Gronway June 30丨Furui published a research report stating that due to rising interest rate expectations and a slump in the housing market, Hong Kong's real estate stocks have gradually declined by 5% to 19% since May 8. The bank maintains a positive view of Hong Kong's real estate stocks. Among them, it favors retail rental stocks such as Lingzhan (0823.HK) and Jiuzhi (1997.HK), followed by residences, followed by office buildings. The bank expects that although Hong Kong residences still face adverse factors such as high optimal interest rates and a backlog of supply in the second half of this year, Hong Kong property prices are expected to recover next year due to the normalization of interest rates and the prospect of population inflows to support housing demand. Furthermore, the bank lowered developers' profit forecasts across the board, believing that there is a downside risk, but recent weakness provides an opportunity to collect high-quality brands, and the bank is optimistic about the new location (0016.HK). As for the privatization of New Creation (0659.HK), it is expected to strengthen the cash flow of New World (0017.HK), but the impact on debt ratios is limited, and it has a potential downside impact on future profits, maintaining a “holding” rating. Furthermore, the bank believes that although the number of mainland tourists has stagnated, retail sales of luxury retailers have recovered to a level similar to 2018. The bank expects Hong Kong retail sales data for May to be a positive catalyst for the industry (under the favorable days of Labor Day, it may increase by 20% to 25%. The bank lowered its profit forecast before the disclosure of Jiuji's results, mainly due to rising interest expenses, but it is still optimistic about Jiuji, and the industry preferred the leader.