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<Research>JPM: CN Housing Data Still Mired in Trough; Sector Forecast Lowered Further
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JP Morgan released a report, citing 8M24 data of the Chinese property developer industry, which showed that sales, construction activity and housing prices continued to weaken. Among the key indicators, the decline in completions accelerated radically. The broker further lowered its forecast for industry data this year, adjusting the value of residential sales from a YoY fall of 17% to a fall of 20%, new starts from a decline of 18% to a decline of 20%, and completions from a slip of 10% to a slip of 15%. Without further policy support, the downside risk for Chinese property developers will linger, the broker believed. However, precisely because the market deteriorates more than expected, the Chinese central government is likely to introduce stronger support policies (possibly before the end of September). Until then, the broker remains cautious about the Chinese property sector. In addition, the broker expected that no Chinese property developers will be spared in the face of a downbeat industry. However, they were advised to buy on dip high-quality names, such as CHINA RES LAND (01109.HK), CHINA RES MIXC (01209.HK) and POLY PPT SER (06049.HK). However, they should remain cautious about CHINA VANKE (02202.HK). Target prices are shown in a separate table. AAStocks Financial News |
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