JP Morgan Chase released the latest report, predicting that residential prices in Hong Kong will fall by 10% this year, mainly because the unemployment rate has the opportunity to rise, the lagging effect brought about will cause temporary negative emotions
According to the report, due to the abundant liquidity of the system and the low interest rates and the shortage of land supply for private housing, the positive momentum of the residential market is expected to return in the second half of this year.
The report said that Chinese tourists’ confidence in Hong Kong has declined and China’s policy of keeping consumption in the country is expected to reduce retail rents by 20% this year. Affected by China’s economic slowdown, it is estimated that office rents in Central will fall by 15%. The bank rated Changshi Group (1113), Henderson Land (012), New World Development (017) and Wharf (004) as “overweight”.
Standard Chartered bullish on European and American stock markets
On the other hand, Standard Chartered Hong Kong Wealth Management released the market outlook for 2020. Liang Zhenhui, head of wealth management investment strategy, described that in 2020, due to more factors such as Sino-US trade, the US election and the Middle East conflict, the investment market will be more difficult than 2019. The stock market returns will be higher than the bond market, but may not be as strong as last year. It is recommended to use the “middle way” to balance risks and returns.
Standard Chartered Hong Kong is optimistic about the stock market outlook for 2020 and prefers mature markets such as US stocks and Eurozone stocks
Liang Zhenhui pointed out that the mainland is expected to continue to promote stimulus policies during the year, H shares will be good, and Hong Kong stocks are also expected to benefit.