G'day all - dear tom, you sez "... Sell!!!!" Too bad I ve neither long nor short position [no directly anyway] in HK Inc.
While I agree with a lot of your analysis, I am not totally convinced of your conclusion either. I agree that an substantial portion of the underlying values [and valuations] of HK equities is the properties held. And indeed, HK govt has derived an substantial amount of revenues from her land sales. However, housing shortage is a real issue in HK. So, as there is a temporary halt of land sale and slowdown of development, coupled with a decline in price, supply and demand will catch up. Additionally, HK has been building a lot of infrastructures. Despite the *new airport syndrome* <g>, the new airport will enhance the import/export capacities. It is said that one can check the luggage in in central district and then take the high speed shuffle to the airport. How many airports in the world can do that? HK has been laying down hi speed highways connecting the region as well as making fast connection to China proper. These are valuable real estate [not unlike the highway system built in the US back in the 50s in terms of potentials.] To make a leap of judgement <g>, HK will be the bridgehead for China, it seems to me that thinking HK Inc is merely a parcel of prime RE in the heart of downtown district misses the point that the activities associated with the area
best, Bosco |
