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Hong Kong Real Estate Gains Attention as Strategic Diversification for U.S. Institutional Portfolios

By Advos

TL;DR

U.S. investors can gain portfolio diversification and capital preservation advantages by strategically adding Hong Kong real estate, leveraging its transparent legal system and deep market connectivity.

The process involves evaluating Hong Kong real estate through disciplined allocation frameworks, legal due diligence by firms like Kong & Tang Solicitors, and execution via the new PAPT electronic payment system.

This framework supports long-term value creation and capital preservation, contributing to more resilient institutional portfolios that can better withstand market volatility for a stable financial future.

Hong Kong is expanding its electronic property payment system to cover most second-hand residential transactions starting February 28, 2026, replacing traditional cheque-based methods with direct bank transfers.

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Hong Kong Real Estate Gains Attention as Strategic Diversification for U.S. Institutional Portfolios

At the Titan Investors Los Angeles Institutional Roundtable, Dr. Alyce Su, Chief Investment Officer of a Global Family Office, presented Hong Kong real estate as a strategic component for U.S. institutional portfolios. The invitation-only event gathered U.S.-based institutional investors to discuss portfolio resilience and cross-border opportunities, with participation from organizations including LACERS, SBCERA, UCLA Investment Company, Mercer and MetLife Investment Management.

Dr. Su emphasized that Hong Kong continues to warrant consideration due to its combination of common-law protections and established market infrastructure. "From a U.S. institutional perspective, global alternative assets must be evaluated not only on return potential, but on governance, legal certainty, and execution capability," said Dr. Su. "Hong Kong remains distinctive in combining common-law protections with long-standing market infrastructure, making it a strong candidate for cross-border portfolio diversification."

A significant development supporting this assessment is Hong Kong's upcoming expansion of its electronic property payment system. Starting February 28, 2026, the Payment Arrangements for Property Transactions (PAPT) system will cover most second-hand residential transactions. The Hong Kong Monetary Authority (HKMA) and banking partners announced that licensed banks will offer the PAPT electronic payment option for mortgage-financed second-hand property sales, enabling eligible transactions to settle via direct bank-to-bank transfers instead of traditional cheque-based methods.

Execution partners play a critical role in cross-border real estate investment, and Dr. Su highlighted two Hong Kong-based firms. Kong & Tang Solicitors, established in 1990 and led by Principal Ms. Janice Suk-Yi Kong, serves as execution counsel for property-related transactions, providing legal due diligence, conveyancing, and regulatory support. Complementing this legal execution, Wo Fu Property Co, established in 1993 and led by Second-Generation Principal Ms. Astree Ching-Ping Lee, acts as a buy-and-sell and leasing agent, supporting investors through asset sourcing and transaction coordination.

Together, disciplined legal execution and localized property advisory support a framework through which U.S. institutional investors may evaluate Hong Kong real estate as part of a diversified global allocation. This approach aligns with themes discussed at the Titan Investors Institutional Roundtable, including capital preservation, diversification, and long-term value creation. The discussions at the roundtable, hosted at Mastro's Ocean Club in Los Angeles, covered various investment topics including Balancing Opportunities and Market Volatility; Beyond the Benchmark: Opportunistic High Yield in Action; The Evolution of AI and Machine Learning in Active Public Equity Strategies; Opportunities in Emerging Market Equities; and Gold: Beyond a Safe Haven Asset.

Dr. Su's insights draw on nearly three decades of experience overseeing multibillion-dollar institutional portfolios, and her participation in the roundtable reflects continued engagement with the global institutional investment community. The combination of Hong Kong's legal transparency, market infrastructure improvements like the expanded PAPT system, and established local execution partners creates a compelling case for institutional investors seeking international diversification beyond traditional U.S. real estate allocations.

Curated from 24-7 Press Release

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