Total contract sales for new homes ex. subsidized affordable housing fell 34.7% year-on-year to Rmb719.8 billion (US$102.8 billion) in the first two months of 2020 as a result of the virus outbreak. Prices in Feb were up 5.8% year-on-year, slowing down from the 6.3% rise witnessed in Jan. With China’s real estate sector and its related industries accounting for 25% of the economy, its recovery will play a pivotal role in reflating the country’s growth. While we do not expect any major easing to its current strict purchasing policies, we believe support will come in the form of easing credit access which should provide a baseline support for the sector.