PART 2: The Capital

R E S E T 2 0 2 2

PA R T 2 : T H E C A P I TA L

ALTERNATIVE ASSET CLASSES IN CHINA

GEOGRAPHICAL DIVERSIFICATION The region’s emerging markets offer attractive growth opportunities. Among these, India and Vietnam are currently leading investor interest, with the former more focussed on the office sector and the latter on the industrial sector. However, given the expansionary nature of these markets, as well as others in South East Asia, we have seen and will

continue to see strong growth in all sectors. As a corollary to this, Singapore plays an important role and is likely to receive an indirect boost given its geographical position and central connectivity to this sub-region. For some investors, especially those lower on the risk curve, Singapore offers a proxy for investing in Asia’s emerging markets growth story.

Mainland China offers an attractive opportunity across a range of emerging sectors. Investors are now becoming increasingly granular in their approach to identify future growth. With this, while mainstream sectors will continue to attract interest, diligent investors are beginning to prioritise alternative sectors to get ahead of the curve. Within the industrial sector, cold chain logistics has been identified as an area that needs significant development to meet future needs of the population. Similarly, life sciences is an emerging sector that has been targeted for ongoing government support through such policies as “Healthy China 2030” and the commensurate increase in access to healthcare insurance. The living sector in Greater China is also gaining traction with increasing international investor participation in serviced apartments or hotel conversions. With the current restructuring of China’s property market, more people are becoming increasingly willing to rent, boosting demand in the rental housing market

FIGURE 3: IN WHAT ORDER DO YOU PRIORITISE INVESTMENT IN THE FOLLOWING EMERGING MARKETS?

1st

2nd

3rd

4th

5th

6th

India

Vietnam

Indonesia

Thailand

Malaysia

Philippines

0%

20%

40%

60%

80%

100%

% of respondents

Source: Cushman & Wakefield

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