Hong Kong utility stocks have demonstrated resilience amid the market turmoil, with the dividend and US 10-year Treasury yield spread narrowing to the lowest since 2020 because of improved fundamentals, according to a report from HSBC Global Research.

The broker believes that this spread may narrow further as China's southbound investors continue to increase holdings, especially in stocks with higher dividend growth potential.

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HSBC Global Research preferred CLP HOLDINGS (00002.HK)  -0.250 (-0.376%)    Short selling $27.30M; Ratio 19.644%   the most, followed by CKI HOLDINGS (01038.HK)  +0.300 (+0.570%)    Short selling $8.67M; Ratio 21.381%   , both benefiting from the decline in HIBOR and the HKD depreciation.

The broker also downgraded POWER ASSETS (00006.HK)  +0.200 (+0.390%)    Short selling $13.83M; Ratio 20.571%   from Buy to Hold, considering the current dividend as reasonable and cash flow constraints limiting further dividend growth.

Share│Investment Rating│Target Price (HKD)
CLP HOLDINGS (00002.HK)  -0.250 (-0.376%)    Short selling $27.30M; Ratio 19.644%   │Buy│80
CKI HOLDINGS (01038.HK)  +0.300 (+0.570%)    Short selling $8.67M; Ratio 21.381%   │Buy│66 -> 65
HKELECTRIC-SS (02638.HK)  +0.030 (+0.517%)    Short selling $168.46K; Ratio 0.991%   │Buy│6.2 -> 6.8
POWER ASSETS (00006.HK)  +0.200 (+0.390%)    Short selling $13.83M; Ratio 20.571%   │Buy->Hold│62 -> 51
HK & CHINA GAS (00003.HK)  -0.010 (-0.149%)    Short selling $25.07M; Ratio 22.145%   │Hold│6.2 -> 6.6
(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2025-07-04 16:25.)

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