S-REITs poses risk to China

The expansion of the Singaporean industrial real-estate investment trusts (S-REITs) into China poses a number of business risks.

The competition for industrial properties in Singapore is intensifying, and the S-REITs' growing risk appetite and the low interest rate environment have only exacerbated the competitive pressure.

In addition, a large supply of new industrial properties opening up over the next two years may limit rental growth in the medium term.

In the case of China, the country's financial, tax, and legal frameworks are still in their infancy, which could have a number of negative ramifications, such as the regulatory risk related to tax policies on profits, the enforcement of lease contracts, and land ownership issues, as well as foreign-exchange risk for the repatriation of capital.

In the case of China, the country's financial, tax, and legal frameworks are still in their infancy, which could have a number of negative ramifications, such as the regulatory risk related to tax policies on profits, the enforcement of lease contracts, and land ownership issues, as well as foreign-exchange risk for the repatriation of capital.