HKEX Publishes Research Paper on Development Potential of Offshore Mainland China REITs in Hong Kong

The conclusions of the paper were that REITs offer investors the opportunity to diversify their portfolios and access a variety of properties with different valuations and investment returns. They serve as an alternative investment option to equities and bonds, providing diversification benefits. The development of the REIT market relies heavily on a supportive regulatory regime. In Mainland China, the pilot scheme for infrastructure public REITs has regularized the issuance and fundraising activities of onshore REITs. In Hong Kong, supportive policies, regulatory measures, and market connectivity with both international and Mainland markets create a favorable platform for the listing and trading of offshore Mainland REITs. The potential for the development of Mainland REITs, both onshore and offshore, is positive due to strong demand from issuers and investors. The synergy generated by connectivity between the Mainland onshore and Hong Kong offshore markets is expected to boost liquidity and attract more issuers, further establishing Hong Kong as a global REIT hub and promoting the internationalization of the Mainland capital market.

Resource: https://www.hkex.com.hk/-/media/HKEX-Market/News/Research-Reports/HKEx-Research-Papers/2023/CCEO_ML_REIT_202310_e.pdf

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