Hong Kong developers have long struggled due to a weak economy and a steady loss of faith in the city’s status as Asia’s premier financial hub. A pivot by the US Federal Reserve may bring some relief at a time when their stocks are trading at all-time low valuations.
Traders are betting on a rebound in Hong Kong developers’ shares, anticipating that a US interest rate cut will boost property purchases.
The city’s interest rates are tied to the US, given its currency peg. Morgan Stanley analysts predict a 5% home price recovery in 2025, reversing a likely 8% drop this year.
