Link REIT surges 6% on potential inclusion in Shanghai-Hong Kong Stock Connect

Link Real Estate Investment Trust (REIT) (00823) experienced a notable intraday increase, with its share price rising by over 6%. This surge was driven by the potential inclusion of REITs in the Shanghai-Hong Kong Stock Connect and Shenzhen-Hong Kong Stock Connect, which would facilitate easier access for mainland Chinese investors to Hong Kong-listed REITs. The announcement was made during a press conference held by the State Council Information Office, where the Chairman of the China Securities Regulatory Commission, Wu Qing, highlighted the possibility of including REITs in these stock connect programs.

The potential inclusion of REITs in the stock connect programs is viewed as a favorable development for the real estate investment sector. It would offer mainland Chinese investors more investment choices and could potentially enhance the liquidity and valuation of Hong Kong-listed REITs. This news has also generated interest in Link REIT, which has recently launched a fund management business. This initiative is seen as a strategic move to diversify its revenue streams and capitalize on the increasing demand for real estate investment products.

Link REIT has recently appointed Steven Bass as the investment director for its private equity business, lrep, in Japan. This appointment aims to drive business expansion in the region. In February, Link REIT established a private equity fund management platform, marking a significant step in its "Link 3.0" strategy to diversify its income sources and expand its asset management business. The potential progress in Link REIT's fund management business or the mutual access mechanism for REITs could serve as catalysts for its stock price.

Ask Aime: What's driving the surge in Link REIT's stock price?