Citi: It is not surprising that Shanghai's property market relaxes housing restrictions, with CR Land, CR Town and China Jinmao being the preferred choices.

J.P. Morgan released a research report stating that Shanghai has introduced a new round of favorable housing policies, including relaxing purchase restrictions for non-local residents, shortening the required social security/tax proof from 3 years to 1 year in outer-ring areas, allowing residents in outer-ring areas holding tax certificates for 3 years to purchase an additional unit, and so on. J.P. Morgan believes that the measures are not surprising, and the relaxation in Shanghai is stronger than the similar measures taken by Beijing in December last year, and they expect the transaction volume and prices in Shanghai to stabilize in the next one to two months. However, J.P. Morgan does not believe that the real estate market can sustainably recover solely based on this policy; the next city to relax restrictions will be Shenzhen. The property sector has risen by 16% since the beginning of the year, and looking ahead for the next two months, J.P. Morgan expects the sector to continue to fluctuate, maintaining resilience until the political meeting at the end of April, which is the next policy window. J.P. Morgan's top stock picks are China Resources Land, China Resources Mixc Lifestyle, and China Jinmao, but they believe that China's overseas development is expected to catch up as it has been lagging behind in performance.