Citi names 5 China property top picks, sees Aug-Oct rally

Citi Research maintained a positive view on China's property sector, naming five developers as top picks ahead of an expected rally from August to October.

"Resilient transaction volumes in core cities and a low-base effect support our constructive stance," a Citi research report said. The broker expects developers to step up new project launches from September, with the end-of-July Politburo meeting likely to release supportive signals including further relaxation of provident fund housing purchases and home trade-in schemes.

Citi identified CHINA RES LAND (01109.HK), C&D INTL GROUP (01908.HK), BEKE-W (02423.HK), CHINA JINMAO (00817.HK) and CHINA OVERSEAS (00688.HK) as its top picks. Five developers already logged growth in contracted sales during the first half of 2026: CHINA OVERSEAS rose 12 percent year-over-year, CHINA JINMAO gained 8 percent, China Merchants Shekou added 8 percent, CHINA RES LAND climbed 6 percent and CH OVS G OCEANS (00081.HK) surged 15 percent.

The broker expects sector sales growth from July to September to stabilize, supported by the low-base effect and policy tailwinds. Citi said weakness in interim results of property developers is likely to be slightly better than the market's pessimistic expectations, while management guidance on sales and margins may provide additional support.

What's at stake for investors

The positive call comes as China's property sector remains under pressure from a prolonged downturn, with many developers facing liquidity constraints and weak demand. A sustained rally would signal that policy measures are gaining traction, potentially lifting valuations across the sector. Investors will watch the Politburo meeting later this month for concrete policy signals, followed by the September launch season as the next key catalyst for developer sales momentum.

This article is for informational purposes only and does not constitute investment advice.