Mainland funds are tight, affecting large-scale investment in the south
Under the Sino-US trade war, the funds are tight. In the Hong Kong investment property market, the sale of special commercial buildings has historically been supported by Chinese capital. I believe that the large-scale property investment market in Hong Kong will be affected in the short term.
Large-scale trading fell 60% in the third quarter
In recent years, the investment market has been very prosperous. Hong Kong has also seen billions of dollars in large transactions from time to time. According to the information, many of them are undertaken by Chinese-funded institutions. The market in Jiasha is more obvious. For example, the commercial transactions of more than 10 billion yuan, including the Everbright Center and the Evergrande Center, involve Chinese-funded participation.
According to Jones Lang LaSalle, the investment in investment properties of more than 20 million yuan in the second quarter of this year totaled 58.2 billion yuan, while Chinese capital accounted for 17.7 billion yuan, up 30%; and the total amount in the third quarter only recorded about 212. Billions of yuan fell by 63.5% quarter-to-quarter, while those involving Chinese capital recorded zero turnover, which was the first time in recent years.
In the past, Chinese capital concentrated on investment in two major areas, namely luxury homes and commercial buildings. The former has rarely seen Chinese developers investing in land this year. In recent months, there have been few high-priced housing transactions. In terms of commercial buildings, the largest commercial building in recent years was purchased by Hengli Group for RMB 15 billion. It is understood that Hengli is also seeking new shareholders to join due to financing difficulties.
The withdrawal of Chinese capital is believed to have a certain relationship with the Sino-US trade war. Last year, China implemented foreign exchange controls, which made it difficult for Chinese buyers to transfer funds to purchase overseas properties. In recent months, Sino-US trade war broke out. The mainland’s funds were even more tense. In the near future, mainland buyers rarely came to Hong Kong to sweep goods. In recent years, the commercial market in Hong Kong has been improving. Every year, there are billions to billions of commercial buildings. Most of them are undertaken by Chinese capital. Under the withdrawal of Chinese capital, the commercial market is the first to be affected, and large transactions are significantly reduced.