SINGAPORE: JPMorgan Chase & Co has landed on six property stocks that can best weather the Hong Kong turmoil after applying a worst-case scenario that envisages home prices plunging 30%, retail sales falling by a similar amount and prime office rents sinking 40%.
While a worst-case scenario may seem a rather grim starting point, analysts at the New York-based investment bank said in a report earlier this week that’s what most investors are starting to factor in considering the uncertainties in the former British colony.
They include a re-escalation of the US-China trade war and the social unrest in Hong Kong, both of which will impact upon the city’s status as an international financial center, JPMorgan said.
Against that backdrop, just six companies make JPMorgan’s overweight list – CK Asset Holdings Ltd, Henderson Land Development Co, New World Development Co, Wharf Holdings Ltd, Hang Lung Properties Ltd and Link REIT.
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