Hong Kong stocks closed (09.05) | Hang Seng Index fell 0.07%, insurance and real estate stocks rose, petroleum stocks fell again.
In the early morning of Hong Kong stock, it surged and then fell back, and then it continued to fluctuate weakly throughout the day. The Hang Seng Index and the China Enterprises Index both experienced four consecutive declines, while the Hang Seng Tech Index slightly gained.
Citi: Property stocks benefit from rental flexibility and rate cut expectations. Henderson Land (00012) is the top choice.
Citi's top stock picks in the industry are Henderson Land (00012), Swire Properties (01972), and Link Real Estate Investment Trust (00823).
According to Citi's rating, hong kong property stocks benefit from rental elasticity and rate cut expectations. Swire Properties, Hongkong Land and Link REIT are the top choices.
Citigroup's report states that it has a positive view on the rental income of Hong Kong property developers, as it expects the Federal Reserve to cut interest rates at its September monetary policy meeting. The market has received positive feedback because rental income has shown more elasticity than expected, supporting cash inflow. Another factor is that the number of people traveling to Shenzhen/China from Hong Kong remains stable at around 0.55 million per weekend (a 12% decline after the summer vacation from August 31 to September 1). Overall retail sales decline is narrowing, especially for non-essential items. Luxury goods retail integration is still ongoing. Lastly, as housing rental prices rise, the negative interest rate differential is narrowing (currently at a yield of 3.3% to 3.4%).
Hong Kong property stocks generally rise as interest rate expectations rise again. Credit Suisse expects Hong Kong residential property prices to rebound by 5% next year.
Hong Kong property stocks are generally rising, as of the time of writing, Wharf REIC (01997) is up 3.71% to HK$22.35; Link Real Estate Investment Trust (00823) is up 3.34% to HK$37.1.
Hong Kong property stocks surged, Wharf REIC (01997) rose nearly 6%, interest rate cuts boosted trading of new properties.
Most Hong Kong property stocks are rising. As of the time of writing, Wharf REIC (01997) is up 5.94% at HKD 22.3, while New World Dev (00017) is up 4.52% at HKD 7.63.
Link Real Estate Investment Trust (00823) issued 22.8003 million new fund units on August 13.
Link Real Estate Investment Trust (00823) announced that the company, as of the end of the fiscal year ending on March 31, 2024 ...
