HONG KONG'S bears could be heading for hibernation after two significant events last week.
The first was the better-than-expected profits announced by Cheung Kong, one of the key property developers in the territory. The second was the Government's decision to stop intervening in the property market.
Both events are timely and are likely to have lasting effects on the property sector, which has spent the past five months in the doldrums.
Cheung Kong is regarded as a barometer for property stocks in Hong Kong: when the Li Ka-shing group is performing strongly, all's well with Hong Kong.
Although its net result fell marginally compared with the same period last year, the dip was much more gentle than expected and appears to pave the way for a rebound in the second half.
The real breakthrough, however, was the Government's surprise decision to take no further action to cool property prices.
After announcing a series of measures in June to cut speculators out of the market and bring home prices to within reach of genuine buyers, the Government believes it has completed its task.