Property prices in Hong Kong continue to approach historic highs. Among them, the property price index of the Budget Property Valuation Authority has risen above the all-time high, and it is only a matter of time before the Central Plains Index hits a new high. However, at present, market participants are generally negative about Hong Kong property prices. Among them, Shi Yongqing, founder of Central Plains Real Estate, expects that Hong Kong property prices may record an 8-13% drop within this year. Credit Suisse, a major bank, believes that mainland property prices in Hong Kong will drop 10% this year. The decline in property prices is only one of the issues that the market is concerned about; the other issue is whether the government will remove the property market regulation measures. Credit Suisse believes that with the decline in property market transactions, it believes the government will not make further moves for the time being. The bank also believes that the leasehold shares will perform well. The investment ratings of Hysan Industrial (00014-HK) and Kowloon Cang Group (00004-HK) have been upgraded to “outperform the market” and “neutral” respectively. The target prices are $40.4 and $56.1 respectively. As for real estate developers, Credit Suisse is optimistic about Sun Hung Kai Properties (00016-HK) and raised its investment rating to “outperform the market”, raising the target price from 119.9 to 120.8 yuan; however, it also lowered the investment rating of Changshi Real Estate (01113-HK) to “neutral”, and the target price dropped from $66.6 to $56.4.