Urban development rose more than 6% in the early trading session

In the internal strife between the Guo father and son of the urban development broke out in February this year, Yang Lieguo has always been on the side of Executive Chairman Guo Lingming. At the annual shareholders' meeting held on April 23, Yang Lieguo also expressed his opposition to the appointment of the two new independent directors without reservation.

JP Morgan, an internationally renowned investment bank, believes that City Developments intends to actively repair its company's reputation and boost its stock price, raise its company rating and target price, and drive urban development to rise by more than 6% on Wednesday morning (July 16).

Urban Development rose nearly 2% at the opening on Wednesday, reaching a high of 5.95 yuan in the morning, up 6.8%. As of around 11:30, the stock price was 5.93 yuan, with the increase slightly narrowing to 6.46%.

JPMorgan Chase issued a report on Tuesday (15th), raising the urban development rating from "neutral" to "overweight" and the target price from 4.85 yuan to 6.85 yuan.

On the same day that JPMorgan issued the report, Urban Development disclosed that non-independent non-executive director Yang Lieguo will retire and will take effect on July 31.

JPMorgan believes that the appointment of two new independent directors, along with the re-election of three other independent directors, and Yang Lieguo's retirement, "means that the group president Guo Yizhi can now better streamline the business of urban development and reduce the discount on book value by selling non-core assets."

JPMorgan's report said: "We believe that although the road ahead may not be smooth, the willingness to repair reputation and stock prices should inspire urban development to be more proactive in executing plans to sell non-core assets and reduce debt ratios."