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<Research>JPM: HK Banks Expected to Continue to Cut Rates; Top Picks HENDERSON LAND/ SINO LAND Among Homebuilders
Recommend 18 Positive 29 Negative 12 |
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Following the US Fed's 0.25% interest rate cut, Hong Kong banks also followed by lowering the prime rate by 0.125%, JPMorgan released a research report saying. Of which, HSBC's new effective mortgage rate decreased from 3.5% to 3.375%. Although this appears lower than the gross rental yield of 3.6%, after accounting for management fees and other costs, the new mortgage rate will remain higher than the net rental yield of 3.1%. The broker anticipated that, as the Fed will implement further rate cuts in the future, Hong Kong banks will follow the rate cut pace. This will enable the Hong Kong property market to achieve genuine positive cash flow returns in 2026, supporting the base case forecast of 3-5% property price growth next year. However, the key factor remains the sustained strength of the HSI. JPMorgan maintained a positive outlook on Hong Kong properties, and suggested investors to buy on dips. Among developers, the broker's top picks are HENDERSON LAND (00012.HK) and SINO LAND (00083.HK). Among landlords, JPMorgan preferred SWIREPROPERTIES (01972.HK) and HANG LUNG PPT (00101.HK), followed by WHARF REIC (01997.HK) and LINK REIT (00823.HK). AASTOCKS Financial News Website: www.aastocks.com |
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