UBS: Upgrades Champion REIT (02778.HK) rating to "Buy", target price raised to HK$2.4

Zhitong Finance APP has learned that UBS issued a research report stating that it has upgraded the investment rating of Champion REIT (02778.HK) from "Neutral" to "Buy", and raised the target price by 4.3% from HK$2.3 to HK$2.4. The bank believes that, given Champion REIT's small market capitalization and limited trading liquidity, the market has been underestimating its potential as a beneficiary of the recovery in the Central office market. As the vacancy rate of Grade A office buildings in Central drops below 8%, the bank expects that the implementation of the "carried interest" tax reform, namely the proposal to impose a zero tax rate on performance-linked bonuses for hedge fund and alternative asset management professionals, will further stimulate asset management companies' demand for office leasing in Central.