Market Insight | New World Development surged over 5% in the afternoon, the company will release annual performance by the end of the month. Morgan Stanley predicts that the interest rate cut will drive a rebound in property prices
NEW WORLD DEV surged more than 5% in the afternoon, up 4.82% as of the time of publication, at HKD 6.74, with a turnover of HKD 25.3493 million. On the news front, NEW WORLD DEV announced that it plans to hold a board meeting on September 26 to approve its annual performance. CICC previously pointed out that NEW WORLD DEV has disclosed the latest financial situation for the 2024 fiscal year, made preliminary estimates on annual profits and some provisions, and is expected to achieve a core operating surplus of HKD 6.5 billion to 6.9 billion. Morgan Stanley predicts that the 1-month Hong Kong Interbank Offered Rate (HIBOR) will drop to 2.75% next year, and the actual mortgage rate under the most favorable rate (P-1.75%) will drop to 3.25%. The bank believes that compared to retail and office buildings, Hong Kong's residential market will benefit more from the US interest rate cuts. It is expected that Hong Kong residential prices will rebound by 5% next year, after falling by 8% this year, which is a 30% drop from the peak. The bank estimates that for every 100 basis points decrease in HIBOR, the average profit of Hong Kong property developers will increase by 5%
According to the Intelligence Finance app, New World Development (00017) surged more than 5% in the afternoon, up 4.82% as of the time of publication, at HKD 6.74, with a turnover of HKD 25.3493 million.
On the news front, New World Development announced that it plans to hold a board meeting on September 26 to approve its annual performance. CICC International previously pointed out that New World Development has disclosed the latest situation of its financial position for the 2024 fiscal year, made preliminary estimates on annual profits and some provisions, and is expected to achieve a core operating surplus of HKD 6.5 billion to 6.9 billion.
Morgan Stanley predicts that the Hong Kong Interbank Offered Rate (HIBOR) for the next month will drop to 2.75% next year, and the actual mortgage rate under the most favorable rate (P-1.75%) will drop to 3.25%. The bank believes that compared to retail and office buildings, the residential market in Hong Kong will benefit more from the U.S. rate cuts. It is expected that residential property prices in Hong Kong will rebound by 5% next year, after falling by 8% this year, which is a 30% drop from the peak. The bank estimates that for every 100 basis points decrease in HIBOR, the average profit of Hong Kong property developers will increase by 5%