UBS: The Hong Kong SAR Government's response to the real estate industry policy is relatively limited, and it is more optimistic about the development of mainland developers.

UBS released a research report stating that, according to Chinese real estate brokers, cities such as Chengdu, Hangzhou, Chongqing, Jinan, and Zhengzhou, which are relatively affected by the domestic economy, have stable demand. However, buyers are sensitive to potential interest rate cuts and are waiting for potential policy stimulus. Overall, the bank is more optimistic about mainland developers than Hong Kong developers, mainly due to more policy responses and lower inventory levels in mainland core first and second-tier cities compared to Hong Kong. In terms of policy responses, UBS expects that the mainland government may accelerate inventory or idle land repurchase plans and carry out urban village transformation through the issuance of special bonds by local governments. In addition, the bank predicts a 30 to 40 basis point cut in policy interest rates. Regarding the Hong Kong property market, UBS stated that buyers are adopting a wait-and-see attitude, and developers have slowed down the launch of new projects in the uncertain market environment. Compared to the mainland, as most policies have already been relaxed, the government of the Hong Kong Special Administrative Region has relatively limited policy responses to the real estate industry, and with high inventory levels recently, it is expected to take some time to clear the inventory.