Deutsche Bank recommended holding Chinese real estate (0127.HK) and raised the target price from HK$7.2 to HK$8.4.

The bank said that since November last year, Huazhi's stock price has significantly outperformed the Hang Seng Index by 60%. The current price is already at a premium compared to other real estate stocks, and there is limited room for growth; however, with the market's expectations that its majority shareholders will increase their holdings and may propose privatization, there is not much room for decline. As Huazi continues to buy back shares, Deutsche Bank raised its 2009 net asset value forecast per share by 6% to HK$17.7, simultaneously raising the target price.

Huazi declined 2.63% to HK$8.53 yesterday.