JPMorgan-ChinaHK Property The whitelist may not benefit distressed d...-106230123

AsiaPacificEquityResearch31January2024China/HKPropertyChinaPropertyKarlChanACThewhitelistmaynotbenefitdistresseddevelopers/(852)2800-8513Implicationsofanoffshorewinding-upkarl.chan@jpmorgan.comBloombergJPMAKCHANThefiverequirementstobeincludedina“projectwhitelist”(项目白名单),inourview,maynotbenefitmanydistresseddevelopers.Inreality,webelievemostJocelynGaoqualifiedprojectsmaystillbethosedevelopedbySOEsandhigh-qualityPOEs.Separately,investorsarerecentlymoreconcernedabouttheimpactofadistressed(852)2800-8529developer’soffshorewinding-uporder.Ingeneral,webelieveonshoreoperationsjocelyn.gao@jpmorgan.commayseelimitedimpactastheMainlandChinacourtwilllikelyputhomebuyers’interestsatahigherpriority(asanonshoreliquidationmayworsentheprogressofVenusChoibuildingcompletions).Kaisa&Loganarethenextdistresseddeveloperstofaceahearingonwinding-uppetition.Forthesector,thesharepriceimpactof(852)2800-8599Guangzhou’sHPReasing(more)isexpectedlylimited.Accordingly,webelievevenus.choi@jpmorgan.comthelatesteliminationofHPRinSuzhouandverymildeasingofHPRinShanghaiJ.P.MorganSecurities(AsiaPacific)Limited/willhavelimitedimpactonshareprices.J.P.MorganBroking(HongKong)LimitedThefiverequirementsofaprojectwhitelist:On30thJanuary,ChinaRealEstateNewsreportedthat,atameetingcalledbyMOHURD,itwasproposedthatbanks’fundingsupportshouldbegiv...