Hong Kong Property Stocks Overheat as Outlook Improves: Chart

As far as stock investors are concerned, talk of a plunge in Hong Kong property prices is overdone. An index of real estate companies listed in the city has surged 35 percent from a three-year low in January as traders scale back bets for higher U.S. borrowing costs and home prices rebound from a 13 percent slump. Such exuberance has lifted the relative strength index of property stocks to 80.2, far above the 70 level that signals to some traders shares are overbought.

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