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<Research>JPM Estimates CN Developers to Underperform in Short Term as NPC Meeting Shows No Strong Will to Boost Sector; Focus on Politburo Meeting at End-Apr
Recommend 29 Positive 55 Negative 22 |
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According to a research report by JPMorgan, the Fourth Session of the 14th National People’s Congress (NPC) opened yesterday (5th), and the latest government work report and the outline of the 15th Five-Year Plan have been released. The tone regarding the domestic property market still centers on "risk mitigation" and "stability" as key themes, showing no stronger signal of intent to boost housing prices or restore homebuyer confidence. In addition, the phrase "stop the decline and stabilize" hasn't been used for some time. The good news, however, is that investor expectations were already low. Since the NPC meeting brought no surprises, JPMorgan believes Chinese property developers may underperform the broader market in the short term, but could regain strength in early April. By then, investors will be positioning themselves for the Politburo meeting, namely the next policy window, to be held at the end of April. Although expectations remain modest, speculative sentiment could emerge in the market and drive share prices higher. JPMorgan's top picks are CHINA RES LAND (01109.HK), CHINA RES MIXC (01209.HK), and CHINA JINMAO (00817.HK). Despite the policy-driven rebound, the broker believes that state-owned CHINA OVERSEAS (00688.HK) and private LONGFOR GROUP (00960.HK) have greater upside potential. Details of the broker's ratings on Chinese property developers are available in a separate table. AAStocks Financial News |
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