HK Land

HK Land: contrary to mkt expectations, 2Q12 Hudson Report showed a surprising uptick in HK’s net hiring expectations from 25% to 35%. Not only was the timing of the rebound earlier than expected but so was the contributors to the pick-up. Importantly, hiring expectations for banks and financial services reversed the past four quarters’ contraction and rose from 13% to 28%.

Nomura believes this is a key catalyst for HK landlords, reiterates bullish view. Notes, similar to the recent rebound in HK home prices, believes today’s unexpected hiring improvement may set the stage for a faster-than-expected office mkt recovery. Tips HK Land, Champions, Hysan and Swire Properties as key beneficiaries.