JP Morgan: Hong Kong's policy address may raise the stamp duty on luxury homes, but the overall impact remains manageable.

The Hong Kong government will release its first five-year plan and a new Policy Address next Wednesday (September 16). JP Morgan expects that the government may further increase the stamp duty on luxury properties in the upcoming Policy Address, although its impact is expected to be manageable. JP Morgan pointed out that while this is not part of their base case, they do not completely rule out the possibility of further increasing the stamp duty on luxury properties. Even if this occurs, the bank predicts that the impact will still be manageable. JP Morgan further indicated that they do not expect any meaningful support measures for the private housing market to be introduced in the first five-year plan report published by the Hong Kong government. The focus of the Policy Address may be on accelerating northern development and attracting talent, measures that are expected to support housing demand. However, in the short term, the share prices of Hong Kong developers will mainly be influenced by interest rate prospects.