J.P. Morgan predicts that the Chinese real estate market is approaching a turning point, which will drive the stock market to rise.

Rajiv Batra, a strategist at JPMorgan Chase in Singapore, said that the recovery in Hong Kong's property market is spreading to major cities in mainland China, while the wealth effect from the rebound in the Chinese stock market is beginning to show a lagged effect, helping to revive housing demand. "After a five-year slump, there are early signs of recovery in the Chinese real estate sector in March, and we may be approaching a turning point," Batra said. "We are relatively optimistic that China will outperform other emerging markets."