<div id="readability-page-1"><div>Citi said in a report that Hong Kong's retail sales in April grew 8.6% YoY, showing solid performance, but the growth rate slowed from 13% in March and 12% in the first quarter. Growth in the luxury segment decelerated to 20% YoY, compared with 28% in the first quarter, mainly reflecting fading base effects and a decline in gold prices. Supermarket sales continued to show stable signs, rising 3% YoY, partly benefiting from increased promotional efforts by merchants. Online retail maintained strong momentum, growing 31% YoY and now accounting for 10% of total retail sales, reflecting continued shifts in consumer habits.The bank estimates Hong Kong's retail sales in May could grow 5% to 8% YoY, amounting to approximately HKD33 billion to HKD34 billion, partly supported by an 8% YoY increase in visitor arrivals during the Labour Day holiday, including a 10% YoY rise in mainland visitors. Although the depreciation of RMB against HKD provided support, overall YoY retail sales growth is expected to slow further from April due to a higher base, as market sentiment had already begun recovering from late May to June last year.Compared with its previous expectations, the bank has turned slightly more positive on the non-essential consumer retail sector, as stable sales have helped market rents for retail shops begin to stabilize, such as in the supermarket segment.The bank noted that it had earlier upgraded LINK REIT (00823.HK) -0.200 (-0.510%) Short selling $130.49M; Ratio 25.391% to Buy, mainly due to stabilizing market rents and the company's shift to an &#34;asset disposal + share buyback&#34; capital management strategy.In the luxury retail market in Hong Kong and mainland China, investor concerns over slower same-store sales growth in 2H due to a higher base have been the main reason for the recent share price correction. Nevertheless, the bank said HANG LUNG PPT (00101.HK) -0.150 (-1.875%) Short selling $19.00M; Ratio 36.795% 's 6.5% dividend yield has begun to attract income-seeking investors, while tenant sales performance at Harbour City under WHARF REIC (01997.HK) -0.660 (-2.739%) Short selling $19.50M; Ratio 30.884% has outperformed the broader market.Across the Hong Kong property sector, the bank's top picks are SHK PPT (00016.HK) -4.200 (-3.284%) Short selling $396.96M; Ratio 32.207% , CK ASSET (01113.HK) -1.200 (-2.510%) Short selling $102.70M; Ratio 38.233% , SWIREPROPERTIES (01972.HK) -0.160 (-0.705%) Short selling $7.34M; Ratio 10.224% and LINK REIT (00823.HK) -0.200 (-0.510%) Short selling $130.49M; Ratio 25.391% . (ha/da)(HK stocks quote is delayed for at least 15 mins.Short Selling Data as at 2026-06-02 16:25.)</div></div>

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Citi upgraded its outlook on Hong Kong's non-essential consumer retail sector, citing stabilizing market rents. The bank identified SHK PPT, CK Asset, Swire Properties, and Link REIT as top picks in local property stocks. This recommendation is supported by solid April retail sales growth of 8.6% YoY, stable supermarket performance, and strong online retail momentum. Citi also noted that Link REIT was upgraded to Buy due to rent stabilization and a new capital management strategy.

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Citi: Top Picks in Local Property Stocks SHK PPT , CK ASSET , SWIREPROPERTIES  and LINK REIT