No. of view: 389
Property News Weekly Digest
〈The Standard, Feb 9, 2024〉Rents for Two International Finance Centre, one of the world's most expensive super Grade A buildings, in Central is still 14 percent lower than three years ago.

An example of that is reinsurance company China Re Asset Management's move into units two to five on the 41st floor.

It is reportedly paying a monthly rent of HK$1.01 million, or HK$150 per square foot, way down from the HK$175 that Funde Asset Management (Hong Kong) was previously shelling out for its three-year lease.

The move fits in with China Re's upgrading and expansion plan: the new office space is 6,740 sq ft, much more spacious than its old

〈The Standard, Feb 8, 2024〉Hong Kong's major housing estates have seen deals from which vendors have emerged with profits to show for their investments amid an improved market atmosphere.

The improved sentiment stems from expectations that interest rate cuts are in the offing and the government will do away with the "spicy measures" that it is using to discourage speculators at a time when prices were skyrocketing.

Vendors in estates such as City One Shatin, Tung Chung Crescent, Taikoo Shing in Quarry Bay and Banyan Garden in Cheung Sha Wan saw gains on paper ranging from 49 percent to over double what they paid, according to information from property agents.

According to data from Centaline Property, a two-bedroom unit measuring 327 square feet in City One Shatin brought a paper gain of HK$2.87 million to the owner, who had held on to the place for 17 years.

〈Asian Post, Feb 7, 2024〉Foreign investments in China have hit an 18-year low in late 2022, with nuances of language and communication in China being one of the primary challenges.

“Knowing the language in China, the correct tone, and the correct communication with your partners, staff, and government agencies is an important aspect of doing business,” Yeo Lee Soon, RSM Singapore’s Director of China Business Advisory, said.

He also pointed out the legal restrictions for foreign businesses, known as the ‘negative list,’ which impacts the type of structure businesses can set up in China

〈Hong Kong Business, Feb 6, 2024〉CPA Australia proposes measures enhancing Hong Kong’s economy to be included in Budget 2024-25.

The committee urges the government to address the estimated $127b fiscal deficit for FY2023-24 and $708b fiscal reserves in the upcoming budget.

CPA suggested the enhancement of the city's overall attractiveness to companies, investment, and talent as well as its appeal as a green city for businesses and tourists to increase revenue.

In terms of sustainability, the CPA urged the government to study the implementation of a carbon tax on corporations emitting significant greenhouse gases and hiking penalties for environmental damage to achieve carbon neutrality.

To attract more business into Hong Kong, CPA underscored the need for Hong Kong to sign more jurisdictions minimising double taxation. Tax reforms are also suggested to maintain healthy public finances.

Additionally, the CPA proposed financial support for SMEs and the promotion of cross-border R&D expenditures, especially in the GBA.

〈Macau daily, Feb 5, 2024〉A Hong Kong court’s order to liquidate China Evergrande, the world’s most heavily indebted real estate developer, is only a tentative step toward resolving a debt crisis that is haunting financial markets and dragging on the Chinese economy.

Evergrande owes $340 billion to its creditors. Experts say it’s unclear if Monday’s order will be enforced in mainland China, where the company and 90% of its assets are based. Lenders inside of China already have claims on most of those “onshore” assets, and Beijing is likely to favor them.

The order by the Hong Kong High Court also is not a remedy for the crisis of confidence haunting China’s financial markets.

The liquidators acting on behalf of the creditors in the Hong Kong case “will have a relatively straightforward path to trying to claim offshore assets,” said Brock Silvers, managing director of Kaiyuan Capital. “But the company has very few offshore assets. Almost everything is onshore, and onshore the liquidators’ authority simply isn’t recognized.”