New | Money buys Chinese tenants the cachet of the Central address
Increasing number of Chinese companies in Hong Kong changed traditional tenant portfolio in Central, which was once dominated by MNCs, foreign financial institutions and professional firms
There is one gap that Chinese companies can quickly narrow with their foreign counterparts; all it takes is capital, lots of it.
Over two decades, cash-rich Chinese companies have moved into coveted addresses in Central, becoming the new landlords, tenants, and neighbours to Goldman Sachs, Hong Kong Exchanges & Clearing, BlackRock and the Bank of America-Merrill Lynch.
Since Hong Kong returned to Chinese rule in 1997, one-tenth of Central’s prime office space is now occupied by Chinese companies and financial institutions. In doing so, they have also jacked up prices in the world’s most expensive office market to new heights.
China’s ongoing financial deregulation and Beijing’s call for Chinese companies to “go global” have driven ambitious mainland firms to expand in Hong Kong, where it is often the first port of call for their global financial transactions.
“Most of the companies are coming with the same purpose: outbound financing and investment, for example trading on Hong Kong stocks,” said David Ji, Greater China head of research at property consultancy Knight Frank.
