H Shares Performance: Various H shares showed mixed performance with C&D International Group and China Overseas experiencing declines, while China Res Land and China Vanke saw slight increases. Short selling ratios varied significantly among these stocks.

A Shares Overview: A shares like Binjiang Group and Merchants Shekou also displayed positive movements, but some, such as Poly Developments and Vanke A, were rated as underperforming with reduced target prices.

Market Sentiment: Analysts from BofAS predict more aggressive property policies in China by March and April, favoring companies like China Resources Land and China Overseas Land & Investment.

Short Selling Data: The short selling data indicates varying levels of investor confidence, with some stocks experiencing high short selling ratios, reflecting market skepticism.

Stock Performance Overview: Various Hong Kong stocks showed mixed performance, with Agile Group and C&D International Group experiencing slight gains, while CIFI Hold GP and China Jinmao saw declines.

Investment Ratings: Investment ratings varied across companies, with several stocks like C&D International Group and China Overseas rated as "Buy," while others like CIFI Hold GP and Country Garden were rated as "Sell (High Risk)."

Short Selling Activity: Significant short selling activity was noted, particularly in stocks like KE Holdings and C&D International Group, indicating investor caution or bearish sentiment.

Market Insights: JPMorgan highlighted that mortgage subsidies alone may not be enough to revitalize the Chinese property market, suggesting a need for broader measures to attract investor confidence.

State-owned Enterprises Performance: CHINA RES LAND, CHINA OVERSEAS, and CHINA JINMAO are rated as overweight, with varying short selling ratios and target prices, while CHINA JINMAO experienced a slight decline in share price.

Private Enterprises Overview: CHINA VANKE and LONGFOR GROUP are rated underweight and overweight respectively, with CHINA VANKE showing a modest increase in share price, while COUNTRY GARDEN and SUNAC are also rated underweight with minimal price changes.

Property Managers Insights: CHINA RES MIXC and POLY PPT SER are highlighted as overweight with significant price increases, while other property managers like CG SERVICES and A-LIVING have mixed ratings and short selling ratios.

Market Analysis Commentary: JPMorgan notes that mortgage subsidies alone may not be sufficient to revitalize the Chinese property market, indicating a cautious investor sentiment without significant overreactions observed.

Market Performance: Hong Kong stocks experienced a decline, with the HSI dropping 334 points (1.3%) to close at 25,760, while the HSCEI and HSTECH also fell by 1.7% and 1.6%, respectively. Total market turnover decreased to $164.361 billion.

Financial Sector Movements: HSBC Holdings saw a slight increase of 0.2% following a leadership change, while HKEX and AIA both fell by approximately 1.5%. Chinese insurers, including PICC Group and China Life, also experienced declines of 2.6% and 3.6%.

Impact of Investigations: PICC P&C's share price dropped 4% amid news of its president being investigated, contributing to a broader negative sentiment in the market.

Real Estate Sector Updates: R&F Properties' shares fell 3.1% after creditor approval for USD note restructuring, while China Vanke's shares were placed on Rating Watch Negative by Fitch, leading to a 3% decline in its stock price. Other Chinese developers also saw similar declines.

HSBC Research on CHINA VANKE: HSBC Research downgraded CHINA VANKE from Hold to Reduce, citing concerns over its credit image and potential debt restructuring, while maintaining a positive outlook on other developers like CHINA RES LAND and SEAZEN.

Systemic Risk in Chinese Property Sector: The report indicates that the systemic tail risk in the Chinese property sector is manageable, with expectations of more policy support to stabilize the market.

Potential for Short Squeeze: HSBC noted that meaningful stimulus policies could lead to a short squeeze, presenting upside risks for stock prices, particularly for higher-quality private-owned enterprises (POEs) like LONGFOR GROUP.

Factors Accelerating Policy Implementation: Four key factors are expected to drive policy implementation: credit risks from the Vanke incident, a high year-end sales base, buyer hesitation for subsidies, and government motivation for the upcoming “15th Five-Year Plan.”