HK Stock Market Move | Hong Kong property stocks saw their gains increase at the close of trading session, with WHARF REIC (01997) rising more than 4%. Alibaba acquisition sets new record for commercial property transactions in Hong Kong this year.

Hong Kong property stocks rose at the end of the day, as of press time, WHARF REIC (01997) rose by 4.36% to 22.48 Hong Kong dollars; HYSAN DEV (00014) rose by 3.01% to 16.09 Hong Kong dollars; SWIREPROPERTIES (01972) rose by 2.14% to 21.92 Hong Kong dollars; NEW WORLD DEV (00017) rose by 1.36% to 7.43 Hong Kong dollars. On the news front, on October 17th, Alibaba Group and Ant Group announced a 6.6 billion yuan investment in the purchase of the 13th floor of the Wanchai Hong Kong Island Center by Oriental Group, as the headquarters of the two companies in Hong Kong. It is worth noting that this transaction broke the record set by the Hong Kong Stock Exchange in March this year when it acquired the 9th floor office building of the Central Exchange Square Phase I for HK$6.3 billion, making it the largest transaction in Hong Kong this year. JPMorgan released a research report stating that this large transaction will help stabilize the capitalization rate of Hong Kong office buildings and reduce commercial real estate risks to a certain extent. The bank believes that more leading companies from the mainland may be interested in purchasing office properties in Hong Kong as their regional or non-mainland headquarters. The bank believes that the stabilization of Hong Kong's office capitalization rate will benefit Hong Kong Land and SWIREPROPERTIES. However, JP Morgan stated that this transaction will impact WHARF REIC, as Alibaba is likely to move out of Times Square.