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UBS lowers SHK Properties (00016) to HK$154.05
UBS Global Research lowered its target price for
Sun Hung Kai Properties (SHKP)(00016) by 6.3% to HK$154.05, and maintained its "buy" 
rating.
  The research house thinks any tightening of rules on mortgage lending by non-banks would
affect transaction volumes of leading developers such as SHKP. UBS estimated 9% of SHKP's
primary sales are financed by its own lending. Its percentage of lending to sales is in
the top three among its peers.
  UBS has recently surveyed 278 people who had bought properties in Hong Kong in the past
two years. Contrary to market belief, the results revealed that developer and parent 
lending, rather than lending from non-bank financial institutions (NBFIs), were key
financing sources for homebuyers, in addition to traditional bank financing.
  Hence, it believes any government tightening on lending by developers would have a 
substantial adverse impact on Hong Kong primary residential sales. 

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