UBS: Remove CK Asset (01113) and Hang Seng Bank (00011) from the most bearish list.

UBS released a research report stating that its real estate team previously upgraded the investment rating of CK ASSET (01113) from "neutral" to "buy", stating that it is the most undervalued among the real estate stocks covered by the bank. The bank also removed CHEUNG KONG and HANG SENG BANK (00011) from its most bearish list. UBS's current top picks include HENDERSON LAND (00012), SHK PPT (00016), LINK REIT (00823), WYNN MACAU (01128), GALAXY ENT (00027) and CATHAY PAC AIR (00293), all rated "buy"; while MTR CORPORATION (00066) is rated "sell". The bank expects potential positive catalysts for CHEUNG KONG include potential value release for distressed commercial real estate (CRE) assets in Hong Kong, continued improvement in profitability of Hong Kong hotels, potential opportunities to convert hotels into student dormitories due to the structural growth trend of non-local student enrollments, disposal of UK railway assets, and higher foreign exchange gains after the Fed rate cut. On the other hand, HSBC HOLDINGS (00005) proposed privatizing HANG SENG BANK, offering a price equivalent to a price to book ratio of 1.8 times in the first half of the year, with a valuation premium of thirty percent.