JPMorgan's report stated that mainland real estate stocks rose by 21% yesterday (2nd), compared to a 6% increase in the Hang Seng Index. Shares in financial distress surged even more by 50% to 40%. The bank believes that if support from central data or policies falls short of expectations, mainland real estate stocks may undergo drastic adjustments. However, it is recommended to seek opportunities in lagging property management stocks, considering risks and valuations, whereby Sunac (01109.HK), China RES MixC (01209.HK), and Poly PPT Ser (06049.HK) are still seen to have upside potential.

JPMorgan's investment ratings and target prices for mainland real estate and property management stocks are as follows:

Stock | Investment Rating | Target Price (HKD)

Major developers

China RES Land (01109.HK) | Shareholding | HKD 30

China Overseas Development (00688.HK) | Shareholding | HKD 15

China Jinmao (00817.HK) | Shareholding | HKD 0.46

State-owned enterprises

China Vanke (02202.HK) | Shareholding | HK$3.3

Longfor Group (00960.HK) | Neutral | HK$9

Seazen (01030.HK) | Shareholding | HKD 0.8

Private Enterprise

Country Garden (02007.HK) | Shareholding | HK$0.4

Sunac (01918.HK) | Shareholding | HK$0.5

Shimao Group (00813.HK) | Shareholding | HK$0.25

Property Management Stocks

China Res Mixc (01209.HK) | Shareholding | HKD 31

China Ovs Ppt (02669.HK) | Neutral | HKD 5

Poly Property (06049.HK) | Shareholding | 35 yuan

Greentown Ser (02869.HK) | Shareholding | 4.2 yuan

CG Services (06098.HK) | Shareholding | 3.45 yuan

A-Living (03319.HK) | Shareholding | 2.2 yuan

Sunac Services (01516.HK) | Shareholding | 1.2 yuan