Citigroup property prices rose 10% after the first half back

Hong Kong stocks outperformed A-shares this year. Cai Jinqiang, chief China strategist at Citigroup and real estate industry research firm in the Asia-Pacific region, believes Hong Kong stocks will still outperform A-shares next year. In terms of property market in Hong Kong, Tsai Chin-keung predicts that real estate prices will rise by 10% The second half of the callback 5%. Lei Zhi Yan, an economist at Citigroup, predicts HSI targets range between 28,000 points and 31,000 points next year.

Tsai Kin-keung bluntly: “A-share is another way to play, with a few political leaders and a melancholy top hat.” Coupled with the increasingly stringent market regulation, the upsurge of searching for investment opportunities for the North Water continued. He added that there are “giant technology stocks” and high-interest stocks that A-shares lack and believe that they will continue to attract mainland investors. Hong Kong stocks expect their earnings per share to rise 19% on average and A shares to 15% to 16% .

Mainland housing prices accounted for the new supply of 25%

In respect of the property market in Hong Kong, he estimates that the purchasing power brought by the strong performance of Hong Kong stocks will be released in the first half of next year, which will lead to an increase of 10% in property prices. As more units are supplied in the second half of the year and dragged down by the rate hike, 5% callback, real estate prices rose half year, I believe the supply and demand will be relatively stable throughout the year.

Tsai Kin-keung also mentioned that at present, the land tendering policy encourages more mainland developers to join the competition while local developers concentrate on the conversion of land use. In the meantime, it is believed that future land developers in the Mainland may thus increase their land bank in the core areas. At present, the residential supply in Hong Kong From about 24,000 to 25,000 units each year, he believes he will increase from 27,000 to 28,000 per year from 2019 to 2020 while mainland developers will provide about 20% of the units.