HKREITA supports Hong Kong Exchanges and Clearing Limited (HKEX) “Corporate Access Series: Hong Kong REITs – Outlook and Opportunities” held on 30 November 2022 (Wednesday), to discuss with regulators and industry experts the outlook for real estate investments and the latest developments surrounding asset securitisation. Three Honorary Founding Presidents of HKREITA, George Hongchoy, Executive Director and CEO of Link REIT, Lin Deliang, Chairman, Executive Director and CEO of Yuexiu REIT and Hubert Chak, Executive Director and CEO of SF REIT, were speakers of the event.
In his keynote speech, HKREITA Chairman Mr Hongchoy thanks Hong Kong regulators for creating a marketplace that promotes the development and growth of the REIT industry. He believes catalysts to attract more investors and issuers thus making the Hong Kong market more successful include admitting REITs into the Stock Connect scheme and addressing potential issuers’ pain points such as stamp duty exemption when sponsors transfer assets into the REIT, as well as allowing companies rather than trust to set up as REITS.
In a panel discussion on "Hong Kong REITs: Challenges and Opportunities in the Post-pandemic Era", Mr Lin said that, as an international financial centre, Hong Kong has a leading edge in attracting domestic and foreign investors. With a reliable capital system, Hong Kong REITs continue to create long-term value for investors through a sound governance structure, diversified asset portfolio management and improved operating fundamentals. Mr Lin also looked forward to maintaining close cooperation between Mainland China and Hong Kong in promoting the development of REITs, further enhancing investment liquidity and expanding the shareholder base through Stock Connect, making Hong Kong the first choice for foreign investors to invest in real estate in Mainland China and Southeast Asia and establish REITs.
Mr Chak explained in the panel discussion on "The Future of Real Estate Investment " that, the evolution of technology has been driving the growth of new business models, which has had impacted the real estate sector. The growing demand for "new economy" assets, including logistics centres and data centres, is increasing to support the growth of e-commerce and data storage, which require the use of physical properties to operate. Also, as investors shifted from traditional assets such as offices and retail to new economic asset classes, asset allocation also increased.
Click here to read the full speech of George Hongchoy.