Huatai Securities: Multiple factors will drive core city real estate markets to enter the channel of structural repair first.

Huatai Securities research report states that China's real estate market is entering a new phase, with the industry shifting from the past "credit-driven" model to a "industry-driven" model. Real estate's role in the economy is changing from being the engine of the "old cycle" to becoming a result of the "new cycle" of economic development. The development of emerging industries may determine the pace and quality of recovery in the future real estate market of cities. Huatai Securities believes that the wealth effects, population influx, and improvement in real estate inventory brought by emerging industries will lead core city housing markets to be the first to enter a phase of structural repair. Huatai Securities believes that there may be a particularly clear improvement in demand for upgrading and ultimate improvement in these cities, benefiting real estate enterprises with significant presence and quality in these cities.