Greater China: Equity & Bond Property Wrap: Equity: HK primary residential sales pace slows; Bond: OW LASUDE ‘26

Research evidence excerpt

Greater China: Equity & Bond Property Wrap: Equity: HK primary residential sales pace slows; Bond: OW LASUDE ‘26

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Greater China: Equity & Bond Property Wrap

Equity: HK primary residential sales pace

slows; Bond: OW LASUDE ‘26

Industry Overview

HK primary residential sales pace slows 10 June 2026

HK has recorded ~240 primary residential transactions so far in June, a slowdown versus Cross Asset Research

the 2,000+ monthly average over the past five months, as developers appear to be Greater China

pacing new launches more cautiously. We attribute the deceleration to a negative wealth Real Estate/Property

effect from recent local equity market weakness, renewed concerns over US rate hikes, Credit Research

and uncertainty stemming from Mainland China’s newly announced offshore investment Sirius Chan

rules; we expect the latter overhang to persist near term until clearer implementation ResearchMerrill LynchAnalyst(Hong Kong)

details emerge. — Karl Choi (Equity Research) +852 3508 3100

sirius.chan@bofa.com

Central govt’ financing subsidy to aid urban renewal JoyceResearchLiangAnalyst

At a policy briefing held by the State Council, the Vice Minister stated that RMB 97bn Merrill Lynch (Singapore)

joyce.liang@bofa.com

from the central budget and RMB 160bn ultra-long-term special government bonds will

Xiang Gao, CFA

be allocated to support local governments’ urban renewal in 2026. Compared with the Research Analyst

annual urban renewal investment exceeding RMB 3tn, the bulk of funding will be borne Merrill Lynch (Singapore)

xiang.gao@bofa.com

by local governments — including through special purpose bonds and policy bank

Suyang Lu

lending. We continue to expect the incremental impact of the latest urban renewal Research Analyst

program to be relatively minor.