China’s decision to introduce a highly contentious national security law for the city will further exacerbate the political risk of investing in and operating out of one of the region’s major financial centers.

Regulators have set the draft guidance of a pilot program. But those hopeful a first batch of REITs can be rolled out in the third quarter should curb their enthusiasm.

It is critical for private real estate equity investors to keep a close eye on what is occurring in the debt capital markets to best understand pricing nowadays, writes Justin Curlow, global head of research & strategy, AXA Investment Managers – Real Assets