Greater China: Equity & Bond Property Wrap: Equity: inventory edged down in May; Bond: Lai Sun’s creditor-friendly LME

Research evidence excerpt

Greater China: Equity & Bond Property Wrap: Equity: inventory edged down in May; Bond: Lai Sun’s creditor-friendly LME

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Greater China: Equity & Bond Property Wrap

Equity: inventory edged down in May;

Bond: Lai Sun’s creditor-friendly LME

Industry Overview

Southbound interest favored mainland developers 24 June 2026

As of June 22, we note southbound interest added to mainland developers but trimmed Cross Asset Research

for HK property shares. Despite the stock price weakness across the sector in June, Greater China

average southbound ownership in mainland developers edged up by 0.22% sequentially Real Estate/Property

MTD on average. The most notable southbound ownership increases were for CRL and Credit Research

COLI, followed by C&D, Poly Real Estate, and COGO. Southbound interest in HK Sirius Chan

property/ landlord names edged down by 0.11% sequentially MTD on average – highly ResearchMerrill LynchAnalyst(Hong Kong)

likely marking the 5th consecutive month of lower southbound ownership. Southbound +852 3508 3100

sirius.chan@bofa.com

ownership decline was all major names MTD. — Karl Choi (Equity Research)

Joyce Liang

China inventory turnover months edged down in May ResearchMerrill LynchAnalyst(Singapore)

joyce.liang@bofa.com

According to CRIC, May inventory months (inventory with pre-sale permits divided by

Xiang Gao, CFA

trailing 3-month new home sales) across tier-1/2/3 cities fell to 18x/26x/38x (from Research Analyst

25x/33x/44x in April), reflecting improved new home sales run rate in recent months and Merrill Lynch (Singapore)

xiang.gao@bofa.com

continuous edging down of outstanding inventory. Shenzhen and Hangzhou remained the

Suyang Lu

tightest markets, with inventory levels below 10 months. Shanghai and Guangzhou also Research Analyst