大中华区权益及债券产品摘要：香港一手住宅销售放缓

slows; Bond: OW LASUDE ‘26IndustryOverview HKprimaryresidentialsalespaceslows the 2,ooO+ monthly average over the past five months, as developers appear to bepacing new launches more cautiously.We attribute the deceleration to a negative wealth Greater ChinaReal Estate/Property Credit ResearchSirius ChanResearch Analyst effect from recent local equity market weakness,renewed concerns over US rate hikes,and uncertainty stemming from Mainland China's newly announced offshore investmentrules; we expect the latter overhang to persist near term until clearer implementationdetails emerge.-Karl Choi (Equity Research)Central govt'financing subsidy to aid urban renewalAt a policy briefing held by the State Council, the Vice Minister stated that RMB 97bn Merrill Lynch (Hong Kong)+85235083100sirius.chan@bofa.comJoyce LiangResearch AnalystMerrill Lynch (Singapore) from the central budget and RMB 16Obn ultra-long-term special government bonds will joyce.liang@bofa.comXiang Gao, CFAResearch AnalystMerrill Lynch (Singapore) be allocated to support local governmentsurban renewal in2026.Comparedwith theannual urban renewal investment exceeding RMB 3tn, the bulk of funding will be bornelending. We continue to expect the incremental impact of the latest urban renewalprogram to be relatively minor. - Karl Choi (Equity Research)ChinaHY:vield+18bpto9.6%:HKIG:sprd-3bpto61bp xiang.gao@bofa.comSuyang LuResearch AnalystMerrill Lynch (Hong Kong) suyang.lu@bofa.comEquity ResearchKarl Choi, CFA >>ResearchAnalvst Merill Lynch (Hong Kong)+85235083108karl.choi@bofa.comFan Tso, CFA >>Research Analyst In the past week, the average yield of China HY property bonds (ex. VNKRLE) widened18bp WoW to 9.58%,which represents 162bp tightening YTD.There was no new issuance in the sector during past week, with YTD net redemption remaining atUss1.4bn. For sector news, Beijing released implementation guidelines to promote high-qualityurbandevelopment.Vankereceivedapprovalfrombanks toextendRMB1.184bnloans in total perDebtwire.Separately,United Overseas Bank (UoB)has assumed controlof MidtownManhattan'sBushTowerafterVankedefaultedonaUSs12OmnloanperOctus.For HK, the average OAS of HK IG property bonds tightened 3bp WoW to 61bp.Weare now OW LASUDE'26 (see report) whichcan offeran attractive alpha opportunityamid the HK property market recovery. Our OW is driven by (1) still decent upside basedon Debtwire-reported LME terms and (2) c.1x interest coverage with gradualdeleveraging backed by further asset & property sales.We also acknowledge thecompany's commitment to addressing its debt issue, reflected by its proactive assetsales. Key things to watch: completion of CCB Tower sale, progress in LME talks &further property/ asset sales. - Sirius Chan (Credit Research) Merrill Lynch (Hong Kong)fan.tso@bofa.comEric Du >>Research Analyst Merrill Lynch (Hong Kong)eric.du@bofa.com YTD: year-to-date VNKRLE:ChinaVanke Reform Commission invest in HK-listed stocks throughstock connect program CN: China CREIS: China Real Estate IndexSystem See Exhibit 9 and 10 for list oftickers and corresponding issuernames. Southbound interest summary Greater China property - Equity/bondperformanceExhibit 2: China Property Developers'bond yields vs. share pricesExhibit 3: Hong Kong property issuers'bond spreads vs.share prices The average bond yield widened 18bp WoW to 9.58%, and the share The average bond spread (OAS) tightened 3bp WoW to 61bp and the shareprice -7.2% Wow.250 price -0.9% WoW. The average yield of benchmark bonds widened 10bp WoW on average basis. 140 Credit tickers mentioned in the report. Below are the company names of related equity tickers Equity tickersCompany name Valuation& risk Lai Sun MTN Ltd (LASUDE)We are OW LASUDE'26 which can offer an attractive alpha opportunity amid the HK liability management exercise (LME) terms, (2) still compelling 4-9pt upside based onreported LME terms, and (3) c.1x interest coverage with gradual deleveraging backed byaddressing its debt & liquidity issues, reflected by its proactive asset sales. Downside risks to our recommendation: (1) meaningful fundamentals deterioration, (2)poor LME terms, (3) weak property sales, (4) unsuccessful loan refinancing, (5) limited/untimely asset disposals, (6) lack of willingness to tackle debt/ liquidity issues, (7)material support to subsidiaries, and (8) hard default Upside risks to our recommendation: (1) significant fundamentals improvement, (2) veryfriendly LME terms, (3) strong property sales, (4) strong funding access, and (5) timelyand meaningful asset sales Analyst Certification We, Karl Choi, CFA and Sirius Chan, hereby certify that the views each of us hasabout the subject securities and issuers. We also certify that no part of our respectivecompensation was, is, or will be, directly or indirectly, related to the specificrecommendations or view expressed in this research report. Lai Sun MTN Ltd. / LASUDE DisclosuresImportant Disclosures Lai Sun