UBS: Positive view on local property developers in Hong Kong, optimistic about the aviation industry and high dividend stocks.

UBS Investment Bank Hong Kong strategist Chen Zhili said that the financial budget released by Hong Kong Financial Secretary Paul Chan Mo-po is a prudent one. The property value cap for stamp duty of 100 Hong Kong dollars has been raised from 3 million to 4 million Hong Kong dollars, which should boost the transaction volume of lower value properties. This is a positive sign for developers in the New Territories facing higher risks and smaller unit sizes, and UBS has a positive view on local property developers. As a strategy to enhance Hong Kong's long-term growth potential, the Hong Kong government continues to prioritize the development of the Northern Metropolis. Investment projects in the Northern Metropolis are growth points for Hong Kong, which could drive investment demand in the coming years. Chen Zhili mentioned that he favors the aviation industry and high dividend stocks. UBS Investment Bank's Senior Asian and Chinese Economist Tommy Tang noted that Hong Kong's fiscal situation is still relatively healthy compared to other Asian economies. Providing fiscal support in the face of challenges is still appropriate. Government debt issuance is an effective measure, with the overall government debt ratio currently about 15%, lower than other Asian economies, and there is still ample room for more debt issuance. Tommy Tang continues to expect the government to provide supportive policies for the housing market, and may introduce more measures if necessary.