Citibank: The reform of the tax system for incidental benefits is expected to stimulate demand for office and residential properties in Hong Kong, benefiting Swire Properties and Sun Hung Kai Properties.

Citigroup published a research report stating that the Hong Kong government gazetted and submitted the "2026 Taxation Ordinance Bill" in June this year, suggesting the optimization of tax relief measures by expanding the definition of funds, abolishing the 5% threshold for related transactions, and providing tax relief for associated equity to attract private equity funds and family offices to settle in Hong Kong, thereby promoting the inflow of capital and talent. Citigroup believes that these reforms will become a structural catalyst for attracting capital and talent to Hong Kong, supporting demand for office and residential spaces. It is expected that office demand could grow by at least 5%, with the number of newly relocated talents increasing by about 2%. Meanwhile, existing asset managers in Hong Kong may use the tax savings for property purchases, which could enhance Hong Kong's international standing in the long term, supporting economic and asset valuation growth. It is believed that companies such as Swire Properties, Henderson Land Development, and New World Development could benefit.