JPMorgan opined in its report that the recent rebound in Chinese developers may be speculative in nature, but market expectations for new policy support are rising.

Due to market speculation about a "high-level meeting" to be held next week, Chinese developers soared by 6% on July 10. JPMorgan said that it couldn't confirm this speculation, and that profit-taking would occur if there are no concrete announcements next week. Nevertheless, weaker real estate data may drive stronger policy support.

Related NewsHSBC Research Still Upbeat About CN Property Sector, Favors CHINA RES LAND/ C&D INTL GROUP/ CHINA JINMAO
JPMorgan's top picks for fundamentals in the Chinese property sector were CHINA RES LAND (01109.HK)  -0.400 (-1.377%)    Short selling $25.79M; Ratio 9.394%   , CHINA RES MIXC (01209.HK)  -0.850 (-2.249%)    Short selling $5.54M; Ratio 6.672%   , and CHINA OVS PPT (02669.HK)  -0.060 (-1.089%)    Short selling $1.58M; Ratio 7.800%   . However, in a policy or speculative-driven rebound, distressed developers like SUNAC (01918.HK)  0.000 (0.000%)    Short selling $5.15M; Ratio 2.667%   could easily outpace the market, even though this might not be sustainable.

Balancing returns and risks, the broker believed that the best risk-reward would come from private property developer LONGFOR GROUP (00960.HK)  -0.140 (-1.375%)    Short selling $13.68M; Ratio 19.954%   and small-cap state-owned enterprise CHINA JINMAO (00817.HK)  -0.030 (-2.256%)    Short selling $3.65M; Ratio 6.583%   .
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-16 12:25.)