Hong Kong Stock Concept Tracking | Hong Kong Property Market Shows Signs of Recovery Boosting Capital Market Sentiment (Including Concept Stocks)

Wang Meifeng, Director and General Manager of Central Plains Mortgage, stated that according to data from the research department of Central Plains Mortgage, there were 6,463 registrations for mortgage loans for existing buildings in October, representing a 7.1% monthly increase. The property market continues to stabilize and improve, driving the number of registrations for existing building mortgages to exceed 6,000 for the third consecutive month. In October, there were 595 registrations for mortgage loans for apartments under construction (pre-sale), which is a 44% decrease compared to the previous month, mainly due to a decrease in the supply of large new projects in that month. GF Securities released a research report stating that the current warming of the Hong Kong property market is actually being driven by improvements in the funding environment and stronger economic expectations, leading to a wealth effect and a rise in risk appetite that will further boost sentiment in the capital markets, forming a resonance between stocks and property. Therefore, the stability of the property market will not only divert funds away from the Hong Kong stock market, but may actually create a positive cycle by promoting both stock and property assets through profit-making effects. The liquidity of the Hong Kong stock market is more influenced by global macroeconomic conditions and the economic fundamentals of mainland China, rather than the property market being the main influencing factor. Citibank's report indicates optimism for the Hong Kong real estate market, predicting a recovery in 2026 after hitting a low in 2025, for the following reasons: - House prices are entering an upward cycle: improving new sales profit margins and increasing net asset values; - Retail sales: luxury goods are outperforming the market, mass market has stabilized since May 2025 and is expected to recover steadily from the second half of 2026; - Offices: competition is expected to intensify after reaching a record high in completed projects in 2025, but Grade A offices in core areas are performing steadily; - Listed companies becoming more streamlined: Active capital recycling, reduced debt, lower capital expenditures and financing costs are expected to provide cash flow support for growth under stable dividends; increase in investment willingness; smooth transition of chairman/CEO and some new strategies. Citibank forecasts a 3% increase in residential prices in 2026, entering a multi-year upward cycle. Hong Kong property-related stocks include WHARF REIC (01997), HYSAN DEV (00014), HANG LUNG PPT (00101), SHK PPT (00016), HENDERSON LAND (00012), LINK REIT (00823), etc.