Market Buzz: Three Major Catalysts Propel Real Estate Stocks
In a remarkable turn of events, the market has been buoyed by three major catalysts, leading to a robust performance across indices. The Shanghai Composite Index rebounded in the afternoon, while the Shenzhen Composite Index and the ChiNext Index continued their upward trajectory. Among the standout performers, COSMOS, a real estate company listed on the Shenzhen Stock Exchange, has caught the attention of investors.
Catalyst One: NVIDIA’s Return to China
The first major catalyst comes from NVIDIA’s announcement to resume sales of its H100 AI chips to China. This decision follows assurances from Washington that such exports will be approved. The H100 chip, tailored for the Chinese market, had been off-limits since April due to a lack of U.S. export licenses. This move is a significant win for NVIDIA’s founder, Jensen Huang, who had previously criticized U.S. chip controls as a “failure.” It also benefits Chinese companies like DeepSeek and Alibaba, which rely on NVIDIA chips for AI services competing with OpenAI. Following the announcement, Alibaba’s stock surged over 6%, marking a shift back to “All in AI.”
Catalyst Two: Strong Mid-Year Earnings
The second catalyst is the robust mid-year earnings reported by CPO concept stocks, with New Easy Shine leading the charge. The company announced a projected net profit of 37 billion to 42 billion yuan for the first half of 2025, marking a significant year-over-year increase. This strong performance underscores the resilience and growth potential within the real estate sector.
Catalyst Three: New Urbanization Policy
The third catalyst is the unexpected policy expectations surrounding new urbanization. The A-share real estate and new urbanization concept stocks rallied, with Tianbao Infrastructure, Yuzhou Development, and Zhongxin Group hitting their daily highs. The Hong Kong real estate sector also saw a surge, with Midea Real Estate jumping over 60% at one point. This rally follows the Central City Work Conference, which emphasized the development of comfortable, livable cities and the optimization of urban space structures.
COSMOS: A Closer Look
COSMOS, with its close price of 3.11 CNY as of July 13, 2025, has seen its stock price fluctuate between a 52-week high of 3.42 CNY and a low of 1.95 CNY. The company’s performance is closely tied to the broader real estate sector’s dynamics, influenced by policy changes and market sentiment.
Market Implications
The convergence of these catalysts suggests a positive outlook for the real estate sector, particularly for companies like COSMOS. The resumption of NVIDIA chip sales to China could accelerate AI infrastructure development, benefiting real estate companies involved in smart city projects. Additionally, strong mid-year earnings and supportive urbanization policies indicate a stable and potentially growing market for real estate investments.
As investors navigate these developments, COSMOS and similar companies may present attractive opportunities, especially for those looking to capitalize on the intersection of technology and real estate. The market’s response to these catalysts will be crucial in shaping the sector’s trajectory in the coming months.