<div id="readability-page-1"><div>JPM released a research report stating that the State Council’s regulations on outbound investment (namely &#34;No. 837&#34;) have triggered investor concerns over whether mainland residents are eligible to purchase properties in Hong Kong. The bank held a conference call with legal experts, with key takeaways including: remittances from mainland residents to Hong Kong for the purpose of home purchases have never been permitted and are unlikely to be approved in the future; however, if the source of funds is offshore, mainland residents are not prohibited from buying properties in Hong Kong; meanwhile, &#34;No. 837&#34; does not appear to be aimed at curbing mainland residents from purchasing properties in Hong Kong.JPM estimates that in Hong Kong’s residential market, around 5% to 10% of transactions (accounting for 10% to 15% by value) are from non-local mainland buyers. Although tighter regulations may have a potential impact, transactions would theoretically remain unaffected if buyers can prove their funds are sourced offshore. Therefore, the bank expects this single factor will not be sufficient to derail the property market’s upcycle. That said, the property sector is still facing two headwinds, namely rising interest rate expectations and weakness in the HSI.The bank expects the Hong Kong property sector to remain range-bound in the near term. In the short run, CK ASSET (01113.HK) -0.600 (-1.293%) Short selling $47.96M; Ratio 37.788% and SINO LAND (00083.HK) -0.240 (-2.158%) Short selling $14.06M; Ratio 32.881% are expected to Outperform the market, while HENDERSON LAND (00012.HK) -0.220 (-0.824%) Short selling $54.83M; Ratio 22.874% and NEW WORLD DEV (00017.HK) -0.170 (-2.276%) Short selling $4.57M; Ratio 17.400% are likely to underperform. In addition, the bank recommends accumulating SHK PPT (00016.HK) -2.000 (-1.711%) Short selling $287.79M; Ratio 49.729% on share price weakness.(ad/u)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-16 16:25.)</div></div>

00016

01113

00083

JPMO

JPMorgan clarifies that State Council's 'No. 837' regulation does not target mainland buyers of Hong Kong properties, as offshore-funded purchases remain permitted. The bank expects the HK property market to remain range-bound due to rising interest rates and HSI weakness, but believes the upcycle will continue. JPM recommends outperformers CK Asset and Sino Land, while advising accumulation of Sun Hung Kai Properties on price weakness.

AASTOCKS News

SHK PPT

CK ASSET

SINO LAND

JPMorgan Chase

Defiance Daily Target 2X Long JPM ETF

YieldMax JPM Option Income Strategy ETF

JPM: State Council No. 837 Not Targeting Mainland Buyers of HK Homes, Expects CK ASSET  and SINO LAND to Outperform in Short Term