Open AccessInternational Real Estate Review
Author(s) -
Charles Ka Yui Leung,
AUTHOR_ID,
Edward Chi Ho Tang,
AUTHOR_ID
Publication year - 2015
Publication title -
journal of the asian real estate society
Language(s) - English
Resource type - Journals
ISSN - 1029-6131
DOI - 10.53383/100193
Subject(s) - real estate , china , initial public offering , real estate investment trust , asset (computer security) , financial economics , stock (firearms) , stock market , business , economics , finance , geography , context (archaeology) , computer security , archaeology , computer science
This paper argues that since China closes her asset markets, investors turn to Hong Kong instead. The initial public offerings (IPOs) of Chinese firms in the Hong Kong stock market and the local housing market of Hong Kong improve the prediction of each other, as they may serve as a coordinator of herds among investors. Alternative explanations such as the "production conjecture" and ¡§underlying factor conjecture¡¨ are found to be inconsistent with the data. Our results are also consistent with the increasing importance of Chinese tourists in the world. Directions for future research are also discussed.