Week 39 Wrap - volume pulled back with weakening leading indicators; BJ/SH unveiled implementation rules for Aug 28 reform

Key highlights this week cover a policy update and market performance. On policy, Beijing and Shanghai issued city-level implementing rules on Sep 24/28 for the Aug 28 reforms, covering land payment schedules extended with no interest, caps on buyers' reservation deposits, more clarity on projects' eligibility for presales, tighter escrow controls on mortgage proceeds withdrawal, and refinancing that matches developer loan disbursement to construction progress, with Shanghai highlighting support for eligible developers' project-based financing through bonds, equities, ABS and REITs; the Ministry of Natural Resources outlined a shift from new land supply to revitalizing existing land and capturing long-term operating returns. On market performance, primary transaction volumes fell 14% wow and secondary transaction volumes contracted 39% wow, with new home search activity and secondary subscription sales and visitation weakening;