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China property
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Don’t write off Hong Kong and mainland China despite headwinds, Post’s ‘Redefining Hong Kong’ conference hears

  • We have to hold a longer view on Shanghai, CBRE executive says
  • While mainland Chinese property giants Evergrande and Country Garden are floundering, two of Hong Kong’s biggest commercial landlords are ploughing billions into Shanghai property, conference hears

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A construction site in Shanghai. The city, along with Shenzhen, is a hub for innovation and economic activity, which boosts its long-term prospects, the conference has heard. Photo: EPA-EFE
Cheryl Arcibal
Hong Kong and mainland China might be facing headwinds currently, but investors should not write them off as investment opportunities still abound, even in a challenging business environment, according to analysts who spoke at a family office conference hosted by the Post on Wednesday.

Shanghai’s commercial property segment, in particular, should draw interest from investors as mainland China’s financial hub is poised to see growth in its financial services segment and, in some instances, could even overtake Hong Kong’s, said Henry Chin, global head of investor thought leadership and head of research for Asia-Pacific at CBRE.

“For Shanghai, we have to hold a longer view,” Chin told the “Redefining Hong Kong Series – Family Office Edition” conference. “At some point, property there will overtake Hong Kong for certain financial centres. Great office buildings can be had [now] at a 20 per cent discount from their valuations in 2018.

“Shanghai, in the long term, will be an important financial hub for China. Banks, asset management [firms], insurance companies and the stock exchange will grow. We are facing headwinds now, but it does not mean that we can write off China and Hong Kong.”

As one of China’s tier 1 and wealthiest cities, Shanghai’s stock market capitalisation has reached US$6.58 trillion, even larger than the Hong Kong stock market’s capitalisation of US$4.82 trillion.

China’s economic recovery lost some fizz in the second quarter of this year, registering a 0.8 per cent expansion against 2.2 per cent in the first three months of the year, according to government data.

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