HK Stock Market Move | Hong Kong property stocks rose, with SHK PPT (00016) rising more than 3% in intraday trading. Morgan Stanley predicts that Hong Kong residential prices will rise by 10% this year.

Hong Kong property stocks rose. As of the time of writing, SHK PPT (00016) rose by 2.54% to 101 Hong Kong dollars; SWIRE PROPERTIES (01972) rose by 1.71% to 21.42 Hong Kong dollars; HENDERSON LAND (00012) rose by 1.46% to 29.2 Hong Kong dollars; CK ASSET (01113) rose by 1.41% to 41.72 Hong Kong dollars. In terms of news, Morgan Stanley expects Hong Kong residential prices to rise by 10% this year due to increased demand from mainland buyers, inventory consumption, limited supply, and lower interest rates. In addition, inflow of talent is driving strong rental performance, meaning higher yields and positive interest rate differentials, stimulating more investment demand; the bank expects rents to increase by 5% this year. The wealth effect generated by the rise of the Hang Seng Index also helps support property prices. The bank has raised the target prices of several property stocks, with New World and Henderson Land being its top picks, with target prices raised from 105 Hong Kong dollars and 30 Hong Kong dollars to 120 Hong Kong dollars and 36 Hong Kong dollars respectively, all with a "buy" rating. Cheung Kong Property is also one of the bank's top picks, with its rating raised from "in line with the market" to "buy", and its target price raised from 39 Hong Kong dollars to 47 Hong Kong dollars.