Hong Kong's Securities and Futures Commission SFC, yesterday revealed the results of its two-month period of market consultation on the development of a cross-border reit market. As a result, new reits will now be able to get authorization and reit managers can apply for licenses. The move is likely to kick start Hong Kong's moribund reit market.
As a result of the consultation, the SFC has announced a few new terms under which the products can be launched. Firstly, the SFC has set the maximum gearing limit of Hong Kong authorized reits at 45%, 10% higher than Singapore's level of 35%. In Japan, Australia and the US there are no...
