JPMorgan Chase & Co issued a report that China Shipping Properties intends to spend up to 950 million yuan to acquire project supervision business. Affected by the news, China Shipping property shares fell 27 per cent in the past two trading days, compared with a 0.8 per cent drop in the Hang Seng Index over the same period. The bank said that while agreeing that the deal was overpriced and unnecessary, it believed that the market had overreacted because the size of the transaction was small and the post-transaction profit structure was still skewed towards non-cyclical business. At present, the price-to-earnings ratio of the stock is 10 times earnings, which is similar to that of state-owned enterprises, such as Greentown services. As the deal undermined investor confidence in corporate governance, it lowered the target price-to-earnings ratio from 18 to 14. The target price was lowered from HK $11 to HK $9, with a rating of "overweight".