Huatai Securities: Market diverges on real estate stocks. We recommend paying attention to real estate companies with abundant resources in core cities.

Huatai Securities' research report stated that on October 31, the holding data of the real estate sector as of the end of the third quarter in 2025 was announced. The Shanghai and Shenzhen real estate index steadily rose in the third quarter, with the market value of public funds holding real estate stocks increasing. However, the holding ratio continued to decline, and the proportion of holdings of real estate stocks by Northbound funds also decreased, indicating further clearing of chips. The current market is still stabilizing, and it is more favorable to the recovery pace of core cities represented by first-tier cities. It continues to recommend "good credit, good city, good products" real estate stocks, as well as top property management companies with stable dividends and performance.