CN : Property - Overall - Unexpected aggressive mortgage rate cut

PBOC unexpectedly on Sunday (15 May) announced to lower mortgage rate aggressively for first-time home buyers. The new pricing mechanism, if applied, could save first-time buyers mortgage cost by 70 bps and we expect all key banks to implement it in near future. The recent aggressive supportive measures, coupled with gradual easing of lockdown in China, should lead to sales recovery in June, in our view. Reiterate our OW on strong supportive policy and attractive valuation. Top-picks: Mid-and-large caps: Longfor, CIFI CG. Small-caps: Times and KWG.