Abstract

AbstractIn this paper, I assess the significance, risk-adjusted performance, and portfolio diversification benefits of non-listed real estate funds in China and the strategic role of non-listed real estate funds in mixed-asset portfolios in China over the 2010:Q1– 2015:Q4 period. The results show that non-listed real estate funds in China provide the best risk-adjusted return among the assets classes and have very low correlation with all asset classes including China REITs, property companies, stocks, and bonds, providing significant diversification benefits to mixed-asset portfolios.