Changes in Hong Kong stocks | Most Hong Kong real estate stocks are under pressure, and Walsh boosts expectations of interest rate hikes in September, Hong Kong property prices show initial signs of recovery

The Zhitong Finance App learned that Hong Kong real estate stocks were mostly under pressure. As of press release, Henderson Land (00012) fell 6.76% to HK$27.02; Sun Hung Kai Properties (00016) fell 5% to HK$115.8; Hang Lung Properties (00101) fell 3.45% to HK$6.995; and Swire Properties (01972) was 2.2% to HK$23.98.

According to the news, Federal Reserve Chairman Walsh Jackson Hole made his debut and spoke for Jackson Hole, the biggest hawk since 2009, implying that interest rates will be raised if inflation does not fall quickly. The probability of an interest rate hike in September will rise from 35% to nearly 60%, or two interest rate hikes before March 2027. It is worth noting that on August 27, the latest relevant data released by the Rating and Property Valuation Department of the Hong Kong Special Administrative Region Government showed that in July, the local private residential sales price index was 321.5 points, down 0.46% month-on-month, ending the previous 13-month upward trend.

The July data recently released by the Land Registry of the Hong Kong Special Administrative Region Government also showed that 6,715 local property sales contracts were recorded, a significant decrease of 28.8% month-on-month; of these, residential property sales plummeted by 41.7% to 4,462, and the total contract value dropped by 44.6% month-on-month to HK$41.9 billion. Bank of America Securities believes that expectations of US interest rate hikes are heating up, and Hong Kong property prices are showing initial signs of softening. They are expected to face pressure in the short term after rising 8% in the first half of the year, but it is expected that there will be no major change in trend, and tenacious rental demand limits the downside of the property market.