Wang Zhenyu, head of Asian real estate research at UBS, issued a report that it is expected that it will be difficult for real estate stocks to outperform the market in the short term, but still recommends buying property stocks with relatively low valuations, including increased holdings of SOHO China (00410-HK), R & F Real Estate (02777-HK) and New World Development (00017-HK).
UBS reported that overall real estate stocks rose 14% in September, of which local real estate stocks rose 21%, rent collection stocks rose 11%, but internal housing stocks fell 1%. The bank expects a weak trend in the real estate sector in October, mainly due to the launch of a large number of new and large new shares in October, which led to a rise in Hong Kong interbank interest rates, with three-month interest rates rising from 0.25% in early September to 0.34% now. In addition, the Lianlian Reserve Bureau has launched the second phase of quantitative easing (QEII), but the news has been reflected in the stock price.
With regard to the view of the local property market, UBS expects that the Government will no longer introduce policies to tighten the property market, and that it will launch plans to help the poor and help people get on the bus to buy property, so it is believed that it will be beneficial to the property market in the short term.
As a result, UBS reported that it maintained its holdings of property stocks with relatively flat valuations, including SOHO China (00410-HK), R & F property (02777-HK) and New World Development (00017-HK).
Share name / investment rating / target price
SOHO China (00410-HK) / buy / 6.74RMB.
R & F Real Estate (02777-HK) / Neutral / 12.17RMB.
New World Development (00017-HK) / Buy / 21 yuan.
Sun Hung Kai Properties (00016-HK) / buy / 171.7 yuan.
Henderson Land Development (00012-HK) / Buy / 83.9RMB.
00019-HK / buy / 121.3 yuan.
Agile (03383-HK) / Buy / 11.76RMB.
Hang Lung Properties (00101-HK) / Buy / 37.7RMB.
Hesheng Creative Exhibition (00754-HK) / sell / 8.3RMB.
Wharf (00004-HK) / buy / 60.40 yuan.