It’s undeniable that China’s economic revival post-pandemic has been less than stellar. The recent turmoil in the real estate sector has further complicated the situation, prompting foreign investors to offload Chinese stocks, a trend that persisted throughout 2023 and 2024. Hong Kong REITs (Real Estate Investment Trusts), heavily anchored in Hong Kong and China, faced intense selling pressure, experiencing declines even steeper than those during 2022 and 2023.
For investors in Hong Kong stocks, the journey has been nothing short of tumultuous since the protests erupted in 2019. HK-REITs, in particular, have taken a considerable hit, which has dampened the enthusiasm of many who invested in them. Yet, you might find it intriguing that if you had ventured into these REITs at their initial public offerings, the picture might look different. For those interested in REITs or dividend-centric investments—which are plentiful in Hong Kong—it’s crucial to consider the dividends you’ve garnered when evaluating your total returns. This approach provides a more comprehensive view of their actual performance.
