China property management companies provide management services to property owners, residents and property developers. The business model is least affected and less correlated to the economic downturn. Apart from the traditional property management services, including security and repair and maintenance services, they extended the service to new areas covering community value-added services, which comprising of community housekeeping and real estate agency services etc. The community value-added business has a higher potential for earning growth than the traditional property management. Several listed property management companies announced positive earing alerts lately, the net profits for the first half of this year are expected to increase from 50% to 90% for these companies due to the increase in area of properties under management as well as the comprehensive growth in revenue from community value-added services. In fact, the sector outperformed the Hang Seng Index year-to-date. As of the end of July, the sector up more than 40% in average, compared to the 10% increase of the gauge. We recommend the inclusion of property management companies, which providing defensive and growth potential nature, into the portfolio amid the risk of economic slowdown. The top picks are expected to be companies with asset injection potential from related developers.