Ge Long Hui·2025-09-22 06:55Group 1 - UBS reports that following the Federal Reserve's 25 basis point rate cut and the Hong Kong Monetary Authority's adjustment of the overnight discount rate, Hong Kong banks have lowered the prime rate by 12.5 basis points to 5.125%, aligning with market expectations [1] - After the adjustment, the new mortgage rate for newly built residential properties will decrease from 3.5% to 3.375% [1] - UBS maintains that Hong Kong property prices will remain stable in 2025, with a potential moderate recovery of 0% to 5% in 2026 after inventory digestion [1] Group 2 - Among developers, UBS favors the performance of Sino Land, Henderson Land, and Kerry Properties over New World Development due to the latter's unattractive dividend yield [1] - UBS also prefers Hang Lung Properties, as the decline in HIBOR will reduce its interest expenses [1] - UBS has raised the target price for Sino Land by 14% to HKD 11.2, maintaining a "Buy" rating, reflecting a narrowing of the net asset value discount from 40% to 35%, supported by strong sales at Victoria Harbour and The Pacific Place, and a potential reduction in scrip dividend arrangements [1]