As global investors look to benefit from China’s reopening following COVID-19 pandemic control measures, shares in Hong Kong property firms and real estate funds (China) has become a popular tool to promote economic recovery.
China’s repeal of its “No COVID” policy by the end of 2022 has boosted travel and tourism stock prices across Asia.
In addition, investors see Hong Kong’s real estate sector as particularly attractive as the mainland and local economies improve and tourists return to Hong Kong this year.
[Hong Kong hạ dự báo tăng trưởng kinh tế cả năm xuống -3,2%]
Jadgeep Ghuman, managing director of the public property group at real estate investment management firm Nuveen, said the reopening of Hong Kong is a positive factor and some real estate stocks has increased this year, with the Hang Seng Property Index up about 3.1%.
Fund managers are particularly interested in Hong Kong Real Estate Investment Trusts (REITs), because the fund’s share price is currently cheaper than the value of real estate they own or partially own. REIT is also a lender, so it also benefits when interest rates decrease.
Fund managers say the real estate sector has become a bargain since the borders reopened in January and when monetary tightening by the Federal Reserve is expected. is about to end.
Tim Gibson, co-head of Global Property Equities at Janus Henderson Investors, said: “Hong Kong has more to excite us than Chinese property companies, where financial data is still scant.”
Credit rating agency Moody’s Investors Service said in a report last week that a recovery in the travel and retail consumption sectors should boost real estate companies’ total earnings.
House prices in Hong Kong have fallen 15.6% in 2022, ending a 13-year uptrend after three years of the COVID-19 epidemic that sharply reduced the flow of property buyers from China and tourists.
In addition, the increase in mortgage interest rates in Hong Kong which started last year also caused problems for developers and mortgage borrowers.
Tra My (VNA/Vietnam+)