GRA Market Weekly (2025-08-01)

Policy Watch

CPC Politburo: implement the Central Urban Work Conference agenda and pursue high-quality urban renewal

The Politburo met on 30 July. The meeting set out arrangements for the 15th Five-Year Plan period and updated requirements for economic work in the second half of the year. It called for detailed implementation of a more proactive fiscal policy and moderately loose monetary policy to fully release policy effects; for effectively unlocking domestic demand, including an in-depth special programme to boost consumption; for continued prevention and resolution of risks in key areas; and for implementing the Central Urban Work Conference agenda and carrying out urban renewal to a high standard.

A notable change: for the first time, property-sector risk was not directly mentioned. The meeting stated that risks in key areas should continue to be prevented and resolved, the Central Urban Work Conference agenda implemented and urban renewal pursued to a high standard; that local government debt risks should be defused actively yet prudently, with new hidden debt strictly prohibited and local financing platforms wound down in a forceful, orderly and effective manner; and that the domestic capital market's attractiveness and inclusiveness should be enhanced to consolidate its recovery momentum.

HKSAR Government: studying with Beijing a relaxation of cross-border fund transfers for mainland talent buying homes in Hong Kong

On 30 July, the HKSAR Government published the Report on Hong Kong's Business Environment, presenting the city's latest developments and advantages to the community and to investors at home and abroad, and setting out its open, safe, stable, efficient and international business environment. Meeting the press after the launch, Financial Secretary Paul Chan responded to market interest in financial and housing market developments. He expressed optimism about Hong Kong's residential market and noted that the government is working with central ministries to study whether, within an appropriate scope, mainland talent coming to Hong Kong could be allowed to remit funds to buy homes, while avoiding capital outflows.

Beijing: stronger home-purchase support for families with multiple children

On 31 July, the General Office of the Beijing Municipal People's Government issued the Work Measures on Improving the Birth-Support Policy System and Building a Birth-Friendly Society. The measures establish a childbirth subsidy system, to be implemented in line with the city's economic and social conditions, alongside existing policies such as individual income tax deductions for care of children under three and for children's education. Housing support is to be strengthened: effective supply of affordable housing will be increased through multiple channels, families with more minor children may be given priority allocation of public rental housing with appropriate accommodation in unit-type selection, and where grandparents and parents apply for affordable housing at the same time, allocation nearby will be prioritised. Home-purchase support for families with multiple children will be stepped up, including appropriately higher housing provident fund loan limits. Multi-child families renting registered housing may withdraw provident fund contributions up to their actual monthly rent, unconstrained by monthly contribution caps.

Market Watch

Nanjing: land auctions raise over RMB 6.8 bn

On 30 July, Nanjing successfully sold 13 residential-use plots at the municipal level, with total site area of 410,300 sqm, total planned GFA of 522,000 sqm and a combined starting price of RMB 6.7555 bn, raising RMB 6.8915 bn in total. The Hanzhongmen Avenue plot in Jiangdong Sub-district, Gulou District went through 89 rounds of bidding before Wenzhou Ganyi Real Estate Development Co., Ltd. (Beigu Holdings) won it for RMB 373 m, an accommodation value of RMB 40,215/sqm and a 32.74% premium. Another plot in Moling Sub-district, Jiangning District went through 43 rounds of bidding before Nanjing Langyi Real Estate Co., Ltd. secured it for RMB 166 m, at RMB 14,755/sqm and a 33.87% premium.

Project Watch

Shanghai Electric's first government-subsidised rental housing project lands

Shanghai Electric Group recently unveiled Jingyunli, its first government-subsidised rental housing project, which will provide high-quality, fully serviced and comfortable rental homes for group employees and talent in the surrounding area, with a concentrated launch expected in September. The Jingyunli project sits at 666 Luochuan Middle Road in Jing'an District, in the core of the Daning area, with total GFA of c. 50,900 sqm. It offers 666 apartments ranging from 39 to 92 sqm, spanning studios, two-bedroom and three-bedroom layouts to serve single professionals, families and other tenant profiles.

Corporate Watch

Joy City Property proposes delisting

On the evening of 31 July, Joy City (000031) announced that its controlled subsidiary Joy City Property Limited (0207.HK) intends to make a privatisation proposal to shareholders other than the company and Get Bloom Limited, buying back shares by way of a scheme of arrangement at HKD 0.62 per share, for a total of c. HKD 2.932 bn. The announcement added that Joy City Property will repurchase shares through the scheme of arrangement and plans to withdraw its listing from the Hong Kong Stock Exchange.

Vanke's seventh Shenzhen Metro loan of the year brings the total to c. RMB 22.7 bn

On 30 July, Vanke (000002.SZ) announced that major shareholder Shenzhen Metro Group would provide a further shareholder loan of up to RMB 869 m, again to repay principal and interest on Vanke's publicly issued bonds and interest on designated borrowings approved by the lender, still priced at 2.34%. The loan tenor has been adjusted: it runs from contract signing to 2 July 2028 - still roughly three years overall - and can be drawn in tranches, with a final drawdown date of 31 August 2025. With the lender's consent, the loan may also be extended. Shenzhen Metro required security this time: Vanke pledged investment properties, real estate titles of fixed assets and unlisted company equity worth up to RMB 1.298 bn, at a 70% pledge ratio. Shenzhen Metro has now provided seven shareholder loans to Vanke this year, totalling c. RMB 22.688 bn. With this support, Vanke repaid c. RMB 16.49 bn of public debt in the first half, and has no offshore public bonds maturing before 2027.

BlackRock completes a new real estate fund raise

Market sources report that BlackRock, the world's largest asset manager, has completed fundraising for BlackRock Europe Property Fund VI (EFVI), its sixth European value-add real estate fund, closing with EUR 1.2 bn of equity and co-investment capital - slightly below the EUR 1.29 bn plus EUR 200 m of co-investment raised by its 2020-vintage predecessor.

EFVI launched fundraising in April 2023 and completed a EUR 774 m first close by year-end. After a second close in February 2024 brought the fund to EUR 961 m, it held its final close at the end of March this year.

Schroders Capital adds to China real estate

Schroders Capital's real estate investment arm recently formed a strategic partnership with Zhejiang-based West Zone International (Xizi International), jointly establishing an equity investment platform and announcing plans for a private real estate equity fund of c. RMB 3 bn.

The partnership will focus on quality office buildings in core Yangtze River Delta cities (such as Shanghai, Hangzhou and Nanjing) and on consumer infrastructure opportunities, including aging shopping malls, logistics and warehousing upgrades and new community retail.

Listed company Rongda Technology buys Shanghai assets

Rongda Technology (09881.HK) announced that on 30 July 2025, Shanghai Rongda Digital Intelligence Technology Co., Ltd. (a direct wholly owned subsidiary) as buyer entered into an agreement with Shanghai Ruijiake Industrial Co., Ltd. as seller, under which, on the agreed terms and conditions, the buyer will acquire the properties for a total consideration of RMB 42.91 m. The properties are Buildings 172 and 173, Lane 3938, Huqingping Highway, Qingpu District, Shanghai - industrial buildings with total GFA of c. 1,810.59 sqm.

The industrial buildings sit within the Mobile Smart Land Industrial Park in Qingpu District. Located in the core of Qingpu New Town, the park covers a site of 155,000 sqm with total GFA of 400,000 sqm, adjacent to the Hongqiao hub with convenient transport, positioned to capture Yangtze River Delta integration and CIIE spillover opportunities. The park centres on the digital information industry, focusing on mobile internet, smart hardware, IoT and artificial intelligence.

Stalled Jing'an mixed-use project in Shanghai sells at auction for reserve price of RMB 885 m

On 1 August, Puxi Grand Gateway Plaza (Puxi Jiacheng Plaza) in Pengpu Xincun, Jing'an District, Shanghai sold on Alibaba's auction platform at its reserve price of RMB 885,631,543.14, against an appraised value of RMB 1,928,346,164.87 - of which land accounted for RMB 1,318,658,693.77 and buildings RMB 609,687,471.10. The winning bidder was Shanghai Xinxiu Fuyi Enterprise Management Co., Ltd., whose ultimate majority shareholder, on a look-through basis, is China Cinda Group.

Puxi Jiacheng Plaza is a large commercial complex in Pengpu Xincun Sub-district, Jing'an District, developed by Shanghai Jiacheng Enterprise Development Co., Ltd. Construction began in 2012 and halted at the end of 2016 due to funding problems, leaving the project stalled. The project has obtained its pre-sale permit, with total GFA of 153,876.15 sqm (including a 55,039.79 sqm underground garage) and land-use-right area of 38,310.79 sqm, zoned for commercial and office use.

Shanghai housing transactions, July 2025

Shanghai recorded 11,948 new-home transactions in July 2025, covering c. 973,000 sqm. Secondary registrations totalled 19,337 units (all-inclusive data covering commercial units, parking spaces, etc.), down 1,407 units from June 2025 (20,744 units) and down 1,043 units from July last year (20,380 units), a modest decline of c. 5.1% YoY.

China Galaxy Securities: sector-wide valuation repair could bring beta opportunities

On 31 July, China Galaxy Securities said that as policy effects gradually materialise, valuations across China's real estate sector could see a broad repair. Leading developers may achieve operational improvement on the back of lower funding costs and high market share in core areas, potentially delivering sector-wide beta opportunities through valuation recovery.