Investors dump Hong Kong properties at 20% loss as tariff war dents recovery hopes
Patrick Kwok Ho-chuen’s QF Capital is selling a residential site on Hong Kong Island at 24 per cent below its acquisition cost
Hong Kong property investors have continued to put up assets for sale at a loss as a tariff war between the US and China escalates, unsettling a market that has already struggled to overcome years of distress.
Bridgeway Prime Shop Fund Management sold a ground-level shop at One Eighty in Shau Kei Wan for HK$20.1 million (US$2.6 million) on April 8, founder Edwin Lee said, implying a 20 per cent loss. The fund paid HK$25 million each on average for two ground-level lots and a first-floor shop in the building in July 2023.
“The capital market will definitely be impacted by the trade war as investment confidence weakens,” Lee said by phone on Thursday. “Just like developers, we cannot hoard our stocks and wait while the market continues to drop.
The fund, which focuses exclusively on shops and retail assets, would continue to buy and sell assets with good potential to maintain its liquidity, Lee added.
US President Donald Trump on Wednesday imposed a 90-day moratorium on higher tariffs against most of its trading partners except mainland China and Hong Kong. On top of that, he raised the total tariff on imports from China to 125 per cent with effect from Thursday.
Beijing earlier raised its levy on all imports from the US to 84 per cent and vowed to fight back against tariffs. Traders expect Beijing to step up its stimulus measures to support the economy.