Kenny Tang Property Quotations

Sentiment was seriously affected by news of an increase in China's lending rates. This pulled down the property sector both in Hong Kong and on the mainland and also affected H-shares and red chips across the board.

The rise in property stocks was due to a technical rebound. These shares will come under further pressure as property sales are expected to slow in 2006 from a year earlier.

Property stocks sprang to life after falling about 10 percent on average over the past six months as rising interest rates dampened property market sentiment.

Investors are buying property shares ahead of results. Most expect the results to be strong on the back of contributions from new (property) developments which should have contributed to earnings in the six months to December.

They will be trying to identify companies that are trading at sizable discounts to their net asset value, and many of these will be property companies.

The developer has benefited from a strong property market last year but the sales growth may slow down this year because of rising interest rates.