<Midday Update> HSI Falls 304 Points; HSTI Declines 158 Points; BABA Drops More Than 3%; HANG LUNG PPT, CHINA SHENHUA, CK ASSET, ZTE, PACIFIC BASIN Reach New Peaks

The analyst rating for HANG LUNG PPT (00101.HK) is an "Outperform" based on several key factors highlighted in the article. The partnership with Wuxi Liangxi Urban Development Company to acquire operating rights for a significant commercial project is seen as a strategic move that aligns with the company's Hang Lung V.3 strategy, which emphasizes high capital efficiency and selective reinvestment in existing projects. Additionally, CICC expects the retail sales performance of HANG LUNG PPT's malls in China to maintain positive momentum, projecting a 10% year-over-year growth in retail sales for 3Q25. These factors contribute to the positive outlook and the target price of HKD9.46 set by CICC.

The analyst rating for HANG LUNG PPT (00101.HK) is based on several key factors highlighted in the article. JPMorgan reaffirmed the stock as one of its top picks due to the continuous improvement in tenant sales in mainland China, with expectations of a 10% year-over-year growth in sales for the fourth quarter of 2025, following similar growth in the third quarter. Additionally, the company's recent acquisition of operational rights for a commercial project in Wuxi aligns with its HLP V.3 growth strategy, indicating a proactive approach to expansion. Despite a focus on debt reduction in the near term, JPMorgan believes the company can still identify growth drivers in a lower-risk manner. Consequently, they rated HANG LUNG PPT as Overweight, with a target price of $10 for June 2026.

The analyst rating from the article is primarily driven by signs of recovery in luxury and jewelry sales in Mainland China and Hong Kong, attributed to the wealth effect from the stock market and higher gold prices. UBS upgraded CHINA RES MIXC from Neutral to Buy due to its higher proportion of emerging brands and the positive outlook for luxury retail in Hong Kong, which is benefiting from a strong equity market. Additionally, UBS expressed optimism about other stocks in China's retail sector, indicating a favorable market environment for these companies. The upgrade of LAOPU GOLD to Buy was based on anticipated valuation pressure and potential product price hikes that could support short-term sales and gross margins.