Second-quarter fund closes indicate a rise in capital-raising for Asian property and infrastructure, but are a fraction of the amount raised for European infrastructure and North American real estate.
The industry welcomes government plans to sell existing assets and reduce barriers to entry that prohibit pension funds from playing a greater role in infrastructure financing.
Asset owners are being tipped to boost exposure to infrastructure and real estate from a low base, but with such strong demand for scarce assets, overbidding is a risk.
As banks cut lending, local governments in China are increasingly using alternative sources of financing, such as trusts. That is storing up trouble, say market participants.