Mainland developers seeking a listing on the Hong Kong stock exchange can expect a bonanza as strong buying interest from foreign institutional investors could see some property plays double in price, according to Morgan Stanley. Kenny Tse, the executive director of the China and Hong Kong property team foreign funds, said real estate investment trusts from the United States had expressed interest in the mainland property market with some setting up offices in Hong Kong. 'This year will see many mainland developers tap Hong Kong's equity market and probably set a record,' he said. Excluding Shui On Group's proposed spin-off of mainland property flagship Shui On Land, he expects mainland developers to double the amount of funds raised this year. It is understood Shui On Land plans to raise about US$1 billion to finance its US$8 billion, 10-year mainland expansion. At the same time, Citicorp expects to see more China reits listing this year. 'The advent of China reits provides an important platform for property players to securitise commercial properties, allowing international property managers to leverage their value-enhancing property investment and management expertise without tying up their capital,' Citicorp said. Besides providing a new property market exposure, China reits should also be able to offer higher dividend yields given the higher organic yield from the physical properties, it said. Morgan Stanley remains upbeat about the mainland property market, saying the three years to 2006 were 'golden' years in terms of corporate earnings growth. However, Mr Tse expressed concern that the mainland was likely to impose further demand-side measures such as introducing capital gains tax, property transaction tax and land appreciation tax to stabilise home prices. 'Government policy is designed to stabilise property markets, not to damage them. But prices will slow nationwide this year,' he said.