Chinese financial firms to boost Hong Kong's business momentum

Thanks partly to wealth management firms.

It has been noted that improving business momentum will be supported by more letting demand from Chinese financial corporations.

According to a research note from CBRE, this is in part from wealth management and brokerage firms looking to set up new offices to capitalize on the Shanghai-Hong Kong Stock Connect.

Further, Chinese companies will use Hong Kong as hub for Asia growth.

According to Rhodri James, Executive Director, Office Services, CBRE Hong Kong: “Hong Kong will see improving business momentum favorable to office demand mainly supported by demand from Chinese corporates.

Here's more from CBRE:

Despite an expected rebound in new completions of 3 million sq. ft. during the course of the year, only 15% will be available on Hong Kong Island, and not much will be used for portfolio leasing.

Secondary space will continue to be scarce and total leasable stock will remain limited. Demand for Grade A prime office will outperform other sub-sectors, resulting in an uptick in rents in 2015. An average rental growth of 5% is expected, mainly led by Central.”