Modest boost seen from Hong Kong’s one-stop REIT approval

Morningstar now models 2026 capex at US$47b.

Morningstar sees only a modest near-term benefit from Hong Kong’s introduction of a “one-stop” approval channel for REITs.

Whilst the streamlined process may ease administrative friction, the broader outlook remains weighed down by weak real estate fundamentals and elevated interest rates.

Morningstar noted meaningful upside would depend more on the inclusion of Hong Kong REITs in the Stock Connect scheme—though no timeline has been confirmed.

The city’s continued lack of tax transparency compared to Singapore and Japan also limits its attractiveness as a listing destination, though future reforms could help level the playing field.

In semiconductors, TSMC raised its full-year U.S. dollar revenue growth forecast to the mid-30% range, up from a prior estimate of 30%.

The company also lifted the lower bound of its 2025 capital expenditure guidance by 5% to US
$40b, as AI-related demand expands beyond a single customer. For Q3, TSMC reported TW$990b in revenue and a gross margin of 59.5%.

Morningstar now models 2026 capex at US$47b, reflecting its view that long-term structural demand remains strong. The firm raised its fair value estimate (FVE) for TSMC to TW$1,900/US$310 per share.