Justin Chiu Kwok-hung of Fortune REIT
A REIT controlled by Hong Kong’s richest man is bucking a Hong Kong government proposal that would widen the scope of activity for real estate investment trusts listed on the Hong Kong stock exchange.
Justin Chiu Kwok-hung, who heads Fortune REIT, a trust operated by Li’s Cheung Kong Holdings has stated that the proposal, which would allow REITs to engage in new project development may present too much risk.
In an interview with the South China Morning Post, Chiu said,
“When the trusts were launched in 2008 they were created with the aim of seeking stable returns. Therefore, the idea of allowing them to invest directly in developing properties is wrong.”
Allowing Hong Kong-listed reits to undertake development projects would add an element of risk to their investment status, said Chiu, since their incomes would fluctuate.
In a report released in November, Hong Kong’s Financial Services Development Council proposed that REITs be allowed to allocate up to 10 per cent of their total assets to property development projects.
In other news,
Rhodium Group Finds China Outbound Investment on the Rise
The US-based consultancy found that China’s overseas investment doubled in 2013 to US$14 billion, with 76 percent of the total investment coming from private firms.
China to Unify Its Central and Provincial Government Statistics
Perhaps in an attempt to cut down on lies and damned lies, Reuters reports that,
China will unify the way it calculates provincial economic output to help close a gap with national figures, the country’s chief statistician said on Tuesday, amid skepticism about the reliability of Chinese data.
Developer Greentown Reports 2013 Sales of RMB 62.1 Billion
Hong Kong-listed Chinese developer Greentown (which was earlier bailed out by Wharf Holdings) reported sales growth of 22 percent for the year, in a preliminary report.
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