2021.10.07
■ The HK Chief Executive delivered the 2021 Policy Address yesterday, focusing on housing and economic development. ■ The key policies had been reported by the press earlier and were anticipated by the market. ■ However, the 2021 Policy Address set a medium-term direction, and we don’t think there will be a major change despite the upcoming Legislative Council election (in Dec 21) and Chief Executive election (in Mar 22). ■ Given the current environment, the market should have fewer concerns about funding for capital work projects approval going forward, which is positive for construction-related names, including CSCI [3311.HK], NWS [0659.HK], FSE Lifestyle [0331.HK] and ATAL [1977.HK]. They face less policy risk and offer decent yields. ■ This analysis is based on industry and macro figures and may differ from the views of individual analysts, in some cases.
