UBS: Hong Kong residents' investment and consumption intentions are more cautious than expected. Sino Land is added to the local preferred stock list while Hang Lung Properties is removed

UBS conducted a survey on investment and consumption intentions in Hong Kong. Overall, the sentiment of the respondents was more cautious than expected. Although the financial situation of the respondents has remained relatively stable over the past 12 months, the number of respondents holding a positive view on Hong Kong's economic prospects for the next 12 months has decreased, which has suppressed consumption willingness, while investment willingness has remained relatively stable. The survey also found that the issues of rising living costs and job security were the most concerning topics for respondents.

The bank believes that the positive momentum in the local financial sector should support the overall economy and labor demand, coupled with the robust performance of Hong Kong and A-shares bringing a positive wealth effect, indicating that there is still room for improvement in resident confidence by 2026.

The bank reiterated its positive outlook on the real estate and financial sectors, removing Henderson Land (00012.HK) from its local preferred stock list, replacing it with SINO LAND (00083.HK) due to higher dividend visibility; other stocks on the list include AIA (01299.HK), SWIREPROPERTIES (01972.HK), GALAXY ENT (00027.HK), and WYNN MACAU (01128.HK)