HK Stock Market Move | Most Hong Kong property stocks under pressure as hawkish Fed rate hike lands; property sector may face short-term valuation pressure.

Hong Kong property stocks came under pressure. As of press time, HANG LUNG PPT (00101) fell 3.04% to HK$6.53; SHK PPT (00016) dropped 2.37% to HK$107; HENDERSON LAND (00012) declined 2% to HK$25.42; SWIREPROPERTIES (01972) slipped 1.92% to HK$23.54. On the news front, the Federal Reserve announced a 25-basis-point rate hike, and the Hong Kong Monetary Authority subsequently raised its base rate by 25 basis points to 4.25%. The latest dot plot shows one more rate hike this year. Warsh stated that financial conditions are not restrictive, and that removing some easing measures would allow financial and credit conditions to better align with the ultimate goals. Citi said Hong Kong's property sector will face short-term valuation pressure from the U.S. interest rate outlook, which could push up investors' required rate of return, but the impact on fundamentals is limited. The bank remains constructive on its 2027 home price forecast, but after a 12% gain so far this year, it expects the market to enter a consolidation phase for the remainder of the year.