Mainland Capital Flows Drive 91% Surge in Hong Kong Property Purchases, Morgan Stanley Favors CK Asset

Stock News03-12

According to a research report from Morgan Stanley, mainland buyers acquired 2,600 residential units in Hong Kong during the first two months of the year, marking a 91% increase compared to the same period last year. The total transaction value reached HKD 28.2 billion, up 136% year-on-year. The bank attributes this growth primarily to a stronger renminbi, attractive rental yields, positive gross carry, and a faster-than-expected recovery in property prices. Morgan Stanley also noted that developments in the Middle East could enhance Hong Kong's status as a financial hub, with its stability and low-tax regime potentially attracting capital and talent inflows, which would benefit the local property market. The firm maintains an optimistic outlook on Hong Kong's residential sector, selecting CK Asset (01113) as its top pick with an "overweight" rating. It also expressed a preference for SHK PPT (00016) over HENDERSON LAND (00012), assigning "overweight" and "equal-weight" ratings, respectively.

Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

Comments

We need your insight to fill this gap
Leave a comment