HOLD TravelSky Technology Closing price: $7.60 Target price: $8 Share price performance (%) 1wk: 9.52 3mths:21.89 1mth:14.38 1yr: 74.86 Analyst Belinda Chan has lowered her recommendation from a 'buy' to 'hold', saying the present valuation has priced in the rapid future growth profile of the mainland air travel market despite the company providing excellent long-term proxy to air travel in China. Rather, Ms Chan believes Asia-Pacific aviation equities such as China Southern Airlines provide better investment value. Ms Chan has a 'buy' call on China Southern with a target of $3.30. ING Financial Markets BUY Kerry Properties Closing price: $9.70 Target price: $12 Share price performance (%) 1wk: 3.96 3mths:2.7 1mth:11.62 1yr: 57.02 In anticipation of improving luxury housing rents and the increasing contribution from its China property developments, the recommendation on Kerry Properties was upgraded to 'overweight' from 'underweight'. Analyst Anthony Wu said luxury residential rents were set to pick up by 5 per cent next year and 10 per cent in 2005 on increasing signs of global economic recovery and the support of Beijing for Hong Kong. Lehman Brothers HOLD CNPC (Hong Kong) Closing price: $1.06 Target price: $1.15 Share price performance (%) 1wk: 5.35 3mths:37.17 1mth:22.98 1yr: 101.88 The mainland oil play was downgraded to a 'hold' from 'buy' on its recent strong performance, boosted by rising commodity prices, share buy-backs and dividend payment. The rally was also fuelled by speculation CNPC would be injected with some international assets by its parent, although analyst Thomas Hilboldt cautioned against building over-optimistic expectations on the benefits to CNPC of such deals with its parent. Citigroup Smith Barney