China Real Estate Residential resilience vs retail resistance

Research evidence excerpt

China Real Estate Residential resilience vs retail resistance

17 June 2026

China Real Estate EquitiesREMD

Residential resilience vs retail resistance China

◆ May NBS data suggests an uneven recovery between Stephen Wang*, CFA

stabilising residential market and weakening retail sales Analyst, Asia Real Estate The Hongkong and Shanghai Banking Corporation Limited

stephen.wang@hsbc.com.hk

◆ The initial stage of residential inflection is city- and segment- +852 2284 1675

specific, insufficient to drive broad consumption recovery Michelle Kwok*

Head of Asia Real Estate and HK Equity Research

The Hongkong and Shanghai Banking Corporation Limited

◆ Prefer CRL and C&D (both Buy); maintain our non-consensus michellekwok@hsbc.com.hk

Hold on CR Mixc +852 2996 6918

Oliver Yu*

Analyst, Asia Real Estate

May NBS release reinforces our preference for residential. Property sales in May The Hongkong and Shanghai Banking Corporation Limited

rose 11% m-o-m and pricing continues to hold up well in tier-1 cities. Encouragingly, oliver.y.o.x.yu@hsbc.com.hk

+852 2288 2050

the y-o-y decline in nationwide secondary prices narrowed to 5.9% from 6.2% in

Charlotte Ye*

April, suggesting an accelerated price discovery process amid rising transactions. We Associate

reiterate our constructive view on top-tier-led housing stabilisation in 2026, which Guangzhou

should improve earnings visibility for high-quality developers. While high-frequency

indicators point to a moderate slowdown in June sales, we think sales momentum * Employed by a non-US affiliate of HSBC Securities (USA) Inc, and is not registered/ qualified pursuant to FINRA regulations.

remains healthy, and early signs of recovery in land market should help lift price