The inclusion of REITs into Stock Connect is an exciting development for investors, sponsors and property developers. In an interview with the South China Morning Post, Jeremy Ong explains that "This initiative will attract sponsors from around the world to list their REITs in Hong Kong, as they can target a larger pool of investors. This in turn may result in a better performing H-REIT sector, which can then attract more international REITs to list in Hong Kong."
At the same time, the new scheme will offer an additional pathway for developers to recapitalize their assets and improve Chinese investors' access to international real estate investments through Hong Kong REITs.
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