HK Stock Market Move | Hong Kong property stocks rose modestly. The impact of the increase in stamp duty on residential properties in the financial budget is limited. Institutions expect that the property market policy stance will remain favorable.

Hong Kong property stocks rose mildly as of the time of writing, with SHK PPT (00016) up 2.49% at HK$139.8, CK ASSET (01113) up 1.93% at HK$47.56, HENDERSON LAND (00012) up 0.58% at HK$34.78, and WHARF REIC (01997) up 0.54% at HK$26.22. On the news front, on February 25th, Hong Kong Financial Secretary Paul Chan Mo-po announced in the latest "Budget" at the Legislative Council of Hong Kong that the stamp duty rate for residential property transactions over 100 million Hong Kong dollars will be increased from 4.25% to 6.5%, affecting approximately 0.3% of residential property transactions and estimated to increase revenue by about 1 billion Hong Kong dollars per year. The measure will come into effect the day after the revised bill is passed. According to HSBC research, following the announcement by the Hong Kong SAR government to raise the stamp duty on residential properties worth over 100 million Hong Kong dollars from 4.25% to 6.5%, the share prices of some developers fell by about 2% yesterday (25th). The bank believes that the price correction is healthy considering the strong rally in the sector since the beginning of the year. The impact of this measure is expected to be limited, as it only accounts for 0.3% of the total market turnover. The intention of this move is likely to increase fiscal revenue rather than suppress the overall residential market. The bank expects that the Hong Kong property market policy stance will continue to be favorable to the real estate market; real estate investment trusts may see new opportunities. Among local Hong Kong property stocks, the bank prefers New World, Henderson Land, and Sunlight REIT, all rated "buy".