Deutsche Bank reiterated its positive view of 1387.HK after the company's Guiyang project was approved. Deutsche Bank said the approval of the project showed that people and businesses could continue to replicate their successful business models across the country, further strengthening already strong development arrangements. Deutsche Bank raised its target price to HK $2.40 from HK $2.20 to reflect the approval of the project and maintain its buy rating.

After the Guiyang project is approved, the total developable area of Renhe business will reach about 5.4 million square meters, thus ensuring strong profit growth in the future.

Deutsche Bank added that some local governments providing projects through tenders rather than private negotiations could be an opportunity for people and businesses rather than a potential threat to increased competition. because a key aspect of government bidding is to consider the strong track record of bidders.

The stock fell 2.63 per cent to HK $1.48.