[Objective] The hydrological and ecological traits, and the water-holding characteristics of a forest after stand reconstruction were analyzed in order to provide a reference for ecological management, vegetation restoration, and tree species allocation in red soil erosion areas in Southern China. [Methods] This study was conducted at an Aleurites montana stand that was established after pine forest reconstruction in an erosion area of Changting County, Fujian Province. Differences in litterfall water retention indicators were compared between the A. montana stand and a grassy slope (CK). The soil physical properties of the 0—60 cm soil layer under the A. montana stand were measured, and the water retention performance of the stand was comprehensively evaluated by the subordinate function method. [Results] The water retention of the litter in the A. montana stand was always higher than that of CK, which was 1.15 times the value of CK before immersion and 2.10 times the value of CK after immersion for 24 hours. The water absorption rates of the litter in the A. montana stand and CK were 1 723.64 and 700.8 mm/h, respectively, after immersion for 0.25 h. The cumulative amount, maximum water-holding capacity, and effective storage amount of litter in the A. montana stand were significantly higher than those in CK. The soil bulk density of the 0—10 cm soil layer was significantly lower than that of other soil layers, while the maximum water-holding capacity, capillary water-holding capacity, field water-holding capacity, capillary porosity, and total porosity were significantly higher than those of other soil layers. The soil effective water storage and effective water reserve were significantly lower in the 0—20 cm layer than in the 20—60 cm layer. The comprehensive evaluation of the stand showed that the evaluation value of soil capillary porosity was higher, while that of soil natural moisture content was lower among all the indicators. [Conclusion] The A. montana stand had high water-holding capacity in the litter, as well as favorable aeration and water permeability characteristics in the soil. The comprehensive evaluation of the A. montana stand suggested that soil porosity, especially capillary porosity, played an important role in improving the water-holding performance of the stand.