Thanks.  The report by E&A is certainly useful.

It is interesting to note that Fortune is listing in HK by introduction, which means they will not be issuing additional new shares. Unlike most other Singapore listed companies who seeks listing in HK, new shares were issued which dilutes the share value held by existing shareholders. 

Hi,

Hong Kong Reits generally have done pretty well over the past year, recovering some 64.5% (2nd highest worldwide behind Singapore's 85.6%) based on the report by E&A http://www.ey.com/Publication/vwLUAssets/Global-REIT-report-2010-Against-all-odds/$FILE/Global_REIT_report_2010_Against_all_odds.pdf

In terms of number of listings (22 vs 7) and market capitalisation (20.6B vs 9.5B as at Dec 09), S-Reits is considered a more mature Reits market than H-Reits, although corporate governance on H-Reits is considered stricter.

The proposed listing by intro will be H-Reits market's first Reits IPO since Jun 07. In terms of pricing, only 1 H-Reit (The Link) is trading above its offer price, even though its dividend yield is unimpressive at around 4 - 5%. I believe Fortune's move is very smart given that the H-Reit market is devoid of quality Reit that is trading above water. Fortune's dividend yield also compares well with the H-Reits. I am confident that Fortune will be well received. This Fri's AGM should be able to give some guidance on what will be the listing price.  

oops, sorry for the late reply. logged off when i posted yesterday. yeap, it is denominated in HKD.

Just another point to share with you guys.

Trading in HKD is a GREAT ADVANTAGE!!!

Looking at the current exchange rate, 1 SGD is equivalent to around 5.56 HKD. By comparing to a 5 year chart of the SGD-HKD conversion, the peak is 1SGD to around 5.7HKD. This means that the exchange rate is considered VERY HIGH at the moment.

The lowest exchange rate is around 1 SGD to around 4.6HKD. This represents a GAIN of around 20% in forex gain. Currently, the exchange rate is so HIGH is probably due to the loose monetary policy in HK. There are probably 2 reasons which could explain why HKD will appreciate.

The first one is that all of us know that the overall monetary policy in HK is quite loose nowadays. Interest rates are low and the government does not want to stifle the economic growth by allowing the currency to appreciate too much. As the signs of the economy stabilizing become more apparent, the government will DEFINITELY have to RAISE interest rates to prevent INFLATION which is another BIG issue for the government now. Property prices are sky-high in HK now and the government will eventually curb it. So when interest rate increases, HKD will GO UP and economy stabilizes.

The second reason which will explain why HKD will go up is probably due to the influence of her big brother, China. China is facing HUGE pressure to allow the yuan to appreciate. Personally, i think that the yuan is undervalued. The value of the yuan is not justified by the booming economic growth of China (although I think that China is purely using its reserves to prop up domestic spending). China wants to ensure that it will always have to edge in exports and the value of the yuan is decisive in this aspect. China faces HUGE INFLATION right now, with property and food prices SHOOTING up high. China must eventually allow the yuan to go up so that the chance of a social unrest (due to lower spending power of the Chinese) will be minimised. Even if it refuses to remove the peg to the USD, I personally reckon that US will step up measures to ensure that goods from China will not have a continued advantage (in terms of pricing) by imposing higher taxes on Chinese goods. This is definitely not what China wants as Chinese exports will not go up and living standard of Chinese will go down due to the value of the yuan. The macroeconomic balance must be achieved across the globe as the other countries have been too passive on China for the past 2 decades, allowing China to run up excessive reserves while they are running huge fiscal debt. Thus, I believe that China will have to bow to pressure eventually to raise the value of the yuan. HK, being closely associated to China will probably follow suit.

These are just some of my personal opinions. Please correct me if I am wrong.