Analysts say there is no evidence to suggest that rich Chinese tourists will benefit the property sector
The easing of mainland restrictions for individual travellers has driven Hong Kong stocks higher recently in the hope that millions of big-spending tourists will help revitalise the territory's economy.
While analysts do not doubt the economic benefits the expected rush of new capital will bring, many are sceptical about how wide ranging its effect will be on the equities market.
Investment bank JP Morgan expects arrivals from across the border to rise to nine million this year and 11.8 million next year, while CLSA predicts spending in the territory could increase by $12 billion - or 1 per cent of nominal gross domestic product - as a result.
Speculation that mainlanders who are prepared to invest $6.5 million in Hong Kong will be granted residency has some pundits estimating luxury property prices will rise 10 per cent. Hopes that these wealthy arrivals will buy flats in the territory has also helped drive the share price of developers such as Sun Hung Kai Properties and Henderson Land Development to 14-month highs.
However, analysts said few sectors would benefit significantly from the mainland tourist boom - and property was not one of them.
A recent CLSA study said: 'Contrary to popular perception, mainland tourists are more interested in conspicuous consumption than investing in Hong Kong.'