Update | Shanghai-Hong Kong stock connect should boost demand for office space in city
The launch of the Shanghai-Hong Kong Stock Connect plan next week will stimulate the demand for office space from firms in the finance sector over the longer term but the impact over the shorter-term is insignificant, property consultants said.
“It is exciting news, it will be positive to the business environment and certainly it will support the office sector in Central,” said Craig Shute, senior managing director, Hong Kong, Macau & Taiwan at CBRE.
The China Securities Regulatory Commission and the Securities and Futures Commission on Monday approved the launch of the Shanghai-Hong Kong Stock Connect scheme to link the two markets in Shanghai and Hong Kong on November 17.
Hong Kong’s improved access to Chinese capital markets will attract more overseas companies to set up offices in the city to support fund raising activity and geographical expansion, creating strong demand for office space in the Central business area and the surrounding districts.
Shute said whilst these new set-ups may not initially have large space requirements, they could eventually expand to become larger tenants should they successfully grow their business in Hong Kong.
“Aside from a handful of PRC securities companies looking to set up representative offices ahead of the launch date, we have yet to see any significant increase in office demand arising from the Shanghai-Hong Kong Stock Connect pilot programme,” said Denis Ma, head of research at JLL in Hong Kong.
Most of the larger authorised institutions participating in the programme already have sizeable offices in the city that are adequate for any additional staff, said Ma.
“However, we believe the pilot programme is a positive for the market over the longer term, especially if it expands in scope,” said Ma.
