HK Stock Market Move | Inflation concerns weigh on Hong Kong property stocks as WHARF REIC (01997) and SINO LAND (00083) both drop over 4%.

Hong Kong property stocks generally fell, as of press time, WHARF REIC (01997) dropped 4.54% to HKD 24.82, SINO LAND (00083) dropped 4.07% to HKD 11.08, HENDERSON LAND (00012) dropped 3.54% to HKD 31.02, and CHEUNG KONG PROPERTY (01113) dropped 3.12% to HKD 46. On the news front, recently, the rise in oil prices strengthened inflation expectations, prompting the market to reassess the Federal Reserve's policy path. According to a Morgan Stanley research report, concerns have arisen recently about the possibility of inflation or geopolitical events leading to a downward valuation of the Hong Kong property sector. The bank's basic assumption is that interest rates will remain unchanged in the next four quarters, and property buyers currently enjoy a slight positive interest rate differential, expecting the sector to withstand an environment of unchanged interest rates. Additionally, the bank believes that while the expectation of rate hikes may lead to short-term profit taking, historical data shows that rate hikes do not necessarily lead to a decline in stock or property prices.