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Prof. Shusong Ba, Professor of Practice in Finance at HKU Business School, spoke at “The 6th HKU Quarterly Forum on China Economy", highlighted recent data indicating signs of recovery in the first-hand real estate market, with tier-one and emerging tier-one cities expected to achieve stabilisation after declines. However, most cities will still face downward pressure on housing prices. Prof. Ba stated, “Looking ahead, China’s real estate market will generally be in a transition phase between old and new cycles and models. The negative effects of the old cycle need to be absorbed, while the positive factors of the new cycle need room to grow. According to data, China's total real estate market value accounts for over 200% of GDP, whereas in the United States, it is less than 80%. The previous model, driven by real estate expansion and debt growth, is no longer sustainable. Therefore, the goal of market development should not be to return to historical peaks, but to gradually stabilise at a new equilibrium level, allowing sufficient time for the new cycle to develop.”