Changes in Hong Kong stocks | Most rising Hong Kong real estate stocks say the decline in HIBOR can reduce real estate financing expenses, and real estate companies' profits are expected to increase

The Zhitong Finance App learned that most Hong Kong real estate stocks rose. As of press release, Henderson Land (00012) rose 5.3% to HK$23.85; Sun Hung Kai Properties (00016) rose 2.42% to HK$78.15; Wharf Group (00004) rose 1.55% to HK$19.7; and Swire Properties (01972) rose 1.2% to HK$16.86.

Komo released a research report saying that recently, the Hong Kong Interbank Offered Rate (HIBOR) has dropped sharply from about 4% to about 3.1%. From a fundamental point of view, it is expected to have a positive impact on real estate stocks. Due to the decline in borrowing costs, it is predicted that for every 1 percentage point annualized decrease in variable interest rate debt financing costs, real estate companies' profits can increase by an average of 5%. However, Xiaoma pointed out that unless HIBOR falls below 2.2%, it is not expected to have an impact on mortgage interest rates. He believes that HIBOR fluctuations are not the main factor affecting real estate stock price performance.

According to HSBC research, it is expected that Hong Kong real estate and integrated enterprises will continue to outperform the market compared to April this year. According to the bank, the main recent changes are related to the sharp decline in the Hong Kong Interbank Offered Rate (HIBOR). The one-month HIBOR plummeted from about 4% at the end of April to about 2.1% the previous day (May 8) (about 4.6% at the end of last year). If HIBOR remains low, it should reduce financing expenses in the real estate industry and improve dividend payout ratios. The bank said that due to the sharp drop in HIBOR, actual mortgage interest rates are expected to show a downward trend in the next few months, which will provide some support for property prices. The bank believes that although there are still uncertainties in the global macro environment, some users may rent and buy.