<div id="readability-page-1"><div>UOB Kay Hian issued a report stating that new outbound investment regulations will curb investment demand from mainland China but will not affect professionals working or living in Hong Kong. Price momentum in the residential market remains strong, while a recovery in retail sales supports rental stabilization. The broker maintained an &#34;Equalweight&#34; rating on the Hong Kong property sector. It reiterated its forecast that residential prices will rise by 7% in 2026 and raised its retail sales growth forecast from 2.5% to 5%. The recent pullback in property stocks has created buying opportunities. Its top picks are SHK PPT (00016.HK) -1.700 (-1.406%) Short selling $116.28M; Ratio 28.071% and LINK REIT (00823.HK) -0.380 (-0.995%) Short selling $42.29M; Ratio 13.991% , with target prices of HKD143.8 and HKD44.3, respectively, both rated &#34;Buy&#34;.UOB Kay Hian noted that on June 1, the State Council issued the &#34;Regulations of the State Council on Outbound Investment&#34; (Order No. 837), which for the first time includes individual residents within the regulatory framework for outbound investment. Investors are required to complete approval/filing procedures, information reporting and cross-border fund registration for eligible overseas transactions, raising market concerns over funding sources of mainland Chinese buyers. In the first four months of 2026, buyers registered with Mandarin pinyin names accounted for about 28% of Hong Kong residential transaction volume. The broker estimates that their share in the primary market is even higher, at around 40%.Currently, the main funding sources for mainland buyers purchasing Hong Kong properties include offshore income, the annual foreign exchange quota of USD50,000, and one-off asset transfers related to obtaining overseas permanent residency. Although there is short-term uncertainty, this is conducive to a healthy recovery of Hong Kong's residential market. It is worth noting that existing policies do not permit the use of the annual USD50,000 foreign exchange quota for overseas property purchases. The broker expects regulations on individuals investing in overseas real estate to tighten further. However, support for mainland professionals working in Hong Kong to purchase homes for self-occupation is expected to continue, and dedicated foreign exchange channels may be provided. Therefore, the broker believes the policy will continue to support the healthy recovery of the Hong Kong market. Given the strong momentum in fundamentals, it reiterated its forecast of a 7% increase in property prices in 2026. (ad/)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-08 12:25.)</div></div>

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UOB Kay Hian views the recent pullback in Hong Kong property stocks as a buying opportunity, maintaining an 'Equalweight' sector rating. While new outbound investment regulations may curb mainland Chinese demand, they won't affect professionals living in HK. The broker raised its 2026 retail sales growth forecast to 5% and expects residential prices to rise 7%. Top picks are SHK PPT and LINK REIT, both rated 'Buy'.

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UOB Kay Hian: Recent Pullback in Property Stocks Creates Buying Opportunities; Top Picks SHK PPT and LINK REIT