HK Stock Market Move | LINK REIT (00823) rose nearly 4% in the afternoon as expectations of REIT inclusion in Stock Connect resurface; JP Morgan says Link REIT stands to benefit the most.

LINK REIT (00823) rose nearly 4% in the afternoon. As of press time, it was up 3.63% at HK$39.4, with turnover of HK$462 million. On the news front, on October 12, HKEX Group Chief Executive Bonnie Chan published a new CEO blog post, disclosing multiple market infrastructure reform plans for HKEX, including: ongoing preparatory work with mainland partners to include real estate investment trusts (REITs) in Stock Connect and to include RMB stock counters in Southbound Stock Connect. In addition, SFC Chief Executive Julia Leung recently revealed that the target is to launch "REITs Connect" in the first half of next year, the first time an official specific timetable has been published since it was proposed in 2024. JP Morgan noted that investor expectations for REITs Connect have faded due to the long wait, and believes the SFC's latest remarks may rekindle market expectations. Under the current Southbound Stock Connect inclusion criteria, namely Hang Seng Composite Index constituents with an average market capitalization of more than HK$5 billion, JP Morgan expects that three Hong Kong-listed REITs currently qualify, and since Link REIT is the most liquid Hong Kong-listed REIT, it will be the main beneficiary.