28/6/2017-5

China Merchants this year, property prices rose 8% worries reversed

Hong Kong property market without fear of hot strokes continued to break, but there are bank warnings to guard against the property market to adjust the risk. BOC Hong Kong refers to the current increase in property prices, if the external or financial market fluctuations, are likely to trigger the property market reversal.

Hong Kong property prices continue to rise in April, private residential property prices for six consecutive months of high marks this year has risen 6.5%.

Low interest rate continued lack of supply temporarily unable to fall

The United States to raise interest rates and financial market volatility and other potential risks, Bank of Hong Kong senior economic researcher Cai Yongxiong the second half of the property market to become more prudent. He pointed out that property prices in Hong Kong increased by more than 2% last year, representing an average increase of 2% per month. This is a significant increase. “After a certain increase, it is not necessary to raise interest rates to cause any external or financial Fluctuations in the market are likely to cause adjustments. "

Hong Kong exchange short-term expected steady no obvious capital

However, he added that although there was a downside risk in the property market, it was expected that the low interest rate in the Hong Kong dollar would continue and the long-term housing supply would be difficult to increase substantially. However, there was no significant change in the short term, And to maintain this year’s property prices rose 8% forecast.

Hong Kong earlier fell below the 7.8 level, causing the market to worry about spending. Senior economic researcher Zhuo Liang said that there is no sign of a clear flow of funds at the Hong Kong dollar. It is expected to be short-term, depending on the Hong Kong and US interest rate differentials and the rate hike of the US Federal Reserve.

As Hong Kong has not followed the interest rate adjustment in the past four times, it has the opportunity to influence the flow of funds in the stock market once the rate increases. Chief economist E Zhihuan said that Hong Kong is a free port, free access to funds under the rule does not rule out the adjustment, but the current stock market share of the overall stock market and trading volume were 6 percent and 7 percent view, I believe if the market China’s economy is not much concern, the stock market trading volume should be no major impact.

In terms of the local economy, E Zhihuan believes that Hong Kong as an open economy is expected to benefit from the global economy, this year’s economic outlook will be better than last year, is expected to achieve annual economic growth of 2.8%, an increase of nearly 1 percentage point last year.