BlackRock sees investment opportunities in China, but not Hong Kong
BlackRock said that it is ready to look for real estate opportunities in the mainland of China as the economic climate takes its toll, but it will not invest in Hong Kong as it is too early in the interest-rate cycle. John Saunders, BlackRock's Head of Asia-Pacific real estate said, "as the economy slows and sellers are more willing to trim prices, it makes sense that it becomes quite an interesting market for us". The recent devaluation of the yuan is very attractive for foreign investors. However, Hong Kong's home prices could fall as much as 30% by 2017 as interest rates rise. "I think everybody should be worried about Hong Kong" said Saunders. 

Labourers work on a new residential complex in Beijing in this file photo. The private equity arm of BlackRock is ready to increase its exposure to Chinese commercial real estate. Photo: Reuters