of 2028 FOMC voter and St. Louis Fed President Musalem by CNBC; Alibaba's earnings release. Crude oil: As of 11:40, both crude oil benchmarks moved sideways, with WTI up 0.05% and Brent up 0.23%. With US-Iran negotiations in a stalemate, oil prices moved sideways. According to CCTV News: On August 19 local time, US President Trump posted on his social media platform "Truth Social" that Iran failed to seize the opportunity to reach an agreement, so he announced the "harshest economic action ever taken against any country" against Iran, calling it an unprecedented "economic war and economic isolation." Trump said the US is building a record number of oil pipelines to reduce dependence on the Strait of Hormuz. He said that with the emergence of more alternative supply routes and the US strengthening its control over the strait, the importance of the Strait of Hormuz will decline. Trump also said that although some had predicted that oil prices could skyrocket to $350, current oil prices remain around $84 to $85 per barrel. Two US officials told Axios that the US military has quietly established a shipping lane through the Strait of Hormuz, carrying millions of barrels of oil daily. Although the broader war remains deadlocked, the operation has achieved significant results. The operation has been ongoing for weeks, and 15 to 20 tankers have already passed through the southern channel off the coast of Oman to enter or exit the Strait. Officials said that about 10 million barrels of oil are shipped through the strait daily and enter the global energy market, but this figure is about half of the pre-war volume. This US-led operation is alleviating one of the most severe impacts of the war: the disruption of oil supply, which has driven a sharp rise in crude oil prices. Officials stated that although the current volume of oil shipped through the strait is still below pre-war levels, it has already had a notable impact on global oil supply. (Jinshi Data) In addition, Venezuelan oil minister Paula Enao told investors in Houston that Venezuela hopes to sign production-sharing contracts and increase oil production in this country with the world's largest crude oil reserves. Enao said that Venezuela currently has 916 blocks available for exploration and production. She said Venezuela is known for heavy crude, but there are also investment opportunities in light and medium crude and natural gas. She said: "We need to reach these agreements to enter these new blocks." "There is a whole world waiting for you to explore." This week, Venezuela has signed agreements with oilfield services giant Schlumberger (SLB.N) and independent oil producer Hnt Oil, but the country hopes to attract more private investment to revive oil production. Over the past 20 years, Venezuela's oil production has been steadily declining. Enao said about 140 companies attended the meeting, and the scale of on-site investors showed the market's interest in investing in Venezuela. Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ► ► ► ►

Recently, the NDRC is working with relevant departments to accelerate the study and formulation of the Implementation Plan for the Strategy of Expanding Domestic Demand (2026-2030). Moving forward, the NDRC will work with relevant departments to effectively expand China's domestic demand with greater intensity and more concrete measures.

★ macro ★ 01 ★★ [The central bank achieved a net withdrawal of 278.5 billion yuan from open market operations.] The central bank conducted 10 billion yuan of 7-day reverse repo operations today, with a bid volume of 10 billion yuan and an allotment volume of 10 billion yuan, at an operation rate of 1.40%, unchanged from the previous level. As 288.5 billion yuan of 7-day reverse repos matured today, a net withdrawal of 278.5 billion yuan was achieved on the day. 02 ★★★ [NBS: June Consumer Prices Rose 1.0% YoY] Data from the NBS showed that in June 2026, the national CPI rose 1.0% YoY. Urban areas rose 1.0%, rural areas rose 0.8%; food prices fell 1.6%, non-food prices rose 1.5%; consumer goods prices rose 1.1%, services prices rose 0.8%. In H1, the national CPI rose 1.0% YoY. In June, the national CPI fell 0.3% MoM. Urban prices fell 0.4%, rural prices fell 0.3%; food prices fell 0.4%, non-food prices fell 0.3%; consumer goods prices fell 0.6%, services prices remained flat. 03 ★★★ [ [NBS: June Industrial Producer Prices Rose 4.1% YoY] ] Data from the NBS showed that in June 2026, the national PPI rose 4.1% YoY and fell 0.3% MoM. Industrial producer purchasing prices rose 6.4% YoY and fell 0.2% MoM. In H1, industrial producer prices rose 1.5% YoY, and industrial producer purchasing prices rose 2.4%. ★ Industry and Downstream ★ 01 ★★★ [Zhejiang Activates Level IV Typhoon Emergency Response] The 9th typhoon of this year, Bavi, was located on the ocean surface about 1,210 kilometers east-southeast of Keelung City, Taiwan, at 5:00 a.m. on July 9, with maximum sustained winds of Force 16 near its center (super typhoon). It is forecast to move northwest at about 15–20 km/h, gradually turning to move northwest tonight, and gradually approaching the waters east of Taiwan. Affected by Bavi, winds in the southern East China Sea will gradually strengthen to Force 8–11 on the night of the 9th. According to the Zhejiang Provincial Emergency Plan for Flood Control, Typhoon Prevention and Drought Relief and the work plan for defending against Typhoon Bavi, after assessment and consultation, the Zhejiang Provincial Flood Control and Typhoon Prevention Headquarters decided at 9:00 a.m. on July 9 to adjust the maritime typhoon emergency response to a Level IV typhoon emergency response. 02 ★★ [H1 NEV Production and Sales Both Exceeded 7 Million Units] On July 9, the latest data released by CAAM showed that from January to June this year, China’s NEV market saw steady growth in production and sales as well as exports. NEV production and sales totaled 7.438 million units and 7.446 million units, up 6.7% YoY and 7.3% YoY, respectively; in June, NEV new-vehicle sales accounted for nearly 60% of total new-vehicle sales. On the export front, from January to June, auto exports reached 5.096 million units, up 65.3% YoY. Of this, NEV exports were 2.355 million units, up 1.2 times YoY. 03 ★★ [China Index Academy: Full-Year Floor Space of Newly Built Commercial Buildings Sold Is Expected to Fall 7.8% YoY] China Index Academy released Summary of China’s Real Estate Market in H1 2026 & Trend Outlook for H2, expecting that in H2, policies on both the supply and demand sides will continue to gain traction, and stabilizing home prices may become a key focus. Overall, the real estate market remains in the process of consolidating at lows, and the market recovery will continue to show divergent characteristics. Looking ahead to H2, the second-hand housing market in core cities is expected to maintain a certain level of activity; sustained improvement in transactions, together with a stabilization in listings, will further narrow the pace of price declines, and the foundation for price stabilization in some cities will gradually strengthen. For new homes, affected by a low base in the same period of 2025, the YoY decline in nationwide new-home sales in H2 is expected to narrow gradually, but a comprehensive market recovery will still take time. 04 ★★★ [Shipbuilders’ Orders Scheduled Through 2030, Industry Sees Clear Upcycle Opportunities] Riding the wave of the global shipbuilding industry’s recovery, China’s shipbuilding sector is seeing clear upcycle opportunities. In H1, Hengli Heavy Industry signed 207 new vessel orders, with cumulative orders on hand exceeding 500 vessels, and its delivery schedule has been locked in through 2030; China State Shipbuilding’s delivery cycle is also scheduled through 2030; and Sumec’s newly won orders in Q1 2026 surged by more than 600% YoY. Overall, orders at leading shipbuilders in China are generally full, and industry dividends are being released. Amid the high-prosperity cycle, potential risks also warrant attention. Analysts noted that overly rapid capacity expansion under optimistic sentiment should be guarded against. In addition, variables such as trade policy disruptions, divergence in segmented demand, and shortcomings in fuel technologies may constrain the industry’s upside room and profitability. 05 ★★ [ Mongolia’s Coal Exports Reached 59.21 Million mt in H1 2026 ] According to statistical data released by Mongolia’s customs authorities, from January to June 2026, Mongolia’s cumulative coal exports totaled 59.2149 million mt, with average monthly coal exports close to 10 million mt, an increase of 21.34 million mt compared to the same period last year, up 56.3% YoY. Among them, hard coal exports were 56.8428 million mt, up 62.0% YoY; lignite exports were 2.3721 million mt, down 15.2% YoY. In June, Mongolia’s coal exports continued to surge, with monthly exports reaching 10.3057 million mt, up 69.0% YoY and up 4.8% MoM. Of this, hard coal exports stood at 9.9272 million mt, up 72.7% YoY and up 4.3% MoM; lignite exports were 378,400 mt, up 8.8% YoY and up 17.8% MoM. ★ Other Hot Topics ★ ⭕ [Tata Steel’s Q1 FY2027 India Crude Steel Production at 5.82 Million mt] Indian steelmaker Tata Steel Group released its production and delivery data for Q1 FY2027 (April 1, 2026 to June 30, 2026). Tata Steel India’s crude steel production reached 5.82 million mt, down about 6% MoM and up 11% YoY, primarily driven by higher output at the Jamshedpur and Kalinganagar plants; during the same period, its India deliveries stood at 5.17 million mt, down about 16% MoM and up about 9% YoY, with domestic deliveries up 11% YoY. ⭕[Fangda Jiugang Successfully Trial-Rolls 36mm Large-Size HG6E/C High-Strength Seismic Rebar] Recently, Fangda Jiugang successfully trial-rolled 36mm large-size HG6E/C high-strength seismic rebar for the first time. Testing shows that all performance indicators, dimensional accuracy, and surface quality comply with relevant standards, marking a major breakthrough in the high-end construction steel segment for the enterprise. HG6E/C is a 635MPa-grade ultra-high-strength seismic rebar, a high-grade, high-end specialty steel for construction, offering significant comprehensive advantages over conventional rebar used in general engineering. ⭕ [Tsingshan Special Material Stainless Steel Deep-Processing Project Commissioned] The “Four-Chain” Integration Promotion Meeting for the stainless steel industry chain and the Tsingshan Special Material Launch & Development Conference were held in Zhouning County. Attendees included Xiang Guangda, Chairman of Tsingshan Holding Group; Zhang Jimin, Chairman of Xintuo Group; Zhang Longqiang, Deputy Secretary General of the China Iron and Steel Association (CISA) and Party Secretary and President of the Metallurgical Industry Information and Standards Research Institute; Li Yan, Member of the Standing Committee of the Municipal Party Committee and Executive Vice Mayor; Wang Qingjie, Executive President of the Stainless Steel Branch of CISA; Zhang Luyao, Chairman of Fujian Tsingshan Special Materials Co., Ltd.; Lei Chunxiong, Secretary of the County Party Committee; Yang Chenxia, Director of the Comprehensive Division of the Provincial Department of Industry and Information Technology; and Zheng Jinsi, Deputy Director of the Municipal Bureau of Industry and Information Technology. The meeting was chaired by Chen Dongyue, Deputy Secretary of the County Party Committee, Secretary of the Party Leadership Group of the County Government, and Acting County Magistrate. * This report is an original work and/or compilation of SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"), and SMM holds the copyright in accordance with the Copyright Law of the People's Republic of China and other applicable laws, regulations, and international treaties. Without written permission, no one may reproduce, modify, sell, transfer, display, translate, compile, and disseminate or otherwise disclose the above content to any third party or permit any third party to use it. Once discovered, SMM will pursue legal liability for infringement, including but not limited to demanding the assumption of contractual liability for breach of contract, restitution of unjust enrichment, and compensation for direct and indirect economic losses. 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★ Macro ★ 01 ★★ [Oil Prices May Return to the 7-Yuan Era] According to China's refined oil product price adjustment cycle, the 13th adjustment window of the year will open at 24:00 on July 3, with only 3 statistical working days remaining and 70% of the current pricing cycle completed. As reported by Dazhong Daily, the decline in oil prices has continued to widen during this cycle, deepening for six consecutive days from an initial drop of just over 0.4 yuan to the current level exceeding 0.65 yuan. The trend of a substantial cut appears largely irreversible, and this Friday evening may mark the year's first triple consecutive decline in oil prices, as well as the fourth price reduction in 2024. As of the calculation data from the 7th working day, estimated figures show a cut of 820 yuan/mt for gasoline and 790 yuan/mt for diesel. Converted to retail terminal unit prices, estimates show a drop of 0.66 yuan per liter for 92-octane gasoline, 0.7 yuan per liter for 95-octane gasoline, and 0.68 yuan per liter for 0# diesel. The two previous adjustments in June had already achieved a double consecutive decline, with cumulative cuts of 1,040 yuan/mt and 1,000 yuan/mt for gasoline and diesel respectively, equivalent to a cumulative price drop of between 0.84 and 0.89 yuan per liter. The price of 92-octane gasoline has fallen below 8 yuan, returning to the 7-yuan range. Once this round of cuts takes effect, the national average price for 95-octane gasoline may fall below 8 yuan, re-entering the 7-yuan era. 02 ★★ [US and Iranian Officials to Hold Indirect Talks in Doha] Sources stated on July 1 that officials from the US and Iran will hold indirect talks in the Qatari capital, Doha, later that day. ★ Industry and Downstream ★ 01 ★★ [Shenzhen Real Estate Market Hits New High for June Transactions in Nearly Six Years] According to data released today by the Shenzhen Centaline Research Center, first-hand and second-hand residential transactions in Shenzhen totaled 8,878 units in June, down 11.9% MoM yet up 14.2% YoY. The combined transaction volume was the highest for the same period since 2021. Specifically, online registrations for new housing (pre-sale and existing) amounted to 3,785 units, a decrease of 16.7% MoM but an increase of 15.6% YoY, while second-hand housing transfers reached 5,093 units, down 8% MoM but up 13.1% YoY. Monitoring data indicates that both new home pre-sales and second-hand home transactions in Shenzhen for the month reached record highs for the same period over the past six years, marking the best June performance for the property market in nearly six years. 02 ★★ [China-Made Air Conditioners See Export Orders Surge from Europe] Data shows that only about 20% of European households have air conditioning installed. Due to the concentrated surge in European demand for cooling, export orders for Chinese-made air conditioners have continued to grow. Air conditioning enterprises are working overtime to produce and fulfill these export orders. At an enterprise's air conditioner production workshop in Jiangmen, Guangdong, workers are rushing to assemble air conditioner parts. Since March this year, the enterprise’s export orders to the European market saw a sharp increase, with exports in May exceeding 800,000 units, up 20.3% YoY. The person in charge told the reporter that many residential buildings in Europe were built long ago, building facades are subject to strict controls, and installation procedures for traditional split air conditioners are complicated with high approval thresholds. Mobile air conditioners produced by Chinese enterprises, which require no outdoor unit and no wall drilling, precisely match the usage scenarios of local homes, apartments, and shops. An air conditioner enterprise’s sales in the French market in June surged over 100% YoY, while its Italian market sales rose 30% YoY in June. 03 ★★ [Chongqing: Promoting Housing "Trade-in" and Optimizing Support Policies such as "Selling Smaller to Buy Larger" and "Transfer with Mortgage"] The Chongqing Municipal Housing and Urban-Rural Development Committee is publicly soliciting opinions on the "Chongqing Urban Housing High-Quality Development 15th Five-Year Plan (Draft for Comments)". It proposes to promote a virtuous cycle in the new and second-hand housing markets, advance housing "trade-in", optimize support policies such as "selling smaller to buy larger" and "transfer with mortgage", reduce transaction costs, and foster synergy between the new and second-hand housing markets. Based on the "Yuyue Anju" system, fully implement online contract signing services for existing homes, establish and improve mechanisms for supervision of existing home transaction funds, listing and release of property listings, and price monitoring; simplify the transaction process, strengthen real estate registration information sharing, automatically verify property information, and promote "one-stop acceptance" and full online processing of transaction services. 04 ★★ [TISCO Steel Science & Technology Company Successfully Trials T1100S-Grade Ultra-High-Strength Carbon Fiber in a Single Attempt] According to China Baowu, recently, the TISCO Steel Science & Technology Company under China Baowu successfully trial-produced T1100S-grade ultra-high-strength carbon fiber in a single attempt, with excellent performance across all key indicators, reaching domestic leading and international advanced levels. Carbon fiber is a key strategic material supporting aerospace and high-end equipment manufacturing. From aircraft structural components to rocket casings, breakthroughs in lightweight materials directly determine the performance ceiling of equipment. The T1100S grade, meanwhile, is a top-tier high-modulus, ultra-high-strength carbon fiber in the industry, with extremely high technical barriers, and has long been a key focus of China’s new material breakthroughs. 05 ★★ [In H1, New Home Prices in 100 Chinese Cities Edge Up Cumulatively, While Second-Hand Home Prices Fall] In the first half of this year, new home prices in 100 Chinese cities continued a structural uptrend. In June, the average new home price in the 100 cities was 17,184 yuan per m², up 0.16% MoM and up 2% YoY. Second-hand home prices in the 100 cities fell cumulatively. In June, the average second-hand home price in the 100 cities was 12,639 yuan per m², down 0.42% MoM and down 7.68% YoY. Core cities were the first to show positive signals: Shenzhen’s second-hand home prices turned to a month-on-month increase in June, while Shanghai’s second-hand home prices rose MoM for four consecutive months. ★Other Hot Topics★ ⭕ [China Fully Enters Main Flooding Season Today] Starting July 1, China fully entered the main flooding season. According to forecasts and comprehensive assessments, during the main flooding season (July–August), both northern and southern China will see areas of heavy rainfall, with the north facing relatively severe flooding, more frequent localized extreme rainstorms and floods, and stronger typhoons moving northward to affect inland areas. Meanwhile, parts of the southwest and northwest may experience periodic droughts due to high temperatures and low rainfall. The flood control and drought relief situation is severe and complex. On the morning of July 1, the Ministry of Water Resources organized a rolling consultation to analyze and assess the current and near-term development of rainfall, water conditions, flooding, and drought, and deployed targeted key preventive measures accordingly. Based on the 24-hour rainfall forecast, the ministry issued province-specific targeted early warnings to 14 provinces (autonomous regions and municipalities), including Liaoning, Shanghai, Zhejiang, Anhui, Jiangxi, Hubei, Hunan, Guangxi, Sichuan, Guizhou, Yunnan, Gansu, Qinghai, and Xinjiang. These warnings detailed lists of counties (cities and districts) under heavy rainfall coverage, reservoir lists, and flash flood disaster risk areas and locations, and reminded relevant parties to ensure safe reservoir operation during flooding, and to guard against small and medium river floods and flash flood disasters. ⭕ [Domestic Route Fuel Surcharges to Be Sharply Cut from July 5] 9 Air issued a notice today stating that effective July 5, 2026 (ticket issuance date), domestic route fuel surcharges will be reduced. For routes over 800 kilometers, each passenger will be charged 100 yuan, and for routes of 800 kilometers or less, each passenger will be charged 50 yuan, representing cuts of 50 yuan and 30 yuan, respectively, from the previous levels. In April and May this year, domestic fuel surcharges were raised significantly for consecutive months. Starting June 5, they were reduced by 20 yuan and 10 yuan for the two categories. With the decline in fuel prices, the fuel surcharge reduction in July is much larger. ⭕ ["US ADP Employment Data" Lower Than Expected] US ADP employment for June was 98,000, the lowest increase since March, below the expected 118,000. The prior reading was 122,000. *This report is an original work and/or compilation produced exclusively by SMM Information & Technology Co., Ltd. (hereinafter referred to as "SMM"). SMM legally holds the copyright and is protected by the Copyright Law of the People's Republic of China and other applicable laws and international treaties. No reproduction, modification, sale, transfer, display, translation, compilation, dissemination, or any other form of disclosure of the above content to third parties or licensing thereof is permitted without written authorization. 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Furthermore, any losses or liabilities arising from the unauthorized or illegal use of the views in this report are unrelated to SMM. SMM reserves the right to amend and the final right to interpret the terms of this statement. ​

Around the Dragon Boat Festival, reporters visited Beijing, Shenzhen, and Shanghai and found that viewing numbers and trading volumes for popular new and second-hand housing projects had recovered, while demand for improved housing was released at a faster pace. Experts believe that, against the backdrop of policy support and stabilizing home prices, the property markets in first-tier cities have seen marginal improvements, with their role as a market barometer growing more prominent. This helps boost home buying confidence nationwide, though the strength and sustainability of the subsequent market recovery remain to be seen.

SMM June 3 News: Metals market: As of the midday close, base metals on the domestic market rose nearly across the board. SHFE copper gained 1.03%, SHFE aluminum rose 0.45%, SHFE lead rose 0.45%, SHFE zinc gained 1.61%, SHFE tin rose 1.83%, and SHFE nickel fell 0.64%. In addition, the most-traded casting aluminum futures rose 0.39%, and the most-traded alumina futures fell 1.51%. The most-traded lithium carbonate futures continued the downtrend from the previous two trading days, falling 2.58%. The most-traded silicon metal futures rose 0.63%. The most-traded polysilicon futures fell 1.96%. Ferrous metals showed mixed performance. Iron ore was flat at 784.5 yuan/mt, rebar edged down 0.09%, hot-rolled coil fell 0.21%, and stainless steel rose 0.2%. Coking coal and coke: the most-traded coking coal contract fell 0.26%, and the most-traded coke contract rose 0.18%. Overseas base metals, as of 11:41, LME metals showed mixed performance. LME copper fell 0.34%, LME aluminum rose 0.17%, LME lead and LME nickel both fell within 0.4%. LME zinc and LME tin edged up. Precious metals, as of 11:41, COMEX gold fell 0.16% and COMEX silver fell 0.29%. Domestic precious metals: the most-traded SHFE gold contract rose 0.07%, and the most-traded SHFE silver contract rose 0.18%. In addition, as of the midday close, the most-traded platinum futures fell 0.82%, and the most-traded palladium futures rose 1.02%. As of the midday close, the most-traded Europe containerized freight index contract fell 0.67%, closing at 3,758 points. As of 11:41 on June 3, midday futures quotes for selected contracts: Spot and fundamentals Copper: Today, #1 copper cathode spot prices against the front-month contract in North China were reported at an average discount of 400 yuan/mt to a discount of 300 yuan/mt, with the average discount of 350 yuan/mt down 20 yuan/mt from the previous trading day. The average transaction price was 106,360 yuan/mt, up 825 yuan/mt from the previous trading day... Macro front China: [PBOC reverse repo operations achieved a net withdrawal of 177.6 billion yuan on the day] The PBOC conducted zero reverse repo operations today. As 177.6 billion yuan in 7-day reverse repos matured today, a net withdrawal of 177.6 billion yuan was achieved on the day. [ Zibo, Shandong: Optimizing housing provident fund usage policies ] Zibo officially implemented new optimized provident fund policies, adopting multiple measures to boost housing consumption and safeguard residents' essential and upgrading housing needs. The new policies broadened the scope of provident fund withdrawals, allowing down payment and owner-occupied housing withdrawals to be linked with funds from the homebuyer's spouse, both parents, and children. Elevator installation withdrawals were also expanded to include old elevator replacement scenarios. Lending side, housing unit count can be reduced for families with multiple children, purchases of high-grade residential properties or completed homes, and one loan record can be waived for trade-in policies; the upper limit of second-hand housing age plus loan term was raised to 50 years, and the lending ban on properties over 300㎡ was lifted. The new policy added loan extension services, while opening up commercial-to-provident fund and commercial-to-combined loan conversions for flexible employment workers, further reducing residents' home purchase and repayment costs. US dollar: As of 11:41, the US dollar index rose 0.03% to 99.24. US April JOLTs job openings surged from 6.89 million in March to 7.62 million, reaching the highest level in nearly two years, while layoffs declined. These signs indicated that the labour market remained robust despite pressure on enterprises from rising energy costs caused by the Iran war. The professional and business services sector accounted for nearly all of the increase. Total hiring fell to 5.12 million, partially offsetting the sharp increase in March, while layoffs also declined to 1.69 million. These data suggested that US labour demand has stabilized this year compared to near-zero job growth in 2025. Although job openings remained well below levels reached during the post-pandemic reopening period, this stability may further undermine the case for interest rate cuts, with US Fed officials increasingly discussing the possibility of rate hikes. According to CME "FedWatch": the probability of the US Fed maintaining rates unchanged through June was 98.6%, with a 1.4% probability of a cumulative 25 basis point interest rate cut. The probability of the US Fed maintaining rates unchanged through July was 92.4%, with a 6.3% probability of a cumulative 25 basis point rate hike, and a 1.3% probability of a cumulative 25 basis point interest rate cut. Fed Chairman Waller has hired two outside individuals as advisors to assist him in the early stages of his tenure; one of them co-authored a conservative policy blueprint that recommended sweeping structural reforms to the US Fed. According to people familiar with the matter, one of the advisors is Paul Winfree. He served as a White House domestic policy expert during Trump's first term. He is also a credited author of the US Fed chapter in "Project 2025," a conservative policy blueprint developed ahead of the 2024 election. The other advisor is Daniel Heil, a policy fellow at Stanford University's Hoover Institution who served as an economic policy advisor to the 2016 presidential campaign team. His recent writings have primarily focused on cutting federal healthcare spending costs and social security issues. Both individuals have long been active in conservative policy circles, and their professional backgrounds lie in areas outside the US Fed's core responsibilities. A person familiar with the matter said the two advisors would work on temporary contracts to assist Warsh with policy analysis and planning; Warsh has not yet made a final decision on whether they will take on longer-term, formal job titles within the US Fed. (Jin10 Data APP) Other currencies: Traders were reluctant to push the yen exchange rate above the key 160 level amid the risk of intervention by Japanese authorities to support the yen. The yen edged down to near 160 in early Wednesday trading, touching its weakest level since the authorities intervened in late April. The yen still declined despite Japan spending a record 11.73 trillion yen ($73.35 billion) to support the currency between April 28 and May 27. Finance Minister Katayama Satsuki reiterated on Wednesday that the authorities were prepared to respond to foreign exchange fluctuations at any time as needed. Gaitame.com Research Institute analyst Nakamura Tsutomu said: "As USD/JPY approaches the 160 level, intervention concerns are escalating rapidly, triggering a psychological battle in the market, but a test of 160 could happen at any time. With almost no signs of a breakthrough in US-Iran permanent ceasefire negotiations, pressure on the yen is increasing. The large interest rate differential between the US and Japan is also putting the yen under pressure after the Bank of Japan kept rates unchanged in April. Bank of Japan Governor Ueda Kazuo is scheduled to speak on Wednesday afternoon, his last scheduled speech before the central bank's rate-setting meeting on June 16." Overnight index swaps indicated the probability of a rate hike this month was approximately 84%. (Jin10 Data APP) Australia's economic growth slowed more than expected last quarter as households cut spending in the face of rising fuel costs and higher interest rates. Government data released on Wednesday showed GDP grew 0.3% in the first three months of the year, below expectations and roughly one-third of the Q4 2025 growth rate. The 2.5% annual growth rate also fell short of expectations. The head of national accounts at the Australian Bureau of Statistics said: "Economic growth slowed in the March quarter, with mild household and public sector spending. Rising interest rates and significantly higher fuel costs in March likely created an environment of more cautious consumer behavior." Swap traders consolidated the view that the probability of a rate hike at the August meeting was only slightly above 50%, and maintained the view that the Reserve Bank of Australia may raise rates once more before year-end. (Jin10 Data APP) Data: Data to be released today include US May ADP employment, US May S&P Global Services PMI final, US May ISM Non-Manufacturing PMI, US April factory orders month-over-month, France May Services PMI final, Eurozone May Services PMI final, Eurozone April PPI month-over-month, Germany May Services PMI final, UK May Services PMI final, and Australia Q1 GDP annual rate. In addition, attention should be paid to: Bank of Japan Governor Ueda Kazuo will deliver a speech, and US Fed Governor Barr will participate in a dialogue at the 2026 Community Development Bankers Association Peer Forum. Crude oil: As of 11:41, oil prices in both markets rose, with WTI up 0.92% and Brent up 0.82%. According to CCTV News: On June 2 local time, the US Central Command stated that US forces took action against an oil tanker heading to an Iranian port in the Arabian Gulf and disabled it. The war between Iran and the US has no end in sight, diplomatic negotiations have stalled, and military conflicts in the Gulf region continue to escalate. A series of developments indicate that this conflict, which erupted in late February this year, continues to drain all parties through repeated frictions. Oil prices rose after the news broke. (Wallstreetcn) US API crude oil inventory for the week ending May 29 was -6.757 million barrels, vs. expectations of -3.605 million barrels and a prior value of -2.819 million barrels. US API gasoline inventory for the week ending May 29 was 3.454 million barrels, vs. expectations of -98,000 barrels and a prior value of -3.199 million barrels. (Jin10 Data APP) Spot market overview: ► ► ► ► ► ► ► ► ► ► ► ► ►

SMM, May 29: Following the State Council's release of the Urban Renewal 15th Five-Year Plan, the real estate industry received new policy catalysts. On May 29, the real estate development sector rose accordingly, with the market optimistic about incremental investment opportunities in areas such as urban village renovation, old residential community upgrades, and municipal infrastructure construction following the plan's implementation. As of the close on May 29, the real estate development sector gained 0.68%, and real estate services rose 0.26%. In terms of individual stocks, Fuxing Co., Sunshine Co., Tianjian Group, Xiangjiang Holdings, Everbright Jiabao, and several others hit the daily limit, while Vanke A, Financial Street, Tefа Services, and China Merchants Shekou led the gains. News [State Council Releases Urban Renewal 15th Five-Year Plan: City-Specific Policies to Increase Supply of Upgraded Housing and Regulate Development of Housing Rental Market] The State Council released the Urban Renewal 15th Five-Year Plan. The plan proposes to comprehensively assess the base of existing urban asset resources, promote classified disposal of land that has been allocated but not yet developed and projects under construction, and revitalize idle and underutilized old factory buildings, commercial and office properties, commodity housing, and public housing. It is expected to accelerate the construction of a new model for real estate development and improve fundamental systems for commodity housing development, financing, and sales. The plan calls for optimizing the supply of affordable housing, strengthening housing security for low-income urban households with housing difficulties, better meeting the basic housing needs of working-class groups facing housing difficulties with modest incomes, and gradually addressing the transitional housing difficulties of new urban residents, young people, and other groups. City-specific policies are expected to increase the supply of upgraded housing and regulate the development of the housing rental market. The plan encourages real estate development enterprises to transform and participate in urban renewal. It is expected to deepen the reform of the housing provident fund system, expand its scope of use, strive to meet the diversified housing needs of contributors at different stages, and support flexible employment workers in participating in the housing provident fund system. The plan also aims to strengthen and regulate the management of existing urban infrastructure assets. [Huang Guanglie, Deputy Secretary General of Guangzhou Municipal Government: Confident in Further Consolidating the Stabilizing and Improving Trend of Guangzhou's Property Market] On May 26, Guangzhou held a press conference on the supporting documents for the Implementation Opinions on Further Promoting Stable and Healthy Development of the Real Estate Market. Huang Guanglie, Deputy Secretary General of the Guangzhou Municipal Government, stated that going forward, Guangzhou will continue to improve the two major systems of the housing market and housing security, and continuously optimize property market regulation measures. The Municipal Bureau of Planning and Natural Resources, the Municipal Bureau of Housing and Urban-Rural Development, the Municipal Provident Fund Center, and other departments have issued supporting rules on matters such as land supply, special subsidies for "sell old, buy new," and "commercial-to-provident fund loan conversion." Huadu District responded swiftly by launching eight specific measures. State-owned enterprises represented by Guangzhou Anju Group are accelerating the launch of pilot work on the acquisition and revitalization of second-hand housing. We believe that as these detailed rules are fully implemented and all sectors advance in coordination, we are confident in further consolidating the stabilizing and improving trend of Guangzhou's property market. (Jin10 Data APP) [Guangzhou's Real Estate Market Activity Has Been Continuously Rising Since May] On May 26, Guangzhou held a press conference on the series of supporting documents for the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market." Huang Guanglie, Deputy Secretary General of the Guangzhou Municipal Government, noted that on April 30, Guangzhou issued the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market" (known as the "Sui Eight Measures"). As the policy effects continued to release, market activity kept rising. Since May, weekly visits, subscriptions, and online signings at key new residential projects citywide increased by 26.9%, 36.9%, and 11.4% WoW, respectively; weekly signing volume of pre-owned residential properties rose 9.3% WoW, while new listing volume decreased 16.7% YoY. The new housing provident fund policy took effect, with 4,484 loan applications accepted totaling 4.746 billion yuan, up 47.05% and 56.43% YoY, respectively. [Guangzhou: Removing Restrictions on "Only Housing in the City" and Number of Provident Fund Loan Uses] On May 26, 2026, the Guangzhou Housing Provident Fund Management Center issued the normative document "Measures for Converting Commercial Personal Housing Loans to Housing Provident Fund Personal Housing Loans in Guangzhou (Interim)." It proposed expanding the scope of commercial loan banks by removing the restriction that "the original commercial loan bank must be a housing provident fund entrusted bank," allowing commercial loans from non-housing provident fund handling banks to be converted into pure housing provident fund loans. Requirements on loan types, terms, and provident fund contribution periods were relaxed. For commercial-to-provident-fund conversion handled by housing provident fund loan handling banks, applicants whose convertible provident fund loan amount is not enough to fully repay the original commercial loan principal and interest may choose to convert to a combined loan. The requirement for account opening and cumulative housing provident fund contribution period was reduced from "60 months" to "36 months." The original commercial loan disbursement period was shortened from "more than 3 years" to "more than 2 years." Restrictions on "only housing in the city" and the number of provident fund loan uses were removed, no longer requiring that "the mortgaged property is the applicant's family's only housing in the city," supporting applications for first and second improved housing. Applicants who "have never used or have used housing provident fund loans only once" may also apply for commercial-to-provident-fund conversion, free from the restriction of "never having used housing provident fund loans." (Jin10 Data) [Xiong'an New Area: Maximum Housing Provident Fund Loan Amount Raised to 800,000 Yuan] Notice of the Xiong'an New Area Housing Management Center on Optimizing and Adjusting Housing Provident Fund Withdrawal and Loan Policies. The policy stipulates that for depositors meeting the New Area's rental housing withdrawal conditions, those who have not registered a housing lease contract may withdraw up to 17,000 yuan per year; those who have registered a housing lease contract on the "Hebei Xiong'an New Area Housing Rental Information Service Platform" may withdraw up to 25,000 yuan per year. Depositors purchasing owner-occupied housing in the New Area and applying for housing provident fund loans may borrow up to 800,000 yuan. Employees of Beijing-sourced relocated units whose housing provident fund deposit location is in the New Area may borrow up to 1.2 million yuan when purchasing owner-occupied housing in the New Area and applying for housing provident fund loans. Families with two or more children purchasing owner-occupied housing in the New Area and applying for housing provident fund loans may have their maximum loan amount increased by 200,000 yuan. For employee families who have only one housing provident fund loan record nationwide that has been fully repaid and own no property in the New Area, the first-home housing provident fund loan policy shall apply. (Xiong'an Provident Fund) [Supreme Court's Liu Guixiang: Preventing and Resolving Risks in Key Areas Such as Finance and Real Estate] On May 27, Liu Guixiang, Vice-Ministerial-Level Full-Time Member of the Adjudication Committee and Second-Grade Grand Justice of the Supreme People's Court, stated at a press conference held by the State Council Information Office that the people's courts will fully safeguard national security and social stability, punish criminal acts that endanger national security, public safety, and undermine the socialist market economic order in accordance with the law, and adhere to market-oriented and rule-of-law principles to coordinate administrative, civil, and criminal adjudication functions to prevent and resolve risks in key areas such as finance and real estate. [China Index Academy: Property Developers' Bond Financing in April Up Nearly 30% YoY] The latest data released by the China Index Academy showed that in April, total bond financing in the real estate sector reached 61.48 billion yuan, up 28.8% YoY and up 18.5% MoM. Specifically, credit bond financing in the real estate sector totaled 37.48 billion yuan (up 2.6% YoY, down 9.1% MoM), accounting for 61%; ex-China bond financing was 3.43 billion yuan, accounting for 5.6%; ABS financing was 20.57 billion yuan (up 83.9% YoY, up 93.1% MoM), accounting for 33.5%. [Marco Polo: Q2 Sales Improved QoQ] Marco Polo stated at a recent earnings briefing that in Q1 2026, affected by the late Chinese New Year holiday and slow market activation, the industry overall declined YoY to some extent. Since Q2, the real estate market in some cities has shown structural stabilization and recovery, with new home markets broadly stopping falling, and second-hand housing prices in core cities such as Guangzhou, Shenzhen, and Hangzhou beginning to rise with active transactions. The company adopted multiple measures, including building regional empowerment centers, promoting the sinking of its dealer network, expanding non-residential project business, and strengthening cooperation with whole-house decoration enterprises, resulting in a QoQ improvement in sales in Q2. [Guangzhou Anju Group to Launch Pilot Work Supporting Residents in "Selling Old and Buying New"] On May 26, Guangzhou held a press conference on the series of supporting documents for the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market." Qian Zhe, Deputy Secretary of the Party Committee and General Manager of Guangzhou Anju Group, stated that to support residents in improving their housing conditions and facilitate the exchange chain between pre-owned and new housing, Anju Group will immediately launch pilot work supporting residents in "selling old and buying new," with a trial period ending on December 31, 2026. Following the principle of "government guidance, market-based operation, and voluntary participation," the group will acquire pre-owned residential properties through market-oriented approaches. The pilot acquisition targets pre-owned residential properties within Guangzhou's Ring Expressway, with a total price of no more than 3 million yuan, a floor area of less than 70 m², and no restriction on building age. The acquired old properties will be prioritized for use as affordable housing, talent apartments, and other purposes, primarily serving the housing needs of new urban residents, young people, and other groups, as well as resident relocation for urban self-renewal projects. [Guangzhou Huadu District Sees "Rising Volume, Stable Prices, and Active Transactions" After New Policy Implementation] On May 26, Guangzhou held a press conference on the series of supporting documents for the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market." Mai Shaoming, Deputy District Head of Huadu District, Guangzhou, stated that after the implementation of the "Eight Measures for Guangzhou," Huadu District took the lead in the city to introduce the "Eight Measures for Huadu." Since the new policy took effect, the real estate market in Huadu District has seen a sustained rebound in market activity and a continuous release of transaction vitality. Project visits, subscriptions, policy inquiries, and pre-owned housing market transactions all surged significantly. Policy inquiries focused on core topics such as pre-sale school enrollment eligibility, online contract-based school enrollment, and trade-in policy subsidies. The overall market demonstrated a positive trend of "rising volume, stable prices, and active transactions." [Xiamen Introduces Six Housing Provident Fund Measures: "Sell Old, Buy New" Loans to Be Executed at First-Home Interest Rates] On May 19, the Xiamen Housing Provident Fund Center announced on its website that, in order to implement the spirit of the "Several Opinions on Further Promoting the Stable Development of the Real Estate Market" issued by the Fujian Provincial Department of Housing and Urban-Rural Development, and in light of Xiamen's actual conditions, the city introduced six housing provident fund measures upon approval by the Xiamen Housing Provident Fund Management Committee. Among them, it was proposed that "sell old, buy new" loans be executed at first-home interest rates. If a depositor sells a self-owned property within Fujian Province and purchases a second self-occupied property in Xiamen within 12 months, and applies for a housing provident fund loan that meets the lending conditions, the loan will be executed at the first-home housing provident fund loan interest rate. Housing provident fund loans for multi-child families are executed at first-home loan interest rates. For multi-child families purchasing a second owner-occupied home in the city and applying for housing provident fund loans, those meeting the provident fund loan conditions will have loans executed at first-home housing provident fund loan interest rates. [Hunan Issued Policies to Support Acquisition of Existing Commercial Housing and Housing "Trade-in"] On May 13, the Hunan Provincial Department of Housing and Urban-Rural Development, together with nine departments including the Provincial Development and Reform Commission and the Provincial Department of Finance, issued the "Several Measures of Hunan Province to Further Promote Stable and Healthy Development of the Real Estate Market." This "New Xiang Ten Measures" is an optimization and upgrade based on the 2025 "Several Measures of Hunan Province to Promote Stable and Healthy Development of the Real Estate Market," focusing on formulating relevant support measures in areas such as acquisition of existing commercial housing, housing "trade-in," "quality housing" construction, "three-in-one" housing projects, and provident fund policy optimization. The "New Xiang Ten Measures" specified that for loans applied for purchasing newly-built commercial housing within the province (including housing provident fund loans and commercial loans), housing unit counts are determined at the county/city/district (park) level; for those already owning housing in the county/city/district (park) where the intended purchase is located, one housing unit is deducted from the count; the minimum down payment ratio of 30% for commercial property loans is implemented. [Hunan: College Graduates and High-level Talents Staying in or Coming to Hunan for Employment and Entrepreneurship Can Apply for Loans After 1 Month of Provident Fund Contributions] On May 13, the Hunan Provincial Department of Housing and Urban-Rural Development and eight other departments issued the "Several Measures of Hunan Province to Further Promote Stable and Healthy Development of the Real Estate Market." The "New Xiang Ten Measures" proposed that for college graduates, young talents, and high-level talents staying in or coming to Hunan who apply for housing provident fund loans for their first home purchase within the province, they can apply after only 1 month of contributions, with maximum preferential down payment ratios, and the maximum loan amount may not be linked to account balances but reasonably determined based on work compensation base and labor (employment) contract duration. Among them, the maximum housing provident fund loan amount for high-level talents can be relaxed to 4 times the standard, and for college graduates and young talents staying in or coming to Hunan for employment and entrepreneurship, it can be relaxed to 2 times. For first-marriage and first-birth families and families with two or more children using housing provident fund loans to purchase newly-built commercial housing, the loan amount cap is further increased by more than 30%. The age limit for housing provident fund personal loans is extended, with a maximum of 5 years added beyond the statutory retirement age. [A Residential Land Parcel in Nanchang Sold at 12.5% Premium] On May 8, Nanchang sold a residential land parcel with a transfer area of 12.1409 mu and a planned building area of 9,712.72 sqm, with a floor area ratio of 1.1. The starting land price was 4 million yuan/mu, totaling a starting price of 48.56 million yuan, with a starting floor price of 5,000 yuan/sqm. Ultimately, Yingtan Wanjing Real Estate Development Co., Ltd. won the land parcel at a land price of 4.5 million yuan per mu, equivalent to a total price of 54.63 million yuan, with a transaction floor price of 5,625 yuan/㎡ and a premium rate of 12.5%. [Beijing Real Estate Market Activity Climbs, Pre-owned Home Trading Volume Hits Nearly 5-Year High] During this year's Labour Day holiday, as new real estate policies were intensively rolled out in multiple cities, real estate market activity climbed. In Beijing, the pre-owned housing market continued the momentum since April, with trading volume and showing volume rising steadily. The latest data showed that during the first four days of the Labour Day holiday, the number of pre-owned home transactions in Beijing surged 72% YoY, indicating strong market performance. In April, which just ended, Beijing's pre-owned home trading volume reached nearly 18,000 units, hitting the highest level for the same period in nearly five years. [Guangzhou Labour Day Holiday New Residential Subscription Volume Up Over 50% YoY] On May 6, it was learned from the Guangzhou Municipal Housing and Urban-Rural Development Bureau that during the Labour Day holiday, Guangzhou's real estate market activity rebounded significantly, with both new and pre-owned residential markets improving in tandem and a clear recovery trend in the property market. Data showed that from May 1 to 5, the new residential market in Guangzhou heated up notably, with a citywide daily average of 8,692 visits to new residential projects (up 30.8% YoY) and a daily average subscription volume of 634 units (up 50.1% YoY). The pre-owned residential market maintained steady growth. During the holiday, daily average showings and daily average subscription volume grew 15.6% and 5.2% respectively compared with April, while subscription volume was up 63.4% YoY. Meanwhile, new listing volume of pre-owned homes pulled back somewhat. A spokesperson from the Guangzhou Municipal Housing and Urban-Rural Development Bureau stated that on April 30, Guangzhou issued implementation guidelines on further promoting stable and healthy development of the real estate market, proposing multiple measures covering areas such as optimizing housing provident fund usage and facilitating property swap chains. The policy dividends were quickly transmitted, and market response was evident. [Zhongshan, Guangdong: Pre-owned Housing Acquired by Developers Can Be Resold; Minimum Down Payment for Commercial Property Loans Set at 30%] The Zhongshan Municipal Housing and Urban-Rural Development Bureau of Guangdong Province issued the "Several Measures for Continuously Promoting Stable and Healthy Development of the Real Estate Market in Zhongshan" to further implement the digestion of existing housing inventory and optimize incremental housing supply, and to better meet residents' essential and upgrading housing needs. The "Several Measures" comprised seven articles, including continuing to support residential housing trade-in policies; encouraging market-oriented operation of commodity housing trade-in programs; increasing housing provident fund support for home purchases; optimizing the criteria for determining the number of housing units under provident fund loans; accelerating destocking of commercial properties and encouraging multiple approaches to revitalize existing resources; increasing financial support and lowering the minimum down payment ratio for commercial property purchase loans; and piloting housing voucher-based resettlement compensation. Among them, the Several Measures stipulate that repurchased old housing can be resold, renovated and then sold, or used for market-oriented rental housing, talent apartments, affordable rental housing, etc. The minimum down payment ratio for commercial property purchase loans was adjusted to no less than 30%. [China Real Estate News: Stabilizing the Property Market Requires Good "Forward Planning"] On May 4, China Real Estate News published an editorial stating that amid complex and volatile internal and external shocks, the property market's performance since the beginning of this year was hard-won, and will lay a solid foundation and inject firm confidence for efforts to stabilize the real estate market. Therefore, the upcoming months of May and June are crucial, and localities should continue to do good "forward planning." The more detailed and thorough the work on "forward planning" for stabilizing the real estate market, the more solid the foundation for market stability. The stability and vitality of the property market should be reflected in the transformation of "good housing" toward higher quality, and the innovation momentum of "good housing" should be further released and continuously expanded. The stability and vitality of the property market should also be reflected in the overall satisfaction of demand, and the housing replacement cycle should be further facilitated. The core value of the housing trade-in policy lies in breaking this deadlock through institutional innovation. Localities should build bridges between old housing disposal and new housing purchase through government guidance, state-owned enterprise participation, and market-based operations, both facilitating the replacement process and reassuring buyers of price stability. Meanwhile, financial support will be increased for converting existing commercial housing into affordable housing, resettlement housing, dormitories, and talent housing. This will provide stable absorption channels for inventory to accelerate market clearing, effectively broaden the supply sources of affordable housing, shorten construction cycles, and address the housing difficulties of key groups such as low- and middle-income groups, new urban residents, and young people at relatively low social costs, forming an overall favorable landscape where new housing is well managed, second-hand housing is active, and the high-end has a market, the mid-end has support, and the low-end has guarantees, building momentum for real estate market stability and high-quality development. [Suzhou: Raising Maximum Housing Provident Fund Loan Limits, with Individual Maximum Loan Amount Adjusted to 1.5 Million Yuan] Suzhou recently issued several measures to further promote stable and healthy development of the real estate market. Among them, it mentioned optimizing the criteria for determining the number of provident fund loans and housing units, with first-home provident fund loan policies applied when applicants have no outstanding provident fund loan balance nationwide. The maximum provident fund loan limits were raised, with the individual maximum loan amount adjusted to 1.5 million yuan and the family maximum loan amount adjusted to 2 million yuan. For purchases of newly built green residential buildings rated two-star or above, the provident fund loan amount can be increased by 20%; for purchases of newly built "dual-smart and fully-equipped" improved housing, the provident fund loan amount can be increased by 50%. For purchases of newly built commercial housing projects sold as completed properties, the provident fund loan amount can be increased by 50%. Provident fund loans can be applied for when purchasing completed property-right apartments. [Wuhan Announces New Property Market Policies, Expanding the Scope of Cross-City Housing Provident Fund Loans] On April 30, the Wuhan Housing and Urban Renewal Bureau, Wuhan Municipal Finance Bureau, and Wuhan Housing Provident Fund Management Center issued the Notice on Further Optimizing and Improving the City's Real Estate Policy Measures. The notice proposed that from May 1 to December 31, 2026, when resident families apply for commercial personal housing loans to purchase newly built commercial housing, if family members have no complete housing units in the district where the intended new commercial housing is located, the purchase will be recognized as the family's first home. Employees contributing to provident funds in cities nationwide who purchase self-owned housing in Wuhan or have outstanding commercial housing loans may apply for housing provident fund loans from the Wuhan Provident Fund Center, with the restriction requiring borrowers (including spouses) to hold Wuhan household registration removed. [Zhanjiang Optimizes Property Market Policies: Housing Purchase Subsidies and Provident Fund Loan Limits Increased] According to the Zhanjiang Municipal Housing and Urban-Rural Development Bureau, to adapt to the new situation in the real estate market, Zhanjiang introduced the "Zhanjiang Seven Measures" policy aimed at promoting housing absorption and optimizing supply. The policies include raising housing provident fund loan limits, with the maximum loan amount for homebuyers reaching 1.2 million yuan, and military families eligible for an additional 200,000 yuan in loans; implementing housing purchase subsidies, with buyers eligible for subsidies of up to 20,000 yuan. The policies also cover reducing real estate enterprises' operating costs, optimizing residential design, streamlining approval processes, and supporting the sound development of the real estate industry and urban construction. The policies take effect immediately and are valid for three years. [Tianjin Optimizes Real Estate Supply to Promote Housing Consumption] Tianjin issued a notice on optimizing the city's real estate supply to promote housing consumption. It mentioned using special bond funds to reclaim and repurchase existing idle land. Enterprises are supported in advancing the continued development of real estate projects through reasonable optimization of design requirements and other means. Business entities that repurchase existing commercial housing for use as rental housing may enjoy preferential tax policies related to housing rental if they meet the conditions. For cases where existing commercial housing is certified as being converted into allocation-based affordable rental housing, the land use nature will not be changed within the original land use period, no supplementary land price will be required, and preferential pricing policies for water, electricity, gas, and heating will be enjoyed in accordance with national and municipal regulations. The national tax policy supporting residents' housing replacement purchases is implemented. From January 1, 2026 to December 31, 2027, taxpayers who sell self-owned housing within Tianjin and repurchase housing in Tianjin within one year after the sale of their current housing will be eligible for a refund of the individual income tax already paid on the sale of their current housing. [Shenzhen Municipal Housing and Construction Bureau Issues Notice on Further Optimizing and Adjusting the City's Real Estate-Related Policies] On April 29, the Shenzhen Municipal Housing and Construction Bureau issued a notice to further optimize real estate regulatory policies. Regarding purchase restrictions, eligible resident families may purchase one additional housing unit within the areas of Futian, Nanshan, and Xin'an Sub-district in Bao'an; non-Shenzhen-registered families holding valid residence permits may also purchase one unit in the above areas. Regarding provident funds, the maximum family loan amount was raised to 1.3 million yuan, with first-home buyers and multi-child families eligible for a maximum increase of 70%. The new policy takes effect from May 29. [Zhuhai Municipal Housing and Urban-Rural Development Bureau and Five Other Departments Optimize and Adjust the City's Real Estate Policy Measures] The Zhuhai Municipal Housing and Urban-Rural Development Bureau and five other departments issued a notice on optimizing and adjusting the city's real estate policy measures. The notice proposed optimizing housing provident fund loan policies. First, raising housing provident fund loan limits. For those eligible for provident fund loans, the maximum housing provident fund personal housing loan amounts for single- and dual-contributor employee families were adjusted from 800,000 yuan to 1 million yuan and from 1.3 million yuan to 1.5 million yuan, respectively. Second, expanding the scope of housing purchase support for multi-child families. When multi-child families apply for provident fund loans to purchase a second self-occupied housing unit, the loan amount may be increased by 20% above the eligible loan amount, but shall not exceed the city's maximum provident fund loan limit. Third, raising the loan amount increase ratio for purchasing green buildings. When contributing employees purchase commercial housing that meets the national two-star green building standard or commercial housing in certified prefabricated building projects, the loan amount may be increased by 20% above the eligible loan amount, but shall not exceed the city's maximum provident fund loan limit; for purchases of commercial housing meeting the national three-star green building standard, the loan amount may be increased by 30% above the eligible loan amount, but shall not exceed the city's maximum provident fund loan limit. [Foshan Launches Commercial Housing "Trade-in" Program! First Batch Involves 22 Projects] Recently, the Notice of the Foshan Municipal Housing and Urban-Rural Development Bureau on Organizing the First Batch of Commercial Housing "Trade-in" Program was officially released. This is not a simple encouragement document; it is a solution that systematically unblocks replacement bottlenecks through model innovation and a policy package. It promotes the real estate market's transition from "one-sided transactions" to a "virtuous cycle between existing and incremental housing," achieving multi-party wins for residents, enterprises, and the market. The innovation of Foshan's trade-in policy lies in introducing multiple real estate enterprises to participate jointly: Foshan Anju, Chancheng Anju, Nanhai Youju, Shunde Chengtie, Gaoming Airport Construction, and Sanshui Anju serve as repurchasing entities; Foshan Chengfa, Foshan Urban Renewal, Foshan Lianzhi, Heyue Yaji, Shunkong Chengtou, Yongdeli Commerce, Sanshui Chanfa, and Miaohui Real Estate provide new housing sources. This model determines old housing value through negotiation and sets a "contract termination protection period" to avoid blindly pushing for lower prices, thereby completing the "sell old, buy new" closed loop and serving as a market stabilizer. Voices from Various Parties BOC International Securities believes the real estate industry is at an important window where fundamentals and market expectations are resonating in recovery. Current policies continue to exert force, with first-tier cities optimizing purchase and loan restrictions and core cities optimizing provident fund policies, all of which have had a certain effect on releasing genuine housing demand, with some first-tier city property markets seeing a sustained two-month recovery. In the short term, the window of resonance between policy and high-frequency transaction improvement remains, and it is necessary to track whether the subsequent transaction recovery trend can continue, which will depend on inventory destocking progress and whether prices stabilize. From an investment perspective, most real estate enterprises made relatively large impairment provisions in 2025, and may consolidate at lows in 2026, so sector profit margins and performance may rebound in 2027, potentially leading to improved market valuations for 27E in Q4 this year. In addition, some commercial property holding companies have already positioned themselves ahead in new business formats, new models, and new scenarios, and are better positioned to seize opportunities in the new consumption era. A China Post Securities research report shows that in the phase where policy and high-frequency transactions are "resonating but not fully," the industry's β remains constrained by the verification progress of "destocking and price stabilization." The pattern of second-hand housing recovering first while new housing lags continues, and capital in the secondary market continues to favor assets with α characteristics (those deeply rooted in core cities, with precise land acquisition, and strong product and operational capabilities). Although there is policy support and improvement in the second-hand housing chain in core cities, land and new construction starts remain weak, and fluctuations in net financing suggest that industry clearing has not concluded, and β rallies remain susceptible to data disturbances. Against this backdrop, China Post Securities recommends focusing on China Resources Land, China Overseas Land & Investment, China Jinmao, Poly Property and China Merchants Shekou. Huayuan Securities' research report believes that in 2026, three major trends are worth anticipating: 1) The real estate adjustment is expected to near its end: reviewing real estate crises in major global economies, the average decline was 35% with an average adjustment period of 6 years, and the length and depth of China's actual housing price adjustment have already been relatively sufficient. 2) Structural opportunities in "good housing": China's real estate market has entered a phase of structural differentiation, with the central government frequently mentioning the construction of good housing. Under the catalyst of policy orientation and changes in supply-demand structure, high-grade residential properties may usher in a development wave. 3) Hong Kong property market recovery continues: driven by multiple favorable factors, market sentiment in Hong Kong's private residential market has gradually recovered, and they believe Hong Kong-based developers are expected to see a new round of value re-rating. They maintain a "bullish" rating on real estate. A CITIC Securities research report stated that in April, the floor space of commercial buildings sold nationwide fell 9.5% YoY, with the decline widening 2.1 percentage points from March; sales revenue fell 7.6% YoY, with the decline narrowing 5.7 percentage points from March. New and second-hand housing prices continued to adjust. In April, the MoM decline in the price indices of newly built commercial residential housing and second-hand residential housing across 70 large and medium-sized cities nationwide remained flat MoM. Second-hand housing prices in first-tier cities all rose, with second-hand residential prices in Shanghai, Beijing, Shenzhen, and Guangzhou up 0.7%, 0.4%, 0.3%, and 0.2% MoM, respectively. First-tier city property markets continued to recover, and the real estate market is gradually stopping its decline and stabilizing. They are bullish on Hong Kong, commercial properties, and quality enterprises focused on core city tracks.

SMM News, May 28: Recently, multiple regions across China released policies to promote the stable and healthy development of the real estate market. Provinces and cities including Guangzhou, Shenzhen, Xiamen, Hunan, and Suzhou successively optimized property market regulation details, including measures such as relaxing provident fund loan conditions, raising loan limits, advancing state-owned enterprise acquisition of existing second-hand housing, and implementing housing "trade-in" policies, which are expected to gradually activate housing replacement demand and revitalize existing housing stock. As policy effects gradually materialized, transaction activity in core cities such as Beijing, Shanghai, Guangzhou, and Shenzhen recovered, real estate enterprises' financing environment showed marginal improvement, and industry fundamentals saw slight repair. Boosted by both policies and fundamentals, coupled with some capital reallocation, the real estate sector posted a counter-trend rally. As of the market close on May 28, the real estate development sector rose 0.99%, and real estate services rose 1.39%. In terms of individual stocks: Beichen Property, Tianjian Group, Xiangjiang Holdings, Vantone Development and other stocks hit the daily limit, while Xinhuangpu, Jintou Chengkai, Black Peony, Yue Hong Yuan A, and Worldunion all ranked among the top gainers. News [The Political Bureau of the CPC Central Committee Held a Meeting to Analyze and Study the Current Economic Situation and Economic Work] The Political Bureau of the CPC Central Committee held a meeting on April 28 to analyze and study the current economic situation and economic work. Xi Jinping, General Secretary of the CPC Central Committee, presided over the meeting. The meeting noted that since the beginning of this year, the CPC Central Committee with Comrade Xi Jinping at its core has strengthened overall leadership over economic work, taking a holistic and forward-looking approach. All regions and departments have acted proactively and adopted comprehensive measures. China's economy got off to a strong start, with major indicators performing better than expectations, demonstrating strong resilience and vitality. At the same time, there are some difficulties and challenges, and the foundation for sustained and steady economic improvement needs to be further consolidated. Confidence should be strengthened, and economic work should be pursued with greater intensity and more practical measures. The meeting pointed out the need to effectively prevent and defuse risks in key areas. Efforts should be made to stabilize the real estate market and solidly advance urban renewal. Local government debt risks should be resolved in an orderly manner, with a focus on addressing the issue of overdue payments to enterprises. Reform of small and medium-sized financial institutions should be promoted, and confidence in the capital market should be stabilized and strengthened. [Huang Guanglie, Deputy Secretary General of Guangzhou Municipal Government: Confident in Further Consolidating the Stabilizing and Improving Trend of Guangzhou's Property Market] On May 26, Guangzhou held a press conference on the series of supporting documents for the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market." Huang Guanglie, Deputy Secretary General of Guangzhou Municipal Government, stated that going forward, Guangzhou will continue to improve the two major systems of the housing market and housing security, and continuously optimize property market regulation measures. Departments including the Municipal Bureau of Planning and Natural Resources, the Municipal Bureau of Housing and Urban-Rural Development, and the Municipal Provident Fund Center have issued supporting rules on matters such as land supply, special subsidies for "sell-old-buy-new," and "commercial-to-provident fund loan conversion." Huadu District responded swiftly by launching the "Huadu Eight Measures" as specific initiatives. State-owned enterprises represented by Guangzhou Anju Group are accelerating the launch of pilot work on second-hand housing acquisition and revitalization. We believe that as these detailed rules are fully implemented and various sectors advance in coordination, we are confident in further consolidating the stabilizing and improving trend of Guangzhou's property market. (Jin10 Data APP) [Guangzhou's Real Estate Market Activity Has Been Continuously Rising Since May] On May 26, Guangzhou held a press conference on the series of supporting documents for the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market." Huang Guanglie, Deputy Secretary General of the Guangzhou Municipal Government, introduced that on April 30, Guangzhou issued the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market" (known as the "Sui Eight Measures"). As the policy effects continued to release, market activity has been continuously rising. Since May, weekly visits, subscriptions, and online signings at key new residential projects citywide increased by 26.9%, 36.9%, and 11.4% WoW respectively; weekly signing volume of second-hand residential properties rose 9.3% WoW, while new listing volume decreased 16.7% YoY. The new housing provident fund policy has taken effect, with 4,484 loan applications accepted totaling 4.746 billion yuan, up 47.05% and 56.43% YoY respectively. [Guangzhou: Removes Restrictions on "Only Housing in the City" and Number of Provident Fund Loan Uses] On May 26, 2026, the Guangzhou Housing Provident Fund Management Center issued the normative document "Implementation Measures for Converting Commercial Personal Housing Loans to Housing Provident Fund Personal Housing Loans in Guangzhou (Provisional)." It proposed expanding the scope of commercial loan banks by removing the restriction that "the original commercial loan bank must be a housing provident fund entrusted bank," allowing commercial loans from non-housing provident fund handling banks to be converted to pure housing provident fund loans. It relaxed requirements on loan types, terms, and provident fund contribution duration. For commercial-to-provident-fund conversion business handled by housing provident fund loan handling banks, applicants whose convertible loan amount is not enough to fully repay the original commercial loan principal and interest may choose to convert to a combination loan. The requirement for account opening and cumulative housing provident fund contribution duration was reduced from "60 months" to "36 months." The original commercial loan disbursement period was shortened from "more than 3 years" to "more than 2 years." The restrictions on "only housing in the city" and the number of provident fund loan uses were removed, no longer requiring that "the loan property is the applicant's family's only housing in the city," supporting applications for first and second improved housing. Applicants who "have never used or have only used housing provident fund loans once" may also apply for commercial-to-provident-fund conversion, no longer subject to the restriction of "never having used housing provident fund loans." (Jin10 Data) [Xiong'an New Area: Maximum Housing Provident Fund Loan Amount Raised to 800,000 Yuan] Notice from the Xiong'an New Area Housing Management Center on Optimizing and Adjusting Housing Provident Fund Withdrawal and Loan Policies. The policy stated that for depositors meeting the rental housing withdrawal conditions in the New Area who have not registered their housing lease contracts, the maximum annual withdrawal amount was raised to 17,000 yuan; for those who have registered their housing lease contracts on the "Hebei Xiong'an New Area Housing Rental Information Service Platform," the maximum annual withdrawal amount was raised to 25,000 yuan. For depositors purchasing owner-occupied housing in the New Area and applying for housing provident fund loans, the maximum loan amount was raised to 800,000 yuan. For employees of entities relocated from Beijing whose housing provident fund contributions are deposited in the New Area, the maximum loan amount for purchasing owner-occupied housing in the New Area was raised to 1.2 million yuan. For families with two or more children purchasing owner-occupied housing in the New Area and applying for housing provident fund loans, the maximum loan amount was increased by an additional 200,000 yuan. For employee households with only one housing provident fund loan record nationwide that has been fully repaid and who have no property in the New Area, the first-home housing provident fund loan policy shall apply. (Xiong'an Provident Fund) [Supreme Court's Liu Guixiang: Preventing and Mitigating Risks in Key Areas Such as Finance and Real Estate] On May 27, Liu Guixiang, Vice-Ministerial-Level Full-Time Member of the Adjudication Committee and Second-Grade Grand Justice of the Supreme People's Court, stated at a press conference held by the State Council Information Office that the people's courts would fully safeguard national security and social stability, lawfully punish criminal acts that endanger national security and public safety and undermine the socialist market economic order, and adhere to the principles of marketization and rule of law, coordinating the functions of administrative, civil, and criminal adjudication to prevent and mitigate risks in key areas such as finance and real estate. [China Index Academy: Property Developer Bond Financing up Nearly 30% YoY in April] The latest data released by the China Index Academy showed that in April, total bond financing in the real estate sector reached 61.48 billion yuan, up 28.8% YoY and up 18.5% MoM. Specifically, credit bond financing in the real estate sector totaled 37.48 billion yuan (up 2.6% YoY, down 9.1% MoM), accounting for 61%; ex-China bond financing was 3.43 billion yuan, accounting for 5.6%; ABS financing was 20.57 billion yuan (up 83.9% YoY, up 93.1% MoM), accounting for 33.5%. [Marco Polo: Q2 Sales Improved QoQ] Marco Polo stated at a recent earnings briefing that in Q1 2026, due to the late Chinese New Year holiday and a slow market start, the industry experienced a certain degree of YoY decline overall. Since Q2, the real estate market in some cities has shown structural stabilization and recovery, with the new housing market broadly stopping its decline. Core cities such as Guangzhou, Shenzhen, and Hangzhou saw second-hand housing prices begin to rise, with active transactions. The company improved its Q2 sales on a QoQ basis through various measures, including building regional empowerment centers, promoting the expansion of its dealer network into lower-tier markets, developing non-residential engineering projects, and strengthening cooperation with whole-house decoration enterprises. [Guangzhou Anju Group to Launch Pilot Work Supporting Residents in "Selling Old and Buying New"] On May 26, Guangzhou held a press conference on the supporting documents for the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market." Qian Zhe, Deputy Secretary of the Party Committee and General Manager of Guangzhou Anju Group, stated that to support residents in improving their housing conditions and facilitate the exchange chain between pre-owned and new housing, Anju Group will immediately launch pilot work supporting residents in "selling old and buying new," with a trial period ending on December 31, 2026. Following the principle of "government guidance, market-based operation, and voluntary participation," the group will acquire pre-owned residential properties through market-oriented approaches. The pilot acquisition targets pre-owned residential properties within Guangzhou's Ring Expressway, with a total price of no more than 3 million yuan, a floor area of less than 70 m², and no restriction on building age. The acquired properties will be prioritized for use as affordable housing, talent apartments, and other purposes, primarily serving the housing needs of new urban residents, young people, and other groups, as well as resident relocation for urban self-renewal projects. [Guangzhou Huadu District Sees "Rising Volume, Stable Prices, and Active Transactions" After New Policy Implementation] On May 26, Guangzhou held a press conference on the supporting documents for the "Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market." Mai Shaoming, Deputy District Head of Huadu District, stated that after the implementation of the "Eight Measures for Guangzhou," Huadu District took the lead in the city by introducing the "Eight Measures for Huadu." Since the new policy took effect, the real estate market in Huadu District has seen a continued rebound in market activity and a steady release of transaction vitality. Project visits, subscriptions, policy inquiries, and pre-owned housing transactions all surged significantly. Policy inquiries focused on core topics such as pre-sale school enrollment eligibility, online contract registration for school enrollment, and trade-in subsidies. The market overall demonstrated a positive trend of "rising volume, stable prices, and active transactions." [Xiamen Introduces Six Housing Provident Fund Measures: "Sell Old, Buy New" Loans to Be Executed at First-Home Interest Rates] On May 19, the Xiamen Housing Provident Fund Center announced on its website that, in order to implement the spirit of the "Several Opinions on Further Promoting the Stable Development of the Real Estate Market" issued by the Fujian Provincial Department of Housing and Urban-Rural Development, and in light of Xiamen's actual conditions, the city introduced six housing provident fund measures upon approval by the Xiamen Housing Provident Fund Management Committee. Among them, it was proposed that "sell old, buy new" loans be executed at first-home interest rates. Depositors who sell their own residential properties within Fujian Province and purchase a second self-occupied residential property in Xiamen within 12 months and apply for a housing provident fund loan shall, if they meet the provident fund loan conditions, be subject to the first-home housing provident fund loan interest rate. Housing provident fund loans for multi-child families are executed at first-home loan interest rates. For multi-child families purchasing a second owner-occupied home in the city and applying for housing provident fund loans, those meeting the provident fund loan conditions will have loans executed at first-home housing provident fund loan interest rates. [Hunan Issued Policies Supporting Acquisition of Existing Commercial Housing and Housing "Trade-in"] On May 13, the Hunan Provincial Department of Housing and Urban-Rural Development, together with the Provincial Development and Reform Commission, the Provincial Department of Finance, and six other departments, issued the "Several Measures of Hunan Province to Further Promote Stable and Healthy Development of the Real Estate Market." This "New Xiang Ten Measures" is an optimization and upgrade based on the 2025 "Several Measures of Hunan Province to Promote Stable and Healthy Development of the Real Estate Market," focusing on formulating relevant support measures in areas such as acquisition of existing commercial housing, housing "trade-in," "quality housing" construction, "three-in-one" housing projects, and optimization of provident fund policies. The "New Xiang Ten Measures" specified that for loans applied for purchasing newly-built commercial housing within the province (including housing provident fund loans and commercial loans), housing unit counts are determined at the county/city/district (park) level, and for those already owning housing in the county/city/district (park) where the intended purchase is located, one housing unit is deducted from the count; the minimum down payment ratio of 30% for commercial property loans is implemented. [Hunan: College Graduates and High-level Talents Staying in or Coming to Hunan for Employment and Entrepreneurship Can Apply for Loans After 1 Month of Provident Fund Contributions] On May 13, the Hunan Provincial Department of Housing and Urban-Rural Development and eight other departments issued the "Several Measures of Hunan Province to Further Promote Stable and Healthy Development of the Real Estate Market." The "New Xiang Ten Measures" proposed that for college graduates, young talents, and high-level talents staying in or coming to Hunan who apply for housing provident fund loans for their first home purchase within the province, they can apply after only 1 month of contributions, with maximum preferential down payment ratios, and the maximum loan amount may not be linked to account balances but reasonably determined based on work compensation base and labor (employment) contract duration. Among them, the maximum housing provident fund loan amount for high-level talents can be relaxed to 4 times the standard, and for college graduates and young talents staying in or coming to Hunan for employment and entrepreneurship, it can be relaxed to 2 times. For first-marriage and first-birth families and families with two or more children using housing provident fund loans to purchase newly-built commercial housing, the loan amount cap is further increased by more than 30%. The age limit for housing provident fund personal loans is extended, with a maximum increase of 5 years beyond the statutory retirement age. [A Residential Land Parcel in Nanchang Sold at 12.5% Premium] On May 8, Nanchang sold a residential land parcel with a transfer area of 12.1409 mu and a planned building area of 9,712.72 sqm, with a floor area ratio of 1.1. The starting land price was 4 million yuan/mu, totaling a starting price of 48.56 million yuan, with a starting floor price of 5,000 yuan/sqm. Yingtan Wanjing Real Estate Development Co., Ltd. ultimately won the land parcel at a land price of 4.5 million yuan/mu, equivalent to a total price of 54.63 million yuan, with a transaction floor price of 5,625 yuan/㎡ and a premium rate of 12.5%. [Beijing Real Estate Market Activity Climbs, Pre-owned Home Trading Volume Hits Nearly 5-Year High] During this year's Labour Day holiday, as new real estate policies were intensively implemented in multiple cities, real estate market activity climbed. In Beijing, the pre-owned housing market continued the momentum since April, with trading volume and showing volume rising steadily. The latest data showed that during the first four days of the Labour Day holiday, the number of pre-owned home transactions in Beijing surged 72% YoY, indicating strong market performance. In April, which just passed, Beijing's pre-owned home trading volume reached nearly 18,000 units, hitting the highest level for the same period in nearly 5 years. [Guangzhou Labour Day Holiday New Residential Subscription Volume Up Over 50% YoY] On May 6, it was learned from the Guangzhou Municipal Housing and Urban-Rural Development Bureau that during the Labour Day holiday, Guangzhou's real estate market activity rebounded significantly, with both new and pre-owned residential markets improving in tandem and a clear recovery trend in the property market. Data showed that from May 1 to 5, the new residential market in Guangzhou heated up significantly, with a citywide daily average of 8,692 visitor groups to new residential projects (up 30.8% YoY), and a daily average subscription volume of 634 units (up 50.1% YoY). The pre-owned residential market maintained steady growth. During the holiday, daily average showing visits and daily average subscription volume grew 15.6% and 5.2% respectively compared to April, while subscription volume was up 63.4% YoY. Meanwhile, new listing volume of pre-owned homes pulled back. A spokesperson from the Guangzhou Municipal Housing and Urban-Rural Development Bureau stated that on April 30, Guangzhou issued implementation opinions on further promoting stable and healthy development of the real estate market, proposing multiple measures covering areas such as optimizing housing provident fund usage and facilitating property swap chains. The policy dividends were quickly transmitted, with notable market feedback. [Guangdong Zhongshan: Pre-owned Housing Acquired by Developers Can Be Resold; Minimum Down Payment for Commercial Property Loans Set at 30%] The Housing and Urban-Rural Development Bureau of Zhongshan City, Guangdong Province, issued the "Several Measures for Continuously Promoting Stable and Healthy Development of the Real Estate Market in Zhongshan" to further implement the digestion of existing housing inventory and optimize incremental housing supply, better meeting residents' essential and upgrading housing needs. The "Several Measures" comprised 7 articles, including continuing to support residential housing trade-in policies; encouraging market-oriented operation of commodity housing trade-in programs; increasing housing provident fund support for home purchases; optimizing the criteria for determining the number of housing units under provident fund loans; accelerating destocking of commercial properties and encouraging multiple approaches to revitalize existing resources; increasing financial support and lowering the minimum down payment ratio for commercial property purchase loans; and piloting housing voucher-based resettlement compensation. Among them, the Several Measures stipulate that repurchased old housing can be resold, renovated and then sold, or used for market-oriented rental housing, talent apartments, affordable rental housing, etc. The minimum down payment ratio for commercial property purchase loans was adjusted to no less than 30%. [ China Real Estate News: Stabilizing the Property Market Requires Good "Forward Planning" ] On May 4, China Real Estate News published an editorial stating that amid complex and volatile internal and external shocks, the property market's performance since the beginning of this year was hard-won, and will lay a solid foundation and inject firm confidence for efforts to stabilize the real estate market. Therefore, the upcoming months of May and June are crucial, and localities should continue to do good "forward planning." The more detailed and thorough the forward planning work for stabilizing the real estate market, the more solid the foundation for market stability. The stability and vitality of the property market should be reflected in the transformation of "good housing" toward higher quality, and the innovation momentum of "good housing" should be further released and continuously expanded. The stability and vitality of the property market should also be reflected in the overall satisfaction of demand, and the housing replacement cycle should be further facilitated. The core value of the housing trade-in policy is precisely to break this deadlock through institutional innovation. Localities should focus on building bridges between old housing disposal and new housing purchase through government guidance, state-owned enterprise participation, and market-based operations, both facilitating the replacement process and reassuring homebuyers about price stability. Meanwhile, financial support will be increased for converting existing commercial housing into affordable housing, resettlement housing, dormitories, and talent housing. This will both provide stable absorption channels for inventory to accelerate market clearing, and effectively broaden the supply sources of affordable housing, shorten the construction preparation cycle, and solve the housing difficulties of key groups such as low- and middle-income groups, new urban residents, and young people at relatively low social costs, forming an overall favorable pattern where new housing is well managed, second-hand housing is active, and the high-end has a market, the mid-end has support, and the low-end has guarantees, building momentum for the stability and high-quality development of the real estate market. [ Suzhou: Raising Maximum Housing Provident Fund Loan Limits, with Individual Maximum Loan Amount Adjusted to 1.5 Million Yuan ] Suzhou recently issued several measures to further promote the stable and healthy development of the real estate market. Among them, it mentioned optimizing the criteria for determining the number of provident fund loans and housing units. If the applicant has no outstanding provident fund loan balance nationwide at the time of application, the first-home provident fund loan policy applies. The maximum provident fund loan limits were raised, with the individual maximum loan amount adjusted to 1.5 million yuan and the family maximum loan amount adjusted to 2 million yuan. For purchases of newly built green residential buildings rated two-star or above, the provident fund loan amount can be increased by 20%. For purchases of newly built improved-type housing with "two-smart-one-complete" features, the provident fund loan amount can be increased by 50%. For purchases of newly built commercial housing projects sold as completed properties, the provident fund loan amount can be increased by 50%. Provident fund loans can be applied for when purchasing completed property-right apartments sold as existing homes. [ Wuhan Announces New Property Market Policies, Expanding the Scope of Cross-Regional Housing Provident Fund Loans ] On April 30, the Wuhan Housing and Urban Renewal Bureau, the Wuhan Finance Bureau, and the Wuhan Housing Provident Fund Management Center issued the Notice on Further Optimizing and Improving Real Estate Policy Measures in the City. The notice proposed that from May 1 to December 31, 2026, when a resident family applies for a commercial personal housing loan to purchase newly built commercial housing, if no family member owns a complete housing unit in the district where the intended new commercial housing is located, it shall be recognized as the family's first home. Employees contributing to provident funds in cities nationwide who purchase their own housing in Wuhan or have outstanding commercial housing loans may apply for housing provident fund loans from the Wuhan Provident Fund Center, with the restriction requiring the borrower (including spouse) to hold Wuhan household registration being removed. [ Zhanjiang Optimizes Property Market Policies: Housing Purchase Subsidies and Provident Fund Loan Limits Increased ] According to the Zhanjiang Housing and Urban-Rural Development Bureau, to adapt to the new situation in the real estate market, Zhanjiang introduced the "Zhanjiang Seven Measures" policy aimed at promoting housing absorption and optimizing supply. The policy includes raising housing provident fund loan limits, with homebuyers eligible for a maximum loan of 1.2 million yuan, and military families eligible for an additional 200,000 yuan in loans. A housing purchase subsidy was implemented, with buyers eligible for a maximum subsidy of 20,000 yuan. The policy also covers reducing operating costs for real estate enterprises, optimizing residential design, streamlining approval processes, and supporting the healthy development of the real estate industry and urban construction. The policy took effect immediately and is valid for three years. [ Tianjin Optimizes Real Estate Supply to Promote Housing Consumption ] Tianjin issued a notice on optimizing the city's real estate supply to promote housing consumption. It mentioned making good use of special bond funds to reclaim and repurchase existing idle land. Enterprises are supported in advancing the continued development of real estate projects through reasonable optimization of design requirements and other means. Business entities that repurchase existing commercial housing for use as rental housing may enjoy preferential tax policies related to housing rental if they meet the conditions. For cases where existing commercial housing is certified as being converted into allocation-based affordable rental housing, the land use nature will not be changed within the original land use period, no supplementary land price payments will be required, and preferential pricing policies for water, electricity, gas, and heating will be enjoyed in accordance with relevant national and municipal regulations. The national tax policy supporting residents' housing replacement purchases was implemented. From January 1, 2026 to December 31, 2027, taxpayers who sell their own housing within Tianjin and repurchase housing in Tianjin within one year after the sale of their current housing will be eligible for a refund of the individual income tax already paid on the sale of their current housing. [ Shenzhen Housing and Construction Bureau Issues Notice on Further Optimizing and Adjusting Real Estate Policies ] On April 29, the Shenzhen Housing and Construction Bureau issued a notice to further optimize real estate regulatory policies. Regarding purchase restrictions, eligible resident families may purchase one additional housing unit within Futian, Nanshan, and Xin'an Sub-district of Bao'an. Non-Shenzhen-registered families holding valid residence permits may also purchase one unit in the above areas. Regarding provident fund, the maximum family loan amount was raised to 1.3 million yuan, and first-home buyers and multi-child families may enjoy a maximum increase ratio of 70%. The new policy takes effect from May 28. [ Six Departments Including the Zhuhai Housing and Urban-Rural Development Bureau Optimize and Adjust the City's Real Estate Policy Measures ] Six departments including the Zhuhai Housing and Urban-Rural Development Bureau issued a notice on optimizing and adjusting the city's real estate policy measures. The notice proposed optimizing housing provident fund loan policies. First, raising housing provident fund loan limits. For those eligible for provident fund loans, the maximum housing provident fund personal housing loan amounts for single- and dual-contributor employee families were adjusted from 800,000 yuan to 1 million yuan and from 1.3 million yuan to 1.5 million yuan, respectively. Second, expanding the scope of home purchase support for multi-child families. When multi-child families apply for provident fund loans to purchase a second self-occupied housing unit, the loan amount may be increased by 20% above the eligible loan amount, but shall not exceed the city's maximum provident fund loan limit. Third, raising the increase ratio for loans for purchasing green buildings. When contributing employees purchase commercial housing that meets the national two-star green building standard or commercial housing in projects certified as prefabricated construction, the loan amount may be increased by 20% above the eligible loan amount, but shall not exceed the city's maximum provident fund loan limit. For purchases of commercial housing that meets the national three-star green building standard, the loan amount may be increased by 30% above the eligible loan amount, but shall not exceed the city's maximum provident fund loan limit. [ Foshan Launches Commercial Housing "Trade-in" Program! First Batch Involves 22 Projects ] Recently, the Notice of the Foshan Housing and Urban-Rural Development Bureau on Organizing the First Batch of Commercial Housing "Trade-in" Program was officially released. This is not a simple encouragement document; it is a solution that systematically unblocks replacement bottlenecks through model innovation and a policy package. It promotes the real estate market's transformation from "one-sided transactions" to a "virtuous cycle between existing and incremental housing," achieving a multi-party win for residents, enterprises, and the market. The innovation of Foshan's trade-in policy lies in introducing multiple real estate enterprises to participate jointly: Foshan Anju, Chancheng Anju, Nanhai Youju, Shunde Chengtie, Gaoming Airport Construction, and Sanshui Anju serve as the repurchasing entities, while Foshan Chengfa, Foshan Urban Renewal, Foshan Lianzhi, Heyue Yaji, Shunkong Chengtou, Yongdeli Trading, Sanshui Chanfa, and Miaohui Real Estate and other developers provide new housing sources. This model determines old housing value through negotiation, sets a "contract termination protection period" to avoid blindly pushing for lower prices, thereby completing the "sell old, buy new" closed loop and serving as a market stabilizer. Voices from Various Parties BOC International Securities believes the real estate industry is at an important window where fundamentals and market expectations are resonating in recovery. Current policies continue to exert force, with first-tier cities optimizing purchase and loan restrictions and core cities optimizing provident fund policies, all of which have had a certain effect on releasing genuine home purchase demand, with some first-tier city property markets showing a sustained two-month recovery. In the short term, the window of policy and high-frequency transaction improvement resonance remains, and it is necessary to track whether the subsequent transaction recovery trend can continue, which will depend on inventory destocking progress and whether prices stabilize. From an investment perspective, most real estate enterprises made relatively large impairment provisions in 2025, and may consolidate at lows in 2026, so sector profit margins and performance may rebound in 2027, leading to improved market views on 27E valuations in Q4 this year. In addition, some commercial property holding companies have already positioned themselves ahead in new business formats, new models, and new scenarios, and are better positioned to seize opportunities in the new consumption era. A China Post Securities research report shows that in the phase where policy and high-frequency transactions are "resonating but not fully," the industry's β remains constrained by the verification progress of "destocking and price stabilization." The pattern of second-hand housing recovering first while new housing lags continues, and capital in the secondary market continues to favor assets with α characteristics (those deeply rooted in core cities, with precise land acquisition, and strong product and operational capabilities). Although there is policy support and improvement in the second-hand housing chain in core cities, land and new construction starts remain weak, and fluctuations in net financing suggest that industry clearing has not concluded, and β rallies remain susceptible to data disturbances. Against this backdrop, China Post Securities recommends focusing on China Resources Land, China Overseas Land & Investment, China Jinmao, Poly Property and China Merchants Shekou. Huayuan Securities research report believes that in 2026, three major trends are worth looking forward to: 1) The real estate adjustment is expected to approach its end: reviewing real estate crises in major global economies, the average decline was 35% with an average adjustment period of 6 years, and the length and depth of China's actual housing price adjustment have already been relatively sufficient. 2) Structural opportunities in "good housing": China's real estate market has entered a phase of structural differentiation, with the central government frequently mentioning the construction of good housing. Under the catalyst of policy orientation and supply-demand structure changes, high-grade residential properties may usher in a wave of development. 3) Hong Kong property market recovery continues: driven by multiple favorable factors, market sentiment in Hong Kong's private residential market has gradually recovered, and it believes Hong Kong-based developers are expected to see a new round of value re-rating. It maintains a "bullish" rating on the real estate sector. A CITIC Securities research report stated that in April, the floor space of commercial buildings sold nationwide fell 9.5% YoY, with the decline widening 2.1 percentage points from March. Sales revenue fell 7.6% YoY, with the decline narrowing 5.7 percentage points from March. New and second-hand housing prices continued to adjust. In April, the MoM declines in the price indices of newly built commercial residential housing and second-hand residential housing across 70 major cities nationwide were flat MoM. Second-hand housing prices in first-tier cities all rose, with second-hand residential prices in Shanghai, Beijing, Shenzhen, and Guangzhou rising 0.7%, 0.4%, 0.3%, and

SMM News, May 26: Metals market: As of the midday close, domestic base metals mostly fell. SHFE copper dropped 0.3%. SHFE aluminum edged down. SHFE lead fell 0.15%, and SHFE zinc rose 0.52%. SHFE tin gained 1.37%. SHFE nickel declined 1.08%. In addition, the most-traded casting aluminum futures fell 0.26%, and the most-traded alumina futures rose 5.08%. The most-traded lithium carbonate futures dropped 1.83%. The most-traded silicon metal futures fell 0.52%. The most-traded polysilicon futures rose 0.53%. Ferrous metals mostly fell. Iron ore dropped 1.82%, rebar fell 1.99%, hot-rolled coil declined 1.81%, and stainless steel edged down 0.03%. Coking coal and coke: the most-traded coking coal contract rose 6.05%, and the most-traded coke contract gained 2.54%. Overseas base metals, as of 11:45, LME metals mostly rose. LME copper gained 0.26%. LME aluminum edged up. LME lead rose 0.1%. LME zinc climbed 0.75%. LME tin rose 1.3%. LME nickel fell 1.09%. Precious metals, as of 11:45, COMEX gold rose 0.46%, and COMEX silver gained 1.4%. Domestic precious metals: the most-traded SHFE gold contract edged up 0.07%, and the most-traded SHFE silver contract dipped 0.02%. In addition, as of the midday close, the most-traded platinum futures fell 0.44%, and the most-traded palladium futures dropped 0.52%. As of the midday close, the most-traded Europe containerized freight index contract rose 0.41%, closing at 2,931.5 points. As of 11:45 on May 26, midday futures performance (selected): Spot Prices and Fundamentals Copper: Today in Guangdong, #1 copper cathode spot prices against the front-month contract: high-quality copper was quoted at a premium of 160 yuan/mt, unchanged from the previous trading day; standard-quality copper was quoted at a premium of 80 yuan/mt, down 20 yuan/mt from the previous trading day; SX-EW copper was quoted at a premium of 10 yuan/mt, down 20 yuan/mt from the previous trading day. The average price of Guangdong #1 copper cathode was 105,010 yuan/mt, down 735 yuan/mt from the previous trading day, and the average price of SX-EW copper was 104,900 yuan/mt, down 745 yuan/mt from the previous trading day. Spot market: Guangdong inventory ended a four-consecutive-day increase and resumed declining today... Macro Front China: [MOFCOM: China will attract more multinational companies to locate R&D and high-end manufacturing operations in China] The State Council Information Office held a press conference on the 2026 Qingdao Summit of Multinational Corporation Leaders. Vice Minister of Commerce Yan Dong stated that China will optimize the investment structure and activate new momentum for foreign investment. The Ministry of Commerce issued and implemented the 2025 edition of the *Catalogue of Industries for Encouraging Foreign Investment*, with a net increase of 205 encouraged categories, focusing on areas such as advanced manufacturing, modern services, high-tech, and energy conservation and environmental protection, providing policy support for foreign-invested enterprises to expand into high-end and emerging fields. Going forward, more multinational companies will be attracted to place their R&D and high-end manufacturing operations in China, optimizing the structure of foreign investment in China and strengthening innovation momentum. [Huang Guanglie, Deputy Secretary General of Guangzhou Municipal Government: Confident in Further Consolidating the Stabilizing and Improving Trend of Guangzhou's Property Market] On May 26, Guangzhou held a press conference on the series of supporting documents for the *Implementation Opinions on Further Promoting the Stable and Healthy Development of the Real Estate Market*. Huang Guanglie, Deputy Secretary General of Guangzhou Municipal Government, stated that going forward, Guangzhou will continue to improve the two major systems of the housing market and housing security, and continuously optimize property market regulation measures. Departments including the Municipal Bureau of Planning and Natural Resources, the Municipal Bureau of Housing and Urban-Rural Development, and the Municipal Housing Provident Fund Center have issued supporting detailed rules on matters such as land supply, special subsidies for "selling old and buying new," and "commercial-to-provident fund loan conversion." Huadu District responded swiftly by launching the "Huadu Eight Measures" as specific initiatives. State-owned enterprises represented by Guangzhou Anju Group are accelerating the launch of pilot work on the acquisition and revitalization of second-hand housing. It is believed that as these detailed rules are fully implemented and all sectors work in coordination, we are confident in further consolidating the stabilizing and improving trend of Guangzhou's property market. (Jin10 Data APP) [Guangzhou: Removing Restrictions on "Only Housing in the City" and the Number of Provident Fund Loan Uses] On May 26, 2026, the Guangzhou Housing Provident Fund Management Center issued the normative document *Implementation Measures for Converting Commercial Personal Housing Loans to Housing Provident Fund Personal Housing Loans in Guangzhou (Provisional)*. It proposed expanding the scope of commercial loan banks, removing the restriction that "the original commercial loan bank must be a housing provident fund entrusted bank," and allowing commercial loans from non-housing provident fund handling banks to be converted into pure housing provident fund loans. Requirements on loan types, terms, and provident fund contribution periods were relaxed. For commercial-to-provident fund conversion handled by housing provident fund loan handling banks, applicants whose convertible provident fund loan amount is not enough to fully repay the principal and interest of the original commercial loan may choose to convert to a combined loan. The requirement for opening an account and accumulating housing provident fund contributions was reduced from "60 months" to "36 months." The original commercial loan disbursement period was shortened from "more than 3 years" to "more than 2 years." The restrictions on "only housing in the city" and the number of provident fund loan uses were removed, no longer requiring that "the mortgaged property is the applicant's family's only housing in the city," and supporting applications for first and second improved housing. Applicants who have "never used or have only used housing provident fund loans once" are also eligible for the commercial-to-provident fund loan conversion, and are no longer restricted by the "never used housing provident fund loans" requirement. (Jin10 Data) [Xiongan New Area: Maximum Housing Provident Fund Loan Raised to 800,000 Yuan] The Xiongan New Area Housing Management Center issued a notice on optimizing and adjusting housing provident fund withdrawal and loan policies. According to the notice, for contributing employees who meet the rental withdrawal conditions in the new area but have not filed their housing rental contracts, the maximum annual withdrawal amount has been raised to 17,000 yuan; for those who have filed their housing rental contracts via the "Hebei Xiongan New Area Housing Rental Information Service Platform," the maximum annual withdrawal amount has been raised to 25,000 yuan. For contributing employees who purchase self-occupied housing in the new area and apply for a housing provident fund loan, the maximum loan amount has been raised to 800,000 yuan. For employees of Beijing-relocated entities whose housing provident fund contributions are based in the new area and who purchase self-occupied housing in the new area, the maximum housing provident fund loan amount has been raised to 1.2 million yuan. For multi-child families with two or more children who purchase self-occupied housing in the new area and apply for a housing provident fund loan, the maximum loan amount is increased by 200,000 yuan. Employee families who have only one fully repaid housing provident fund loan record nationwide and own no property in the new area are eligible for the first-home housing provident fund loan policy. (Xiongan Provident Fund) [PBOC's Reverse Repo Operations Result in a Net Injection of 248.5 Billion Yuan on the Day] The PBOC conducted 249 billion yuan of 7-day reverse repo operations today. As 500 million yuan of 7-day reverse repos matured today, this resulted in a net injection of 248.5 billion yuan on the day. US dollar: As of 11:45, the US dollar index rose 0.07% to 99.05. US Secretary of State Rubio, who concluded his visit to India, today (May 26) commented to the media on the so-called "self-defensive strikes" carried out by US forces this morning across multiple locations in southern Iran, stating that the Strait of Hormuz "must remain open, no matter what." Rubio said, "The (Hormuz) Strait must be open; it will eventually open in some way; it must be open." He also stated that the agreement expected to be reached with Iran may still require "a few more days" of negotiations over wording. (CCTV International News) According to CME's "FedWatch": the probability that the US Fed will keep interest rates unchanged through June is 99.9%, with a 0.1% probability of a cumulative 25-basis-point rate cut. The probability that the US Fed will keep interest rates unchanged through July is 90.3%, with a 9.6% probability of a cumulative 25-basis-point rate hike and a 0.1% probability of a cumulative 25-basis-point rate cut. (Jin Shi Data) Other currencies: Bank of Japan Deputy Governor Himino Ryozo emphasized that timely policy adjustments were crucial for maintaining market participants' confidence amid the recent sell-off in Japanese government bonds. Himino Ryozo said on Tuesday: "Regarding monetary policy and long-term interest rates, we believe it is very important to adjust the degree of monetary easing at an appropriate pace in response to future economic, price, and financial conditions, thereby maintaining market confidence that inflation will be properly controlled." The remarks appeared to suggest that the BOJ was open to raising interest rates in the near term. Himino Ryozo and other officials, including BOJ Governor Ueda Kazuo, recently emphasized the need to maintain a responsible attitude toward financial markets, and the market widely expected the BOJ to raise interest rates at its meeting next month. Meanwhile, Japanese Prime Minister Takaichi Sanae last week subtly released signals that she hoped the BOJ would maintain policy stability, as she was trying to mitigate the economic impact of the Iran war. Himino Ryozo said: "The BOJ will strive to implement policy appropriately to maintain such market confidence and achieve the price stability target in a sustainable and stable manner." (Jin Shi Data) DBS Group Research FX strategist Philip Wee said the Reserve Bank of New Zealand was very likely to keep interest rates unchanged at its Wednesday meeting, but the overall stance would be hawkish. "The RBNZ may prioritize above-target inflation over weak GDP growth and high unemployment." Wee also said that a rate hike on Wednesday could not be ruled out, and therefore NZD/USD was expected to return to the upper half of this year's 0.5700–0.6100 trading range. (Jin Shi Data) Data: Data to be released today include the UK May CBI retail sales balance, US March FHFA House Price Index MoM, US March S&P/CS 20-City Composite Home Price Index YoY (non-seasonally adjusted), US May Conference Board Consumer Confidence Index, and US May Dallas Fed Business Activity Index. In addition, attention should also be paid to Xiaomi Group's earnings call. Crude oil: As of 11:45, oil prices in the two markets diverged, with WTI down 5.33% and Brent up 1.62%. The notable divergence between the two reflected a high degree of uncertainty in the market's assessment of the situation. (Wallstreetcn) US Central Command said the US and Israel struck multiple Iranian vessels in the Strait of Hormuz, hours after Trump said negotiations with Tehran on an interim deal were making progress. The renewed fighting underscores the fragility of the US-Iran ceasefire agreement. The market is closely watching strikes that could derail negotiations. (Jin10 Data) According to Al Arabiya, a draft US-Iran agreement has been reached. The draft allows free passage through the Strait of Hormuz and the clearing of mines; navigation through the Strait of Hormuz must be restored within 30 days. The agreement stipulates that the US commits to easing the blockade on Iranian ports; the agreement allows Iran to sell and export oil; the agreement will provide specific sanctions exemptions for Iranian oil exports, and will consider easing sanctions on Iranian oil in phases, depending on Iran's implementation of its commitments. The agreement provides for continued nuclear negotiations to reach a long-term consensus. Spot Market Overview: ► ► ► ► ► ► ► ► ► ► ►

According to PBoC data, at the end of April, the balance of broad money (M2) stood at 353.04 trillion yuan, up 8.6% YoY. The balance of narrow money (M1) was 114.58 trillion yuan, up 5% YoY. The balance of currency in circulation (M0) was 14.75 trillion yuan, up 12.2% YoY. Net cash injection in the first four months totaled 653 billion yuan.