China has recently asked Hong Kong developers to make active contribution to resolve the city's housing supply problem. Learning from experiences of regulatory uncertainties on education, Macau gaming and other sectors, JPMorgan projected Hong Kong developers' prices to underperform the market in short run given concerns about their address to the housing issue.
The broker assumed two stress test scenarios, i.e. developers' agricultural land donation to the government, and a zero DCF value for their future development projects. Under which, CK ASSET (01113.HK) and NEW WORLD DEV (00017.HK) will have the least downside risks from the current price levels.
The broker assumed two stress test scenarios, i.e. developers' agricultural land donation to the government, and a zero DCF value for their future development projects. Under which, CK ASSET (01113.HK) and NEW WORLD DEV (00017.HK) will have the least downside risks from the current price levels.