CITIC Securities: Shanghai releases a combination of real estate policies, improving both fundamentals and policy expectations.

CITIC Securities Research Report stated that on February 25th, Shanghai introduced new real estate policies, focusing on eliminating restrictive measures. The new policies in Shanghai significantly reduce the threshold for non-Shanghai residents to purchase property within the outer ring road, while also increasing the amount of loans available through the housing provident fund. On one hand, this expands the group of buyers within the outer ring road, and on the other hand, it reduces the cost of mortgages. In addition to the previous measures of Shanghai's three districts collecting and storing second-hand houses, this combination of policies is favorable for both fundamentals and expectations. The expected improvements will bring positive effects, and the subsequent stability of expectations and investment policies are worth looking forward to. Since the beginning of this year, the volume and prices of second-hand houses in core cities have shown some improvement, with Shanghai's listing price index rising for 5 consecutive weeks. This new real estate policy is expected to consolidate the stable situation in Shanghai.