Hong Kong's homebuilders may have weathered the worst of their refinancing risk, with total loan maturities falling by about 20% YoY to $201 billion as of December 2024, according to a research report released by UBS.

As of December 2024, NEW WORLD DEV (00017.HK)  -0.150 (-2.885%)    Short selling $1.70M; Ratio 7.718%   had a asset mortgage ratio of 34%, the report said. It is expected that the company will refinance its maturing bank loans by mortgaging more assets, which will alleviate market concerns about systemic risk.

Related NewsUBS Ratings, TPs on HK Developers (Table)
UBS estimated that Hong Kong residential prices will remain stable this year. In 2026, driven by interest rate cuts, rental growth recovery and a decrease in new launches, property prices are expected to rise by 0-5%. The broker remained optimistic about Hong Kong developers, with HENDERSON LAND (00012.HK)  -0.150 (-0.560%)    Short selling $29.63M; Ratio 30.615%   and SHK PPT (00016.HK)  -1.450 (-1.664%)    Short selling $32.20M; Ratio 31.825%   being its top picks.

UBS raised its target prices for the two stocks by 12%/ 2% to $29/ $96 each, and cut its target price for SINO LAND (00083.HK)  -0.030 (-0.363%)    Short selling $607.62K; Ratio 8.065%   from $10.5 to $9.8.
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-06-18 12:25.)