News broke out early this morning that China based EC World Reit has requested for voluntary suspension. With the Singapore investing community's preferance on Reits, some people are naturally still invested in this Reit and disappointed with the suspension of their hard earned monies.
Reits being highly leveraged businesses are certainly not spared from the rapid rise of high interest rates. Coupled with China trying to rebalance their economy for the future, slowing growth and deflation pressures in the property segment, more victims and pain should be forthcoming. The search for high yield % returns should not be at the expense of capital loss. Fundamentally strong businesses should be the First selection investment criteria!
For those who are vested in EC World Reit, take some time to mourn and learn from this painful lesson. Afterward, let it be another stepping stone to your investment journey. Jiayou! Gambatte! Fighting!
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