Positive Outlook on Real Estate: HSBC Global Research has a favorable view on the real estate sectors in Hong Kong and Singapore, citing structural factors that support this optimism.

Recommended Stocks: The report highlights five Buy-rated stocks in Hong Kong, including SHK PPT, Henderson Land, and Sino Land, along with City Developments and UOL Group in Singapore.

Market Dynamics: The Hong Kong property market is benefiting from a shift in capital away from China's adjusting property market, enhancing its attractiveness.

Singapore's Market Revitalization: Singapore has introduced a SGD5 billion policy to stimulate the stock market and attract local investment into its undervalued real estate sector.

Market Overview: The HSI rose by 54 points (0.2%) to 26,830, while the HSCEI fell by 19 points (0.2%) to 9,060, and the HSTECH dropped by 72 points (1.3%) to 5,453, with a total half-day turnover of $195.285 billion.

Tech Sector Performance: Major tech stocks like TENCENT and BIDU-SW saw significant declines of 4.1% and 3.8%, respectively, with TENCENT's turnover nearing $26 billion, while other tech companies also experienced losses.

Banking Sector Gains: Banks such as HSBC and BOC HONG KONG reported gains of 2.3% and 2.5%, respectively, contributing to a positive trend in the banking sector, alongside notable increases in Chinese insurers.

Commodity and Real Estate Stocks: Commodity prices rose, with companies like ZIJIN GOLD INTL and CMOC increasing by over 4%, while Hong Kong homebuilders also saw gains, with HENDERSON LAND and SHK PPT rising by 2.1% and 1.7%.

Market Performance: The Hong Kong bourse opened higher, with the Hang Seng Index (HSI) gaining 435 points to reach 27,562, marking its highest level since July 2021, supported by strong turnover of HKD145.929 billion.

Banking Sector Gains: Major financial institutions like HSBC, BOC Hong Kong, and Standard Chartered saw significant increases in their stock prices, with HSBC reaching a historical high and a market cap exceeding USD300 billion.

Telecom and Energy Stocks: Chinese telecom companies rebounded alongside the market, while major oil companies also experienced notable gains, with PetroChina and CNOOC rising by over 5%.

Real Estate and Gold Mining: Hong Kong's private residential price index continued to rise, boosting local real estate stocks, while international gold prices peaked, benefiting gold mining companies like Zijin Mining and SD Gold.

Citi Research Insights: Citi Research highlights that investors are focusing on the potential upside of the Hong Kong real estate market for 2026-2027, despite last year's subdued performance, with a polarized rental outlook between luxury homes and office spaces.

Developer vs. Landlord Potential: The report suggests that developers may have greater earnings per share (EPS) upside compared to landlords, benefiting from improved profit margins and new land acquisitions.

Stock Recommendations: Recommended stocks include SHK PPT, SINO LAND, and HANG LUNG PPT, while UBS has made adjustments to its top picks, adding SINO LAND and removing HENDERSON LAND.

Dividend Outlook: The report indicates stable dividends for several companies, with SWIREPROPERTIES and Hongkong Land aiming for mid-single-digit growth, while LINK REIT and others may see a decrease in dividend per unit (DPU) due to negative rental growth.

Strong Performance of Hong Kong Developers: Hong Kong property developers have experienced strong stock performance this year due to robust sales of new projects and positive market sentiment, according to CLSA's research report.

Continued Uptrend in Property Prices: CLSA anticipates that the uptrend in property prices will persist, although SINO LAND's net cash value is expected to decline compared to its peers' property asset portfolios.

Rating Downgrade for SINO LAND: Despite a significant increase in SINO LAND's stock price by 42% since receiving a High-Conviction Outperform rating, CLSA has downgraded its rating to Outperform while raising the target price from HKD10.74 to HKD12.1.

Short Selling Data: As of January 26, 2026, SINO LAND has reported short selling of $19.32 million with a ratio of 13.148%, indicating some market caution.