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2026-08-27 16:34:19 Morgan Stanley published a research report stating that the National Development and Reform Commission released draft revisions to the "Measures for the Administration of Overseas Investment" last Friday (21st), with public consultation open until Sep 20. The draft revisions supplement State Council Decree No. 837, which took effect on Jul 1. The key change is the expansion of the scope to include individual residents. As real estate has historically been classified as a sensitive sector requiring approval, purchases of residential properties in Hong Kong by Mainland residents may fall under regulatory oversight. The bank said further clarification is still needed regarding enforcement mechanisms, investment caps and treatment of owner-occupied properties. Sentiment in Hong Kong's residential property market may remain weak in the short term. Despite strong recent sales of new residential projects in Hong Kong, transaction volume in 3Q26 is expected to remain at low levels, similar to Jul. The bank downgraded SHK PPT (00016.HK) in Jul and prefers landlords over property developers. M Stanley said that although the draft revisions clearly state that existing regulated financial market channels are generally excluded, there have been no revisions or suspensions at this stage regarding financing channels for Mainland buyers. Many Mainland buyers already possess sufficient offshore funds when purchasing properties in Hong Kong, such as funds deposited in Hong Kong. M Stanley expects purchases of residential properties for self-use are unlikely to be regarded as restricted investments in the medium term. Hong Kong residential property prices have risen 12.5% year to date, in line with the bank's forecast for a 12% increase for the full year. The bank expects property prices to maintain these gains for the remainder of the year and does not expect prices to decline. For 2H26, the bank prefers landlords over property developers, with SWIREPROPERTIES (01972.HK), WHARF REIC (01997.HK) and Hongkong Land as top picks, all rated Overweight. The bank is optimistic about their benefits from a steady recovery in retail and office sectors, continued capital recycling and higher dividend yields. (ad/da)~ AASTOCKS Financial News Website: www.aastocks.com This article was automatically translated by AI, the Chinese version should be considered the authoritative version. AASTOCKS.com Limited does not guarantee its accuracy or completeness and accepts no liability for any damages or losses arising from the use of this translation. | |