Major international hedge funds and investors are buying shares in China’s real estate sector, with the expectation that the prolonged downturn in this sector will come to an end and recovery will begin.

Major international hedge funds and investors are purchasing shares in China’s real estate sector, anticipating that the prolonged crisis in this industry is nearing its end and a recovery is underway.

Rising housing prices in major cities and the financing plans of China Vanke, a leading company in the Chinese real estate sector, have fueled expectations among hedge funds that the sector is likely to rebound this year.

Investors are primarily focusing on state-owned leading construction companies and major online real estate brokers, closely monitoring their movements.

For instance, Shanghai Chongyang Investment Management is increasing its holdings in state-owned major construction firms actively acquiring land in highly developed cities.

Similarly, Hong Kong-based investment firm Golden Nest Capital is investing in these companies as well, viewing the reduced competition in the market—caused by the crisis—as a competitive advantage.