20 January 2019

Real estate plays surge as delay seen in property tax launch

Mainland real estate developers surged Wednesday amid reports that it may take two years before the proposed property tax could be launched because of the long legislative process involved. 

Hong Kong’s benchmark Hang Seng Index rose for a second day, as the market expected the People’s Bank of China will keep injecting liquidity in the short term. The index closed 49 points or 0.21 percent higher at 23,082.

The Hang Seng China Enterprises Index, the main gauge for H shares, climbed 1.06 percent to 10,326. The Shanghai Composite index jumped 2.16 percent to 2,051 points.

All property plays saw notable increases. Sunac China Holdings (01918.HK) shot up over 7 percent, while Greentown China (03900.HK) and Shimao Property (00813.HK) jumped more than 5 percent. Evergrande Real Estate Group (03333.HK), Country Garden (02007.HK) and Agile Property (03383.HK) rose over 3 percent.

China Overseas Land & Investment (00688.HK) added 2.5 percent while China Resources Land (01009.HK) closed 2.3 percent higher, making them the best blue-chip performers.

Funds piled into China lenders and brokerages, but took profit from Macau gaming plays. Galaxy Entertainment (00075.HK) slumped 5.5 percent, making it the worst performer among the HSI constituents. Sands China (01928.HK) gave up 4.1 percent while MGM China (02282.HK) tumbled 6.6 percent.

– Contact the writer at [email protected]




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