Some of China’s biggest real estate developers are in the midst of launching securities as a new mode of financing.
Shanghai, the commercial and financial centre of China, is on track to become part of the “Big Seven” group of Established World Cities before the end of the decade.
Even as China tightens its reins on capital outflow, the country’s 2017 outbound investment into commercial properties is projected to at least match the US$30 billion recorded last year.
A ‘perfect storm’ around demand and supply is ensuring that, for the best returns, emerging cities will continue to lead the way in China’s logistics market.
Currently, only Japan, Hong Kong, and Singapore having established REIT markets with legal and procedural barriers so far preventing China from launching true REIT products.