Other than BABA, LINK REIT presents another opportunity in the upcoming HK/ China bill especially if there is going to be rate cuts in 2nd half of this year.
The current PB ratio is cheap and the dividend yield is attractive. Hence on paper, it appears to be a good business to invest in.
The only drawbacks that perhaps difficult to quantify is the change in HK consumer behaviour. If you speak to any Hong Konger, the general trend is for Hong Konger to shop and spend in the mainland rather than HK. This trend is likely to continue and become the norm in the future. This will have an impact to retail mall demand in HK and how this affect the property market or LINK reit in Hk remains to be seen.
What is everyone thought on Hong Konger unwillingness to spend in HK and would prefer to spend in Mainland or Japan?
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