Xiaomo: Lingzhan Real Estate Fund (00823) is expected to benefit from “Home Trust” and the target price is HK$43 for the “increase in holdings” rating

Zhitongcaijing · 2d ago

The Zhitong Finance App learned that J.P. Morgan Chase released a research report stating that it gave Lingzhan Real Estate Fund (00823) an “increase in holdings” rating, with a target price of HK$43. The Chief Executive of the Securities Regulatory Commission, Leung Fung-yee, revealed that the goal is to launch “REITs” (REITs) in the first half of next year. This is the first time since it was proposed in 2024 that an official specific schedule has been announced. The bank believes that although there is regulatory uncertainty, the official launch may be delayed, but at least there is a more clear timeline for now.

Motong pointed out that investors' expectations for FTS have been diluted due to long waits, and it is believed that the latest remarks by the Securities Regulatory Commission may revive market expectations. According to the current criteria for inclusion in Southbound Connect, that is, a constituent stock of the Hang Seng Composite Index, with an average market value of over HK$5 billion, Motong expects three Hong Kong-listed real estate trusts to be eligible, including Lingzhan, Zhifu Real Estate Trust (00778) and Guanjun Real Estate Trust (02778). The bank believes that since Lingzhan is the most liquid Hong Kong stock REIT, it will be the main beneficiary.