MAS names sustainability head; Malaysia’s EPF appoints COO and CFO; GIC PE head for SEA leaves; State Super hires new exec; Hesta appoints chief growth officer, chief Debby Blakey appointed to corporate governance board; ex-BlackRock exec joins IQ-EQ in Singapore; HSBC AM builds direct real estate team; ex-Vanguard head of distribution joins LGIM; Sanne names Singapore head; and more
Three children in Hong Kong have so far died with flu-like symptoms, and another child has just been admitted to the intensive care unit in a hospital. Citi notes that on March 12 alone, 23 schools have been affected, with an additional 184 persons getting the virus. In less than a month, about 84 schools in Hong Kong already have been affected, the bank adds.
This flu scare, though so far contained among the schools affected, has brought back memories of the deadly Severe Acute Respiratory Syndrome (Sars) that hit Hong Kong in 2003.
The outbreak could potentially affect the home-viewing activities of homebuyers, resulting in a more quiet market, according to Tony Tsang, a property analyst at Citi. Together with continued weakness in the stockmarket, transaction volume in the secondary market could slow further in March. Sars had a crippling effect on Hong KongÆs property market, which took many months to recover.
ôWith these added uncertainties, bullish expectations of property price increases and transaction volume now built into earnings estimates might not be finally realised, leading to downside in earnings,ö Tsang writes in a report.
The outbreak is adding to CitiÆs sell recommendation on Sun Hung Kai Properties and Sino Land. The bankÆs top pick among the Hong Kong developers are Kerry Properties, which is now trading at 44% NAV discount, and Hang Lung Properties, which has a strong track record of timing the property market.
Tsang has been cautious on the property market in Hong Kong because of increased property supply over the past few months. He notes that supply in the secondary market has increased remarkably with an increasing amount of homeowners and investors releasing their holdings into the market. For example, the amount of units put onto the market for sale in the top 10 benchmark housing estates in Hong Kong has now risen by 29% compared with February levels. Meanwhile, transaction volumes have slowed and individual sellers have softened their asking prices, he says.
Financials and healthcare have been spotted as promising sectors, while several tech IPOs are on the way, including a $2.2 billion fintech firm and a GIC-backed e-commerce startup.
A strong recovery in the Asia Pacific private capital markets in 2021 sets up favourable hiring and compensation trends.
The $95 billion Korean savings will set up a separately managed account for real estate debt investment early next year in order to shorten decision-making and help it win deals in a crowded market.
The fund's 29.6% returns marked its best ever and exceeded its reference portfolio, which has 80% allocated to equities, by 1.73%.