Various signs indicate that although domestic real estate regulation is still continuing to exert force, overseas investors are still interested in China's huge real estate market, and the pace of deployment in the Chinese market is accelerating. The industry believes that the strength of foreign PE (private equity investment) giants and domestic developers have solved the urgent need for developers to lack funds, but it is more likely to weaken the regulatory effect of tightening money in the medium and long term.
The recent actions of international giants are attracting everyone's attention: US PE giant Blackstone officially reached an agreement with Hong Kong's large real estate developer Yingjun last weekend, agreeing to provide financial support for its residential development project in Dalian, Liaoning; The giant Mapletree Group plans to launch a fund focused on Chinese real estate projects in the next 6 to 12 months based on investment in Shanghai, Beijing, Guangzhou, Xi'an and other projects. The fund size is about 500 million to 1 billion US dollars; According to sources, Pacific China Real Estate is raising its first RMB fund, which is expected to be successful and launched before the end of the year.
"This is a very important trend. As early as 2001 and 2002, many funds entered the East China market, but now more giants are coming in." Xu Feng, director of Midland Realty National Research Center, said. A recent research report from Midland Real Estate predicts that the United States and Japan have recently increased their money supply to cope with a new round of economic downturn, and the possibility of a counterattack by international hot money has increased.
Xu Feng said that many foreign institutions' judgments on the Chinese real estate market are roughly the same as those of domestic analysts. In the long run, the Chinese real estate market will show a trend of rising volume and price, and regulation is a short-term behavior. Compared with developed countries, China is still a growing market with many opportunities. As Wang Zhaorong, executive director of Pacific China Real Estate, said, in the long run, the rising consumer demand brought about by the population growth, the acceleration of urbanization and the improvement of the quality of life of the middle class will make China's real estate market have good room for development. At present and for a period of time in the future, Pacific Real Estate Fund pays more attention to the opportunities of second- and third-tier cities, and is more inclined to carry out joint development with domestic high-quality developers at the level of real estate residential projects.
In the context of credit crunch, in Xu Feng's eyes, bundling with developers is an important channel for foreign capital to enter the real estate market. According to data from the National Bureau of Statistics, the growth rate of the “domestic loan†part of domestic real estate development funding sources has fallen sharply, while the “utilization of foreign capital†part has risen rapidly. Since May 2009, the year-on-year growth rate of foreign capital in real estate development funding sources has been negative, and from June 2010, the year-on-year growth rate of foreign capital began to turn positive and showed rapid growth. In June alone, the use of foreign capital reached 8.1 billion yuan, exceeding the 7 billion yuan combined in April and May. "For developers, this approach is not only conducive to solving the bottleneck of funds, but also achieved a strong brand joint, resulting in one plus one greater than two effects." Xu Feng said.
For foreign-funded PE, under the background of RMB appreciation, it can not only share the asset appreciation brought by RMB appreciation, but also obtain rich investment returns. Pacific China Real Estate Fund's financial statements show that from its establishment in late 2007 to the end of 2009, its net asset appreciation rate was 30%; and Blackstone's 2010 second quarter report showed that the value of its real estate investment portfolio in China increased by 19%.
However, just as both sides of the same coin, when more foreign PE giants and domestic developers actively seek a "win-win", some industry insiders began to worry that the entry of foreign capital will greatly ease the current situation of developers' tight capital chain. In turn, it will affect the effect of current real estate regulation to a certain extent.
In this regard, Xu Feng believes that the impact of the current large amount of foreign investment in PE on the current real estate regulation can be divided into short-term and medium- and long-term analysis. In the short term, from the end of 2010 to the first half of 2011, there may not be too obvious and direct impact. In the medium and long term, the tight financial relationship between the two will reduce the dependence of developers on bank loans to a certain extent, and then, the effect of regulation through tightening the money may be weakened to a certain extent. "In fact, there is now a sign that the government's ability to restrict loans is getting weaker."
A research report by Midland said that the rise in volume and price was only 4 months after the introduction of "the toughest regulatory policy in history", which is tantamount to challenging the bottom line of regulatory policies. In view of the fact that the effect of tightening credit may be gradually weakened, Xu Feng believes that the next biggest possibility is to liquidate the taxes and fees that have been levied and undercollected. Under pressure, corresponding tax policies may be introduced in mid-2011, such as the introduction of property tax or the expansion of the scope of property tax collection.
The above information source "Venture Investment" is authorized by the China Venture Capital Research Institute (CVCRI) to publish it. All rights reserved. Please indicate the source when reprinting. For more information, please click download to view all articles.
For more information, please refer to Guotaian Financial Education Group Guotaian Education Service Network Contact Phone 400-609-6665 800-999-3099
E-mail:
Various products of DVD Cases, providing product images and basic parameters with each DVD Cases and DVD Cases; We are a 12 year professional Chinese manufacturer of DVD Cases, and look forward to your cooperation! my whatsapp is the 0086-13790846651
Long Single/double DVD case serie
dvd case,dvd box ,dvd cover
Shantou Yupeng Cdian Industry Co.LTD , https://www.headsetswireless.com