Who is interested in creating a real-estate related venture

As you know there is no job security anymore. I have an easy regional job, but I don't plan to fly around to make my living for the next 10 years.


I am aware that it's the forum for sharing property advice by those who are interested in this department, and I wonder if there is anyone who is also thinking of creating a property related online venture that is marketed towards to Asian market.


In short, I am currently in sales in derivatives space, had work experience in online marketing, branding and have deep understanding of mainland Chinese as Taiwanese myself ( I moved to NY/Bay Area/London/Shanghai/Manchester before HK).


I have a general idea on what to do, and I am in the process of researching the market before defining the business model, targets, and etc.

If so, why don't you drop me a mail for us to start with the communication to see if we are mutually beneficial.


I will be looking forward to your email - or surely the feedback that is constructive.

"..........sales in derivative space"...............hahahaha forgive me but I find this a real gem


I used to delve in managing "derivative cash" buying and selling "derivative properties" and making a ton of "derivative money"


but I eventually outgrew monopoly...............sigh!

A PROPERTY DERIVATIVES Market in HK?

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I assume you are talking about launching a Derivative that would allow people to hedge property prices - perhaps in the Hong Kong market.


(I was a senior person running a derivatives business for a Major global bank, many years ago - so I know something about the issues involved.)


There are several big challenges to a successful launch that will be very tough to crack.


1 / How will you hedge it?

Maybe you will try to match counterparties. At the moment, you will probably find that most people will be naturally lined up on one side of the market - the SHORT, or "Selling" side. The usual way to address this, is to arrive at a price where that market is balanced. Hence, there would likely be a forward discount in the market. Even if you can come up with a price that attracts some transactions, unless you have some "book runners" lurking in the background, you are going to have to have illiquidity, and/or very wide bid/offer prices.


2/ What index will you use?

In HK, you can probably use the Centaline Index. But you may need a license from Centaline to do that. Else, they can change their index whenever they like, and they may even consider legal action.


3/ How will you address credit issues?

Many potential users may be individual private investors. They will not be acceptable credit risks for their counterparties, unless you can get them to provide margin. That will be a tough sell, and also difficult to manage and monitor.


4/ Will there be trust in the instrument?

Many HK people were burned by "I-Kill-You-Laters", and by the Lehman's notes. So they may be very suspicious towards new ideas. Then you have the HK regulators, who may want you to provide a ton of legal opinions before they will let you do anything.


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There are more questions that I could come up with - this is just a start.


If this is indeed what you have in mind, it would be interesting to hear you answers to the above issues. If you can work through them, then it is possible that you may have something good, and of real value to the market. But it will be a ong struggle - and I know it very well.