The Zhitong Finance App learned that Yamato released a research report saying that sales contraction in the Chinese real estate market increased in October, with contract sales of the top 100 developers falling 22% and 17% year on year respectively, further deteriorating from the 8% and 14% year-on-year declines in September, but remained roughly flat (flat and 1% increase). The bank maintains a neutral view on the short-term stock price performance of the industry and continues to prefer leading state-owned enterprises, preferring China Resources Land (01109) and China Overseas Development (00688), all of which have given a “buy” rating.

According to the data, the cumulative contract sales of the top 100 developers in the first ten months of this year reached 2.4 trillion yuan, a year-on-year decrease of 14.9%; the average sales price remained at 21,195 yuan per square meter in October. The performance of leading developers was relatively resistant to decline. The sales of the top five and top ten developers declined by 2% and 5%, respectively. Among large state-owned enterprises, China's overseas development and sales performance of China Resources Land are stable. Land concession expenses of the top 100 developers fell 23% year over year in October. The bank pointed out that domestic housing stocks have been adjusted by about 20% since September, maintaining a neutral view on the short-term stock price performance of the industry and continuing to be optimistic about leading state-owned enterprises.

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