Hong Kong Seeks to Revitalise the REITs (Asian Legal Business)
June 29, 2021 – The Hong Kong government recently launched a HK$270 million ($35 million) plan to encourage property owners to put their assets under real estate investment trusts (REITs) to defray listing expenses.
The subsidy plan, to be implemented by the Securities and Futures Commission, will also be offered to fund managers who launch open-ended funds in the city.
For Hong Kong, which has been viewed as trailing behind regional competitors like Singapore and Japan in the REIT space, the developments are expected to be game-changing.
Cindy Shek, a Hong Kong-based partner at King & Wood Mallesons, says the Hong Kong government is looking to revive REITS as a way to bolster the financial services market in Hong Kong.
“The government has been very proactive in rolling out various incentives to revitalise the REITs market, addressing issues from both the regulatory, investor and cost angles,” says Shek, noting these measures will help to promote the city’s status as a “leading capital-raising centre and its role as an asset and wealth management hub.”
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