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| HSI1 | 23,446.34 | +110.06 | 257.13B |
| HSCEI1 | 7,773.67 | +14.31 | 71.88B |
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2026-06-22 11:22:50 Reignited concerns over potential US rate hikes sparked a recent correction in Hong Kong property stocks, BofA Securities noted in a research report. While the broker expected the market’s priced-in scenario of 1-2 rate hikes will not lead to a decline in Hong Kong property prices, it acknowledged that a more aggressive interest rate path would pose risks. Coupled with uncertainties arising from new outbound direct investment (ODI) regulations in mainland China and the feeble performance of the HSI, the broker expected primary residential sales momentum to slacken in 2H26, with property prices posting only mild growth. It slightly revised its 2027 Hong Kong property price growth forecast from a 5% hike to 0-5% growth. In terms of stock preferences, BofA Securities favored LINK REIT (00823.HK) among landlords (expecting share buybacks to resume soon) and SWIREPROPERTIES (01972.HK) and Hongkong Land (benefiting from rental growth in Central offices). Among developers, it preferred cash-rich CK ASSET (01113.HK) and SINO LAND (00083.HK). The broker maintained an Underperform rating on NEW WORLD DEV (00017.HK) (affected by high leverage) and MTR CORPORATION (00066.HK) (impacted by high capex). Details of the revised TPs and ratings for developers are as follows: CK ASSET (01113.HK) | Buy | HKD53.5 -> HKD53 HENDERSON LAND (00012.HK) | Buy | HKD34.4 -> HKD31.7 SHK PPT (00016.HK) | Neutral | HKD136 -> HKD122 SINO LAND (00083.HK) | Buy | HKD13.5 -> HKD12.2 NEW WORLD DEV (00017.HK) | Underperform | HKD5.2 -> HKD4.9 WHARF HOLDINGS (00004.HK) | Neutral | HKD26 -> HKD21 KERRY PPT (00683.HK) | Buy | HKD26.2 -> HKD23 ~ AASTOCKS Financial News Website: www.aastocks.com | |