[ET Net News Agency, 24 April 2018] Citi Research noted that HKD fell to the weak end
of its permitted band for the first time since the range was imposed in 2005. HKMA, which
is obligated to defend the band, have bought HK$51.3bn by selling US$6.54bn.
The purchases drove up HIBOR 1Mth to 0.97%.
Citi sees a negative correlation of property stock prices with rising HIBOR due to the
change in investors' risk appetitite. As equity investors turn to be more risk averse on
interest-rate sensitive stocks, there is no surprise to see widerning NAV discount on
property stocks.
Yet, it does not see any significant impact on the physical property market, based on
HKMA's sensitivity test on mortagage payment and solid demand in the physical market. Citi
reiterated its view that home price should continue on a strong rally in 1H 2018 while
developers will stay weak. (KL)
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01997 WHARF REIC
Nominal 
22.900 -0.100 (-0.435%) Others
24/04/2018 15:07
[I-bank focus]HK home price to rise, developers stay weak
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