On October 30th, JPMorgan stated in a report that China's home appliances have high and stable gross margin, with business areas diversified, therefore considered as one of the more bullish industries in the mainland. On the other hand, JPMorgan believes that home appliance stocks directly benefit from mainland stimulus policies, combined with the current expected average PE ratio of 12.2 times next year, which is lower compared to global peers, once the future quarterly results are ideal, the valuation is expected to be raised. The firm is most bullish on Haier, with a "shareholding" rating, but has lowered Haier's target price from HK$38 to HK$36.