In the past two trading days, the real estate sector interpreted a “roller coaster” market — a sharp rise and then a sharp decline. Yesterday, prices in the real estate-related industry chain all showed a sharp correction. Among them, Shenwan's second-tier real estate services fell by more than 7%, while futures products for building materials such as glass, coking coal, and rebar fell to a standstill across the board. What is behind the sharp decline, are the benefits realized, or are the relevant policies introduced falling short of expectations? In response, a number of private equity institutions said that now is a stage of increased capital market volatility, and there will be a phase of turbulence between valuation restoration and fundamentals supporting the rise in the stock market. In this gap period where expectations are ahead and fundamentals lag behind, transactions based on different market views will lead to increased volatility. This is a reasonable phenomenon. However, investors should never misjudge the biggest fundamentals, and don't underestimate policy determination.

In the past two trading days, the real estate sector interpreted a “roller coaster” market — a sharp rise and then a sharp decline. Yesterday, prices in the real estate-related industry chain all showed a sharp correction. Among them, Shenwan's second-tier real estate services fell by more than 7%, while futures products for building materials such as glass, coking coal, and rebar fell to a standstill across the board. What is behind the sharp decline, are the benefits realized, or are the relevant policies introduced falling short of expectations? In response, a number of private equity institutions said that now is a stage of increased capital market volatility, and there will be a phase of turbulence between valuation restoration and fundamentals supporting the rise in the stock market. In this gap period where expectations are ahead and fundamentals lag behind, transactions based on different market views will lead to increased volatility. This is a reasonable phenomenon. However, investors should never misjudge the biggest fundamentals, and don't underestimate policy determination.