Deutsche Bank maintained its holding rating for Chinese real estate (0127.HK), but raised the target price from HK$9.4 to HK$13.5; Deutsche Bank indicated that the company or chairman may further repurchase its shares, so it is expected that the downward support will be stable. Deutsche Bank said that for some time now, the market has been expecting approval of the company's development plan for the Weilong Road project in Aberdeen, and they believe this will be a factor driving the stock to be re-rated. Deutsche Bank raised its housing price/rent expectations because the low interest rate environment continued longer than expected, and Hong Kong's economy recovered earlier than expected; it raised profit expectations for FY2010 and FY11 by 2% and 18%, respectively, because the expected profit margins for some major projects in Hong Kong under Chinese Real Estate were better.

The stock was flat at HK$13.8 yesterday.