J.P. Morgan downgraded the rating of China High Speed Transmission (00658.HK) from increased holdings to neutral, raised the target price from 7.7 yuan to 8 yuan, and raised the profit forecast for 2016 to 2018 by 3%, 6%, and 5%, respectively. J.P. Morgan said that China High Speed Transmission has outperformed the market by more than 25% since the beginning of the year and has risen by more than 10% since the announcement of the merger. The bank believes that even if Fengsheng Holdings (00607.HK) has potential, the current valuation of China's high-speed transmission is equivalent to the predicted price-earnings ratio of 9 times in 2016 and 2017. There is a risk that the merger proposal may not be completed, and the company's traditional business may decline further. The bank pointed out that the merger has brought uncertainty about the future development direction of high-speed transmission in China, and there is also uncertainty about the market's perception of the value of a comprehensive enterprise whose business covers new energy, real estate, healthcare and tourism.