Market Insight | Hong Kong Property Stocks Rise in the Morning, R&F PROPERTIES Surges Over 24% Expectations of Fiscal Measures Continuously Boost Rental Prospects

Hong Kong property stocks rose in the morning, as of the time of publication, R&F PROPERTIES rose by 24.55% to HKD 1.37; HANG LUNG PPT rose by 10.65% to HKD 7.48; NEW WORLD DEV rose by 4.62% to HKD 10.44; WHARF REIC rose by 4.14% to HKD 27.65. Credit Suisse released a research report stating that Hong Kong property stocks rose by 20% to 30% earlier due to the US interest rate cut. The bank pointed out that the current interest rate expectations have stabilized, and there have been improvements in China's macroeconomy and market sentiment. Although a better capital market may benefit Hong Kong property prices, a shift towards growth may limit the relative performance of Hong Kong property stocks. The bank further pointed out that recent stimulus policies introduced by the Chinese government, as well as the increasing expectations for fiscal measures to drive consumption, are boosting the prospects of Hong Kong-listed rental stocks with retail businesses in China. Morgan Stanley released a research report stating that Hong Kong has unique advantages benefiting from the decline in US interest rates and accelerated mainland economic growth. The Fed's expected rate cut is also at historically low valuation levels, providing sustainable and high dividend-paying prospects for Hong Kong property stocks. The bank expects Hong Kong property prices to rebound by 6% next year after a 8% decline this year