Shares of China Resources Land, a leading Chinese state-owned property developer, surged 5.09% on Wednesday during intraday trading. This sharp rise comes amidst growing optimism about the potential recovery of China's primary property market.

According to analyst William Wu from Daiwa, the outlook for China's primary property market remains challenging in 2025, with the potential for continued downward pressure on new home sales and prices. However, Wu notes that sales and prices in higher-tier cities are likely to bottom out this year.

While China's current property stimulus measures, focused on destocking, may have limited impact in the first half of the year, Wu suggests the possibility of the government shifting its approach with a new set of stimulus measures in the second half. Daiwa recommends investors to stick with leading state-owned developers like China Resources Land and China Overseas Land & Investment as their top picks.