UOB Kay Hian released a research report maintaining an "In-Line" rating on the mainland China and Hong Kong property sectors. The firm's top stock picks are CHINA RES LAND (01109) and SHK PPT (00016), both rated "Buy" with target prices of HK$34.1 and HK$106.9 respectively.

The brokerage upgraded KERRY PPT's rating to "Buy" while maintaining its target price at HK$22.8. The firm believes that although the Jinling Huating project has higher construction costs, it is expected to generate solid profits after the residential portion is completed in 2027, which will help boost the company's core net profit. The recent stock price decline may provide an attractive entry opportunity for investors.

KERRY PPT (00683)'s Shanghai residential project Jinling Huating Phase II saw its first batch of units sold out on the launch day, achieving a subscription rate of 190%. The average selling price reached RMB 205,000 per square meter, representing an increase of RMB 16,000 from the March launch. Data shows that buyers were mainly owner-occupiers aged 35 to 55 from high-income industries.

UOB Kay Hian believes this reflects steady demand for mainland residential properties, but investment sentiment remains weak. October market data also showed year-on-year declines in both new home and second-hand property transactions nationwide, indicating weakened investment demand in major cities.