The Hong Kong financial regulator is said to be considering lifting rules that bar local real estate investment trusts from investing in foreign markets.
Speaking to Reuters earlier this week, a spokesman from the Securities and Futures Commission announced that the SFC is intending to draw up a framework that will allow local Reits to invest overseas “as soon as possible.”
“We are keen to see a set of benchmarks for allowing Reits to invest overseas,” the spokesman confirmed.
However, the SFC spokesman went on to add that any change in the rules concerning Reits would have to be subject to a period of public consulatation.
Hong Kong has only recently established a domestic market for Reits, after the SFC published rules governing the operation of the funds last year. However, these rules have been criticised by many for being too restrictive, and this has been evidenced by the slow uptake in interest in the Hong kong market.
Many have cited the fact that Hong Kong still levies a property tax as one of the major reasons why real estate investors are attracted to the rival jurisdiction of Singapore. Large Hong Kong-based property developer Cheung Holdings chose to launch its $400 million Fortune real estate fund there earlier in the year.
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