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The Development and Performance of REITs in Hong Kong

Author/s: Graeme Newell, Wu Yue, Chau Kwong Wing, Wong Siu Kei

Date Published: 1/01/2010

Published in: Volume 16 - 2010 Issue 2 (pages 190 - 206)

Abstract

Hong Kong is one of the most dynamic commercial property markets in Asia. With the recent development of REITs in Asia, HK-REITs have become an important property investment vehicle in Hong Kong since 2005. This paper assesses the significance, risk-adjusted performance and portfolio diversification benefits of HK-REITs in a mixed-asset portfolio in Hong Kong over 2005–2008. The impact of the global financial crisis on HK-REITs and the ongoing strategic development of HK-REITs are also assessed. HK-REITs are seen to deliver strong risk-adjusted returns and to have been robust during the GFC with superior risk-adjusted returns to other listed asset classes, but some loss of diversification benefits was also evident in the GFC.

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Keywords

Asia Reits - Global Financial Crisis - Hk-Reits - Hong Kong - Portfolio Diversification - Risk-Adjusted Returns

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