Hong Kong property stocks plummeted across the board, with Hang Lung Properties falling more than 6%. Morgan Stanley predicts a 10% decline in Hong Kong property prices for the whole year.

Hong Kong property stocks are all down. As of the time of writing, Hang Lung PPT fell 6.11% to HKD 9.07; Swire Properties fell 4.69% to HKD 14.22; Wharf REIC fell 2.63% to HKD 22.65; CK Asset fell 2.41% to HKD 34.45. According to a report by Morgan Stanley, interest rate cuts since the second half of this year should help reduce interest expenses, but the housing market needs support from mortgage rate cuts and improved market sentiment, which may not happen this year. It is expected that Hong Kong's property prices will fall by 10% for the whole year, returning to the level of August 2016. In addition, the bank predicts that Hong Kong's interbank rates in the first half of this year will be about 100 basis points higher than the same period last year, which is unfavorable for companies with high debt and a high proportion of floating interest rates. The bank believes that only companies with strong balance sheets are more likely to maintain or increase dividends in this environment.