(Bloomberg) -- Gains in Chinese property shares may have gotten excessive as the sector faces weak month-to-date sales, placement risk and lockdowns, according to JPMorgan Chase & Co.

The shares and dollar bonds of builders rallied Thursday amid reports officials are stepping up efforts to arrest a housing slump. The CSI 300 Real Estate Index is up almost 20% from an August low on bets more easing measures will be rolled out at the twice-a-decade Party Congress next month.

“Despite the expectation on policy easing, we do not think this rally could last,” analysts including Karl Chan wrote in a note Friday. 

Read: China’s Home Prices Fall for One Year Straight as Crisis Deepens

JPMorgan’s cautious view is at odds with that of Nomura Holdings Inc., whose analysts including Jizhou Dong are turning bullish on expectations top-level property policies will outweigh a slow recovery in sales.

As for the shares of state-owned developers such as China Overseas Land & Investment Ltd. and China Resources Land Ltd., investors should wait for a better entry point to accumulate, the JPMorgan analysts wrote. Distressed names should be sold on any rebound, they wrote.

China’s home prices fell for a 12th month in August despite a flurry of measures to revive demand. A Bloomberg gauge of developer stocks fell as much as 1.1% on Friday after jumping almost 3% in the previous session.

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