JPMorgan has issued a research report stating that HANG LUNG PPT's (00101) mainland tenant sales showed significant improvement in the third quarter, rising 10% year-on-year, which exceeded the bank's expectation of low single-digit growth and reversed the 1% decline from the second quarter.

Given its dividend yield of 5.9% and the improvement in mainland tenant sales data, JPMorgan continues to list Hang Lung as one of its two preferred property stocks, maintaining an "Overweight" rating with a target price of HK$10.

HANG LUNG PPT also noted that its shopping malls continued to deliver strong performance during the National Day Golden Week, with tenant sales increasing 15% year-on-year during the first four days of the holiday period.

With Shanghai Hang Lung Plaza introducing new tenants such as LAOPU GOLD (06181) and the expansion of existing tenants, JPMorgan expects Hang Lung's tenant sales improvement trend to continue into the fourth quarter.

The bank's other preferred stock is SWIREPROPERTIES (01972), which is expected to similarly benefit from China's retail market recovery.