Zhi Tong Cai Jing·2025-09-09 02:44Group 1 - UBS report indicates that the upcoming Federal Reserve interest rate cuts will benefit Hong Kong real estate but negatively impact Hong Kong banks [1] - The bank maintains a cautious stance on bank stocks, currently underweighting them, and has placed Hang Seng Bank on its least favored list [1] - UBS continues to favor Hong Kong property developers and has a positive outlook on Wynn Macau and Galaxy Entertainment due to improved demand from high-end clientele and attractive dividend yields [1] Group 2 - In the first half of the year, approximately 98% of the 49 Hong Kong-listed companies covered by UBS have reported earnings, with an overall net profit decline of 7% year-on-year despite a 4% increase in revenue [2] - More than half of the companies met expectations, but those falling short slightly outnumbered those exceeding expectations; the financial sector performed well due to favorable market conditions and better-than-expected non-interest income [2] - The upcoming interest rate cuts are expected to reverse the outperformance of bank stocks, which have outperformed Hong Kong real estate stocks by 80% since the HIBOR uptrend began in December 2021 [2]