00066 Overview

2026-27 Budget Announcement: Financial Secretary Paul Chan presented the 2026-27 Budget, emphasizing the government's ongoing fiscal consolidation efforts and the management of specific purpose funds.

Revenue-Generating Measures Suggested: Kenny Shui from Our Hong Kong Foundation advocated for exploring 'painless revenue-generating' strategies, including selling government assets like MTR CORPORATION shares and leasing naming rights for facilities.

Projected Revenue Increase: The proposed measures are expected to generate over $40 billion, which would help diversify the government's income sources.

Market Insights: The article also mentions a forecast by G Sachs, predicting a 12% growth in home prices for 2026 and upgrading certain real estate stocks to a "Buy" rating.

Market Performance: The Hang Seng Index (HSI) rose by 199 points (0.8%) to 26,789, while the Hang Seng Tech Index (HSTI) and the Hang Seng China Enterprises Index (HSCEI) also saw gains of 17 points (0.3%) and 81 points (0.9%) respectively.

Active Heavyweights: Notable stocks included Meituan, Ping An, Tencent, and Alibaba, all experiencing increases in their share prices, with Meituan leading at a 2.3% rise.

Top Gainers: Among HSI and HSCEI constituents, Haidilao and Longfor showed significant gains of 5.8% and 4.6% respectively, while Xinyi Solar was the only notable loser, dropping by 3.0%.

Short Selling Activity: High short selling ratios were observed in several stocks, with Ping An and China Resources Land having ratios of 35.649% and 40.187% respectively, indicating significant market speculation.

Market Performance: The Hang Seng Index (HSI) fell by 491 points (1.8%) to close at 26,590, with significant declines also seen in the HSTI and HSCEI, which dropped 114 points (2.1%) and 189 points (2.1%) respectively, amid a market turnover of $250.99 billion.

Active Heavyweights: Major stocks like Meituan, Ping An, Tencent, Alibaba, and Xiaomi experienced notable declines, with Meituan down 4.2% and Tencent down 3.3%, reflecting a trend of short selling across these companies.

Constituents on the Move: Several constituents saw significant price changes, including Sino Biopharma and Hansoh Pharma, which dropped 6.6% and 6.4% respectively, while WH Group rose by 4.4%, reaching a new high.

Other Notable Stocks: Stocks such as MIRXES-B and CTG Duty-Free faced substantial losses, with MIRXES-B down 21.7%, while KB Laminates and CNBM saw gains of 12.4% and 10.5%, respectively, also hitting new highs.

CK Asset and MTR Corporation Project Update: CK Asset and MTR Corporation have received consent for their joint project, Phase 3B of The Southside at Wong Chuk Hang Station, known as Blue Coast, with sales strategies to be announced soon.

Recent Sales Performance: A four-bedroom unit in Phase 3C of Blue Coast II was sold for HKD34.272 million, and since launching in April 2024, 571 out of 642 units have been sold, totaling over HKD10.8 billion in sales.

Homebuilders Performance: Henderson Land and Sino Land showed positive stock movements, while New World Development experienced a slight decline; ratings varied from "Sell" to "Neutral" and "Buy."

Landlords Overview: Wharf Holdings and Wharf REIC faced declines, while Hang Lung Properties and Swire Properties saw gains; ratings ranged from "Sell" to "Buy."

Conglomerates Update: Swire Pacific A had a positive performance, while MTR Corporation and CKI Holdings experienced declines; ratings included "Neutral" and "Sell."

Short Selling Insights: Significant short selling activity was noted across various companies, with ratios indicating varying levels of investor sentiment and market confidence.

Goldman Sachs Home Price Forecast: Goldman Sachs has raised its 2026 home price increase forecast from 5% to 12%, citing anticipated boosts in demand from government visa and immigration policies, along with strong rental growth and lower mortgage rates encouraging a shift from renting to buying.

Stock Upgrades and Downgrades: The firm upgraded HENDERSON LAND and SINO LAND from Sell to Buy, while maintaining a Buy rating for SHK PPT with a significantly raised target price. Conversely, it downgraded CK ASSET from Buy to Neutral and WHARF REIC from Buy to Sell due to various market exposures and challenges.

Impact of Policy Changes: The removal of cooling measures at the start of FY2024 has reduced trading costs, potentially stimulating investment demand, with future government policies expected to support population and income growth, enhancing housing affordability.

Market Inventory and New Projects: The unit inventory from the upgraded companies represents about 36% of the overall market, with several new projects in progress, indicating a positive outlook for the Hong Kong residential market.