Hong Kong property stocks experienced a broad decline. At the time of writing, SHK PPT (00016) fell 4.14% to HK$136.7. HANG LUNG PPT (00101) dropped 3.72% to HK$8.29. HYSAN DEV (00014) decreased 3.21% to HK$18.99. WHARF REIC (01997) was down 2.45% to HK$25.44. SINO LAND (00083) declined 2.69% to HK$12.32.

The market movement is attributed to increased expectations for interest rate hikes. A surge in U.S. inflation pressures has led the market to price in potential monetary tightening. Furthermore, geopolitical tensions, including remarks from former President Trump regarding Iran, have contributed to persistently high international oil prices. Additional market concerns stem from the possibility that the Federal Reserve may focus on balance sheet reduction without cutting rates, alongside stronger-than-expected U.S. CPI and PPI data. The yield on the 10-year U.S. Treasury note exceeded 4.5%, while the 30-year yield surpassed 5%.

Boston Federal Reserve President Collins previously warned that the Fed might need to raise interest rates if inflation pressures broaden in the coming months. According to the CME FedWatch Tool, the market currently estimates a probability of nearly 51% for a Fed rate hike as early as December this year, with the probability of a hike by January 2027 around 60%.