As early as 2009, commentators have been asking whether Hong Kong property is a bubble. Since then, the debate has continued as, apart from a brief pause in the second half of 2011, prices have continued to climb inexorably upwards; despite efforts by the Hong Kong government to cool the market. Prices have more than doubled from their recent low point at the end of 2008. In fact, for most people, whether or not the property market is a bubble is not in doubt. The question now being asked is when the bubble will burst.
I have recently increased my position in the subscription shares of the Impax Asian Environmental Markets investment trust (ticker: IAES), having sold part of my shareholding in March (see here and for my earlier research here). My most recent purchase was on 14 May at a price of 5.95p. The decision to increase my shareholding followed the announcement on 1 May of plans to wind up the trust. This fundamentally changes the nature of the subscription shares, although it also provides an attractive, short-term investment opportunity.