Zhi Tong Cai Jing·2026-02-26 09:47Group 1 - The core viewpoint of the report indicates that the Hong Kong government did not announce any significant stimulus measures for the residential market, which has already bottomed out since mid-2025, but the overall tone is more positive due to active capital market activities and economic recovery [1] - The fiscal surplus for the fiscal year 2025/26 has been revised to a surplus of HKD 2.9 billion, with expectations for further improvement in the fiscal situation for 2026/27, predicting a revenue growth of 11% year-on-year, exceeding the expenditure growth of 7%, leading to a larger surplus of HKD 22 billion, equivalent to 0.7% of local GDP [1] - The budget assumes stable land revenue of HKD 18 billion, with the government intending to continue quarterly land sales to ensure stable supply in the coming years, and Goldman Sachs does not expect a sharp increase in land prices, viewing new property development projects as more economically viable and attractive for developers [1] Group 2 - The government plans to collaborate with mainland China to accelerate the inclusion of Real Estate Investment Trusts (REITs) into the mutual market, which may enhance market sentiment and the profitability of developers in the future [2] - Despite the lack of major stimulus measures for the residential market, a better economic outlook, supportive talent visa policies, and relatively low land sale prices are expected to benefit market sentiment and the recovery of developers' profitability [2] - Goldman Sachs maintains a positive outlook on the Hong Kong residential market, recommending "buy" ratings for New World Development (00016), Henderson Land Development (00012), and Sino Land Company (00083) [2]