According to a research report published by J.P. Morgan Chase, a review article in the latest issue of “Qiushi” magazine boosted investors' hopes. They believe that after the lack of any real policy last year, the review called for the policy to be given in one go and not adopt fueling tactics, and believes that the official discussion/tone of the real estate market may finally change this year. Given that housing prices and sales have continued to deteriorate since the second half of last year, Motong believes it is logical for policy makers to consider new discussions/directions, but believes that the article alone is not enough to indicate a change in official positions. The next policy window is the March 2 meetings and the April Politburo meeting. Among domestic housing stocks, Motong chose China Resources Land, China Resources Vientiane Life, and China Jinmao. Amidst the policy-induced backlash, I believe Longhu Group provided the best risk return.

According to a research report published by J.P. Morgan Chase, a review article in the latest issue of “Qiushi” magazine boosted investors' hopes. They believe that after the lack of any real policy last year, the review called for the policy to be given in one go and not adopt fueling tactics, and believes that the official discussion/tone of the real estate market may finally change this year. Given that housing prices and sales have continued to deteriorate since the second half of last year, Motong believes it is logical for policy makers to consider new discussions/directions, but believes that the article alone is not enough to indicate a change in official positions. The next policy window is the March 2 meetings and the April Politburo meeting. Among domestic housing stocks, Motong chose China Resources Land, China Resources Vientiane Life, and China Jinmao. Amidst the policy-induced backlash, I believe Longhu Group provided the best risk return.