China Rebounds with Real Estate

Government legislation and resulting restrictions have impacted global economies, HK and China are no exception. Three years of lockdowns, restricted travel and quarantines have taken their toll on people and businesses across Hong Kong and China.In November Hong Kong borders opened and in January, China followed suit, after COVID swept across the country, showing the global community that Greater China is open for business. Networking and in-person events are back, the 2023 ULI GBA Annual Conference returned and was well attended, many attendees from Hong Kong.

Aurex Group is currently working on China-based Real Estate roles.

Investor sentiment 2023

Off-shore investors remain cautious, rising US interest rates, global inflation, geo-political uncertainty and the recent instability in the banking sector are resulting in regional and global funds reducing their allocations for Greater China. However, low onshore interest rates and recent changes in government policy mean domestic investors are positive and continue to invest.

The continued rise of C-REITs and RMB denominated funds show how China’s real estate market evolved in 2022. The active onshore fund-raising environment and low interest rates is providing liquidity for investment and will create opportunity for investors in 2023.

The Federal Reserve recently indicated that interest rates are close to their peak and global inflation is subsiding. The IMF predicts interest rates will return to pre-COVID levels. Good news for USD denominated funds in China and further afield.

All these indicators point to an active second half of the year for onshore and offshore investors in China. Investors remain interested in logistics, healthcare and multifamily assets, while keeping an eye in commercial and hospitality sectors as the country opens up. Analysts are forecasting between RMB 250bn – 300bn of transactions in China in 2023, a significant increase from 2022.

So, what does this all mean in terms of recruitment for investors in China?

Fears of a global recession and caution in China have led to a round of redundancies in MNC’s in late 2022 and early 2023. There is a lot of talent on the market in Hong Kong and many are open to opportunities in PRC.

There is high demand for portfolio and asset managers as funds consolidate or restructure positions in Greater China. GPs are also prioritising robust portfolio management structures to keep LPs informed and happy in challenging markets.

Candidates with fund management experience and access to onshore LPs are in high demand in China and those that have been through the onshore fund management licensing process are very desirable.

Individuals that have track record of structuring and launching C-REITs and have working knowledge of the listing procedure on the Shanghai and Shenzhen stock exchange are also in high demand.

China-based Real Estate Roles

Please click directly on the roles to find out more.

Sources

Aurex Group can help

If you are a company considering hiring, we welcome the opportunity to present our services and capabilities. If you are a candidate, please check our jobs page or contact us to discuss your background, skills, and future aspirations. We always look forward to staying connected and exchanging ideas, insights, and opinions.

Owen Montgomery

Associate Director

+852 2319 4432

owen@aurexgroup.com