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<Research>HSBC Research: Policy Address Expected to Quicken Home Mkt Stabilization Pace; SHKP, KERRY May Benefit More
Recommend 13 Positive 25 Negative 6 |
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The latest Policy Address tabled a series of measures to support and stabilize the property market, among which, the most notable one is the relaxation of the maximum loan to value (LTV) ratio for residential properties, according to a research report released by HSBC Global Research. In other words, the countercyclical measures for mortgages will be restored to the level prior to 2009. It is expected that these measures will help accelerate the stabilization process of the property market. Moreover, the Hong Kong government announced that it will enhance the New Capital Investment Entrant Scheme to allow investment in residential properties, provided that the transaction price of the property is $50 million or above. HSBC Global Research expected that this will buoy up the luxury property market, and developers such as KERRY PPT (00683.HK) and SHK PPT (00016.HK) are likely to benefit more. The broker gave a Buy rating to each of the two stocks, with target prices of $19.6 and $116 respectively. HSBC Global Research last predicted that property prices of Hong Kong will rebound by 5% this year, reversing the downtrend since 2022. It was also positive about the Hong Kong real estate industry, believing that developers will benefit from policy support and the interest rate cycle. Chief Executive John Lee said that he had requested the Chinese central government to further optimize the travel permit system for mainland residents visiting Hong Kong, including resuming multiple-entry permits for Shenzhen and expanding the scope of cities participating in the “one trip per week” pilot scheme. The broker believes that if these measures are implemented, they will stabilize Hong Kong's retail market, and shopping mall operators will also benefit as a result. The broker rated SWIREPROPERTIES (01972.HK) and CK ASSET (01113.HK) at Buy, with target prices of $20.7 and $44.6 respectively. AAStocks Financial News |
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