Large U.S funds are investing in Hong Kong estate market to enjoy the higher return on the expectation of economic growth in China, instead of speculating on the currency, according to NY times.
George Soros, one of the wealthiest "fund managers" and the guy who are famous at speculation of the currency told the reporters at the World Economic Forum that the deflation in China is not bad because " the people got the goods cheaper"
Were all they said true or not? Hmmm, it remains to say. The Hong Kong estate market has already boomed too enough for the common people to buy the house themselves. The employee's salary grow much slower than the growing of the estate price. I am not a estate expert, but what I could see is that many local friends can't afford to buy houses themselves. I think it is simple to know the market from the supply and the demand. Soros may be right that the deflation in China is good for people to buy goods, but it is not the enough reason for the fund managers not to speculate, including Soros himself.
The ING fund(One of the largest funds in U.S) manager said that he consider Sun Kung Kai as one of the best estate companies in Hong Kong. He thought the stock was trading at a 10 percent discount to the value of the properties owned by the company. What I want to know is that if he lost money in the failure of investing in HK Reits several weeks before.