[I-bank focus]HK residential price growth peaks - Morgan

   Morgan Stanley said HK property prices are up 10% this year as expectation of rate hike did not materialize - HIBOR has remained 80 bps lower than LIBOR.
  Availability of developers' mortgages and 4-5% wage growth has kept affordability in check. This coupled with higher than expected GDP growth (4% in 1H), low unemployment rate, and rising stock market (HSI up 27% year-to-date) could mean that property prices could remain elevated, said the research house.
  However, Morgan expects the growth to moderate to 0% by end-2018, assuming no price movement from here. It noted a strong correlation between Centaline's Centa-City Leading Index (CCL) YoY growth and the Hang Seng Properties Index (HSP) YoY, suggesting downside to property stocks, especially developers.
  Even in the most bullish scenario - a 5% increase in the CCL in 2H and +10% in 2018 - the research house sees HSP remaining flattish. It said The CCL's YoY growth peaked at 24% in June 2017 and slowed to 17% in September. Morgan expects it to slow down further, putting pressure on stock performance. However, exposure to HK farmland and Chinese land bank should help.