"Big Banks" JP Morgan: The "Three Red Lines" of Chinese Real Estate Fade Out as Non-New News

AASTOCKS
2026.01.30 03:01

JP Morgan published a report stating that Chinese property stocks rose 6% yesterday morning (as of 12 PM on January 29), possibly driven by market speculation, with reports indicating that mainland authorities will no longer require real estate developers to report on the "three red lines" situation monthly.

However, JP Morgan believes that if the rise is purely a reaction to this news, the increase may not be this significant, as authorities have not enforced the requirement for developers to submit this report monthly for several years, indicating that it is not new information. Nevertheless, the bank does not rule out the possibility that this surge is driven by other market speculative behaviors.

Regarding the overall sector, the bank reiterated that the Chinese property sector may continue to outperform the market ahead of the two sessions in March and the Politburo meeting in April. The bank prefers CHINA RES LAND (01109.HK), CHINA RES MIXC (01209.HK), and CHINA JINMAO (00817.HK), but believes that in a policy-driven market, LONGFOR GROUP (00960.HK) offers the best risk-reward ratio

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