Shadow banking in Asia: Foreign versus domestic lending to real estate projects

Douglas Cumming; Grant Fleming; Zhangxin (Frank) Liu

doi:10.1016/j.ememar.2018.02.007

Shadow banking in Asia: Foreign versus domestic lending to real estate projects

Douglas Cumming
, Grant Fleming
, Zhangxin (Frank) Liu

School of Business

University of Western Australia

Research output: Contribution to journal › Article › peer-review

3 Scopus citations

Abstract

We compare the types of loans and their rates of returns for domestic versus offshore small and mid-sized private real estate credit funds. The data indicate offshore private credit funds issue smaller and subordinated loans to residential projects. Offshore lenders prefer projects in developed Asian markets, and obtain higher rates of return even after controlling for other things such as loan size, seniority, and borrower location. Our findings suggest the presence of pronounced segmentation across real estate lending markets in Asia as offshore lenders are not a substitute for domestic capital.

Original language	English
Pages (from-to)	137-147
Number of pages	11
Journal	Emerging Markets Review
Volume	35
DOIs	https://doi.org/10.1016/j.ememar.2018.02.007
State	Published - Jun 2018

Keywords

Alternative assets
Performance
Private debt
Real estate
Shadow banking

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10.1016/j.ememar.2018.02.007

Cite this

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title = "Shadow banking in Asia: Foreign versus domestic lending to real estate projects",

abstract = "We compare the types of loans and their rates of returns for domestic versus offshore small and mid-sized private real estate credit funds. The data indicate offshore private credit funds issue smaller and subordinated loans to residential projects. Offshore lenders prefer projects in developed Asian markets, and obtain higher rates of return even after controlling for other things such as loan size, seniority, and borrower location. Our findings suggest the presence of pronounced segmentation across real estate lending markets in Asia as offshore lenders are not a substitute for domestic capital.",

keywords = "Alternative assets, Performance, Private debt, Real estate, Shadow banking",

author = "Douglas Cumming and Grant Fleming and Liu, \{Zhangxin (Frank)\}",

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year = "2018",

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doi = "10.1016/j.ememar.2018.02.007",

language = "English",

volume = "35",

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AU - Cumming, Douglas

AU - Fleming, Grant

AU - Liu, Zhangxin (Frank)

PY - 2018/6

Y1 - 2018/6

N2 - We compare the types of loans and their rates of returns for domestic versus offshore small and mid-sized private real estate credit funds. The data indicate offshore private credit funds issue smaller and subordinated loans to residential projects. Offshore lenders prefer projects in developed Asian markets, and obtain higher rates of return even after controlling for other things such as loan size, seniority, and borrower location. Our findings suggest the presence of pronounced segmentation across real estate lending markets in Asia as offshore lenders are not a substitute for domestic capital.

AB - We compare the types of loans and their rates of returns for domestic versus offshore small and mid-sized private real estate credit funds. The data indicate offshore private credit funds issue smaller and subordinated loans to residential projects. Offshore lenders prefer projects in developed Asian markets, and obtain higher rates of return even after controlling for other things such as loan size, seniority, and borrower location. Our findings suggest the presence of pronounced segmentation across real estate lending markets in Asia as offshore lenders are not a substitute for domestic capital.

KW - Alternative assets

KW - Performance

KW - Private debt

KW - Real estate

KW - Shadow banking

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UR - https://www.scopus.com/pages/publications/85043313147#tab=citedBy

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DO - 10.1016/j.ememar.2018.02.007

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VL - 35

SP - 137

EP - 147

JO - Emerging Markets Review

JF - Emerging Markets Review

ER -

Shadow banking in Asia: Foreign versus domestic lending to real estate projects

Abstract

Keywords

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