According to Lee Zi Jun, Head of Asia Fixed Income Credit Strategy at J.P. Morgan Private Bank, Hong Kong's real estate market appears to be gradually transitioning from a crisis period towards initial signs of recovery. For investors focused on high-quality assets, Hong Kong real estate credit offers attractive opportunities as the market turns a corner. Regarding investment strategy, Lee Zi Jun stated that while the view on Hong Kong real estate credit is becoming increasingly positive, a cautious and quality-focused investment approach is still maintained. He indicated that the preferred allocation is investment-grade credit, with developers rated BBB and above offering yields of approximately 5%. Furthermore, strategic opportunities are seen in rated perpetual bonds from high-quality issuers. A highly cautious stance is maintained towards unrated bonds. J.P. Morgan Private Bank released the second part of its "Asia Outlook 2026" series, which focuses on the Hong Kong real estate credit market, towards which the bank holds an increasingly positive view. Lee Zi Jun stated in the report: "While we remain selective, preferring investment-grade credit and maintaining caution towards the office market, the outlook has become more positive as fundamentals improve, refinancing pressures ease, and multiple demand drivers emerge." The maturity pressure for Hong Kong real estate credit in 2026 has decreased to $2.6 billion. Lee Zi Jun pointed out that 2025 was a challenging year for Hong Kong real estate credit, marked by several high-profile stress events. "However, the credit environment is showing signs of improvement. The maturity pressure for 2026 has significantly reduced to only about $2.6 billion, alleviating short-term refinancing pressures and providing developers with more breathing room. Even if sporadic defaults occur, the risk of widespread contagion remains low."