Hong Kong-Shanghai new direct share trading rules lured Chinese firms to expansion

And they're starting to expand aggressively.

Leasing activities in Central gained momentum in 2Q 2014, as new rules which allow direct share trading between Hong Kong and Shanghai lured mainland securities, banking and finance enterprises to expand their footprints in Hong Kong.

According to a research and forecast report from Colliers International on 2Q 2014, the growth of Chinese corporates in these sectors played a major part in redefining the market.

Further, it remained the key driver of demand for office space with many of these firms expanding aggressively.

Here's more from Colliers International:

Notable recent leasing activities which are demonstrative of this trend include:

China United Credit Finance (UCF) Asset Management, committed to a new lease of more than 22,000 sq ft in Two Pacific Place, relocating from their existing 3,400 sq ft premise in Hutchison House;

Shanghai Pudong Development Bank took an additional floor of about 13,000 in Bank of America Tower for expansion;

Guosen Securities took a whole floor of about 24,000 sq ft in Two International Finance Centre. The firm will relocate from their existing two premises in Sheung Wan comprising a total of approximately 14,700 sq ft.

Colliers View: We project that there will be further demand from second-tier financial institutions as the "Shanghai-Hong Kong Stock Connect" materialises and trading volumes gather momentum.

Occupier demand remains focused on maximising efficiencies in terms of cost and staff: space ratios.

Low vacancy rates and lack of new supply continue to make life challenging for occupiers considering relocation.