Page three - The Hong Kong property sector

We have maintained a short in the Hong Kong property index (HSP) for the better part of this year believing that with stretched affordability, stagnant wage growth and government measures to cool the sector, the companies do not reflect economic and sector fundamentals.

However, both the stocks and the physical property prices continue to exceed expectations with the HSP up about 35% this year and Hong Kong property prices, as measured by the Centaline Property Centa-City Leading Index, up 11% ytd.