Made in China-HK Property,CN IPPs,Gas Utilities:O&G reform plan;NTES:Game Enthusiast Day

In addition to the curbs on financing to developers announced on May 12, the HKMA announced the 8th round of mortgage tightening since Oct-09 with the aim of safeguarding the banking system from escalating residential mortgage risks on surging property prices. Given there is no corresponding tightening on developers’ offering of high LTV mortgages, we believe the impact on the property market will be relatively mild. Thus, we expect buying demand to skew even more towards the primary market. Indeed, the primary market’s share has continued to rise since the first mortgage tightening. In Apr-17, primary sales made up 39% of total volume, markedly up from 15% in Oct-09. (Jason Ching - 852 2203 6205)