=MARKET BUZZ: Property Stocks Unlikely To See Relief In Funding Costs - BOCOM
HONG KONG (Jun 22) -- Hang Seng Property Index of large real estate companies listed in Hong Kong up 0.1% at 40,199.84, but still down 2.4% in the year to date; gauge well off this year's peak above 44,000 points as outflows, Fed rate increases suck out liquidity. Hong Kong Interbank Offered Rate with one-month tenor is now at 2.03% while three-month HIBOR is at 2.07% -- both near decade highs. BOCOM International says rising HIBOR will fuel concerns about an increase in both deposit and prime lending rates in the city, which may eventually reduce property investment demand. "We expect developers to be less aggressive in pricing ahead of further rate hikes" in 2H, house adds. Shares of Henderson Land up 0.7% and SHK Properties 0.3%, while CK Asset off 0.2%.
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