<div id="readability-page-1"><div>JPMorgan issued a report stating that following the &#34;Futu incident&#34; on May 22, which triggered investor concerns over tighter controls on capital outflows from mainland China, the State Council of China promulgated new regulations on outbound investment on June 1, raising further questions among investors. However, the bank believes that this regulation alone will have very limited impact on Hong Kong's residential property market.JPM explained that capital outflow controls are not new. The latest rules aim to formalize a more comprehensive legal framework and provide clearer guidance for outbound investment. While &#34;individuals&#34; have now been included under the regulatory scope, the controls appear to focus more on corporates' outbound direct investment (ODI), and there is no explicit prohibition on mainland residents purchasing properties in Hong Kong. The bank estimates that even under a worst-case scenario, where all &#34;mainland-residing mainland buyers&#34; (estimated to account for 5% to 10% of transaction volume) stop buying homes in Hong Kong, it would not overturn the property markets upcycle, as most &#34;mainland Chinese buyers&#34; reside in Hong Kong or hold Hong Kong identity cards.The bank recommends accumulating developer stocks on price pullbacks, including SHK PPT (00016.HK) -3.700 (-2.893%) Short selling $311.97M; Ratio 24.222% , SINO LAND (00083.HK) -0.080 (-0.677%) Short selling $52.26M; Ratio 47.212% and CK ASSET (01113.HK) -0.980 (-2.050%) Short selling $59.40M; Ratio 24.261% ; for landlords, it suggests SWIREPROPERTIES (01972.HK) -0.140 (-0.617%) Short selling $5.65M; Ratio 11.861% , Hongkong Land and HANG LUNG PPT (00101.HK) -0.150 (-1.875%) Short selling $57.19M; Ratio 45.786% . (ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-03 16:25.)</div></div>

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JPMorgan reports that China's new outbound investment rules have limited impact on Hong Kong's residential market, as controls focus on corporate ODI rather than individual property purchases. The bank advises buying dips in developer stocks like CK Asset and SHK PPT, citing resilience against potential drops in mainland buyer demand.

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JPMORGAN CHASE & CO. 4.20% DEP SHS REPSTG 1/400TH PFD SER MM

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JPMORGAN CHASE & CO. 4.625% DEP SH RE 1/400TH INT NO CU PF LL

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JPMORGAN CHASE & CO. 4.55% DEP SHS REPSTG 1/400TH PFD SER JJ

JPMORGAN CHASE & CO. 4.75 DEP SHS REP 1/400 NCUM PFD SR GG

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JPM: Mainland's New Outbound Investment Rules Have Limited Impact on HK Home Market, Urges Buying on Dips CK ASSET , SHK PPT , etc.