Lyon: It is expected that domestic real estate stocks will outperform Hong Kong real estate stocks within the year. The preferred choices are CHINA RES LAND (01109) and LINK REIT (00823).

Lyon releases a research report stating that the policy direction of the Chinese real estate market is showing a differentiation trend. Shanghai unexpectedly introduced multiple easing measures, while Hong Kong tightened its property market policies in a new financial budget. Lyon believes that Shanghai's easing measures are more effective than previous rounds, which should help support the second-hand property market. On the other hand, Hong Kong raised stamp duty on luxury homes worth over 100 million HKD for the first time since 2018, reflecting a possible tightening cycle in the Hong Kong property market. Lyon points out that historically, Hong Kong property stocks tend to adjust after a rebound. Therefore, it is expected that property developers will outperform Hong Kong property stocks for the rest of the year. The preferred stocks are CHINA RES LAND (01109) and LINK REIT (00823), with the former benefiting from policy environment and the latter benefiting from potential REIT market connectivity measures. Both are rated as "outperforming the market," with target prices of HKD 35.4 and HKD 51 respectively.