The Mapletree Greater China Commercial Trust is preparing for an added depreciation in the currency value of Hong Kong in contrast to the currency of Singapore. According to Chief Executive of the organization, Cindy Chow, Mapletree which made its entry in the Asia’s largest market in this year only is already expecting another fall in the currency value.
According to the words of Chow, “The trust is ready to hedge out up to 100 percent of dollars in Hong Kong as our forecasts show that there will be another dip in the Chinese market in comparison to the Singapore dollar.” however she didn’t explain or elaborate the reason for this forecast that predicts the weakening of Hong Kong’s currency value.
Pegged with US dollar, the currency of Hong Kong has observed a drop in its value by 4 percent with regard to the Singapore value in the month of June, thus reducing scope of profit for Singapore organizations that are working in the Chinese market. The assets of Mapletree Greater China Commercial Trust compile of the shopping center ‘Festival Walk mall’ at Hong Kong.
Being the fourth trade segment of Mapletree Invetsments Pte, the organization of Mapletree REIT is a property of Singapore based state-ownership Investment Company of Temasek Holdings Pte that upheld its currency value by 11 percent on the first day of trade opening yesterday. There was a gain of 1.5 percent of REIT to Singapore dollar 1.045 today.
Reports show that in comparison to the currency value of Singapore dollar, the currency of Hong Kong rose 0.1 percent, which is Hong Kong Dollar 6.2251. Considered as the safe investment ground among investors, Singapore currency has got the appreciation against majority of currency values over the last three annual years, helping make a profit of 12 percent in relation to the US dollar within this time period.
The Singapore’s IPO market has been dominated and influenced by the REITs in the last few years, yielding high assets which gained immense popularity even at time of low rates of interest. The REIT of Singapore has been observed to have performed extremely well in the state index of Straits Times in this current year, producing 5.2 percent in comparison to the 4 percent profit that was measured in the benchmark index estimation.
The data and information compiled by Bloomberg shows that Mapletree Industrial Trust along with Mapletree Commercial Trust have achieved advance of about 50 percent in regard to their offered prices, while on the other hand Mapletree Logistic Trust has gone up by 70 percent.
However, with the economic market of China slowing down, there is sale of shares. Official surveys reveal that there are plans of expansion in various sectors such as retail, transport and banking which were among the lowest in the last five months.