In 2011, the national security to launch 10 million housing units, there will be more than half of the housing by the Government, in the context of this regulation, the domestic real estate realize that transition time has come. Many private or state-owned nature of the business began operating the focus from residential to commercial real estate.
However, their speed has significantly lagged behind the foreign institutions. Since February 2011, across the oceans, the layout of rival China to accelerate the commercial real estate frequently. This or "buy the dips" prelude. The record shows from the Commerce Department, as of March 24, only in March or new capital increase of foreign real estate companies blowout up to 39.
Wanton purchase of foreign-funded commercial real estate
DTZ Debenham Tie Leung recently released report shows that the global real estate investment in 2011 is expected to be 104 billion U.S. dollars global funds to invest in Asia real estate, representing the amount of money in mid-2010, an increase of 45%. Among them, China's focus on commercial real estate as capital flows.
Prior to that, there are forecasts that the real estate company mergers and acquisitions wave of the outbreak areas in the residential market. This argument is mainly from China, major efforts to control the real estate market. Recently it has been the frequent foreign mergers and acquisitions are leading another trend.
The data from the Shanghai Assets and Equity Exchange shows that in the end of February, a week, the Shanghai property market, real estate transactions worth more than billion, the amount of new real estate projects are also listed living in the first place. Foreign M & A activity is also implied generous of them.
Among them, the "Shanghai International Group Co., Ltd. 100% interest in Plaza" compelling the transfer of project completion of the transaction. Holder of the project, a state-owned enterprises in Shanghai, the acquirer is a company in Singapore, the final price of more than 310 million yuan transferee.
A foreign real estate investment on the "China Economic Weekly" home note: "At present, the price of commercial real estate in China is relatively low, and available resources. At the same time, some foreign institutions optimistic about the future expectations of RMB appreciation." He said that if To send a lot of money into the Chinese mainland to have to find a safe area. The commercial real estate prices low, but also from policy implications, more stable.
It is understood that foreign investment in domestic commercial real estate there are three main channels: the first non-resident institutions and individuals to invest in real estate; the second is through direct investment of foreign capital into real estate; third is the way of foreign investment into real estate by foreign debt . In early March, foreign investment into the real estate market trends to accelerate the Chinese financial authorities have been alert. People's Bank of China, Shenyang Branch in charge at the central bank governor Wang Shun parameters magazine "China's financial" on the author, suggested to strengthen the inflow of foreign capital over the management of real estate industry.
Local enterprises to accelerate to catch up
Seeing the commercial real estate depression gradually becomes suction gold, local housing prices have accelerated the layout of commercial real estate.
March 22, investment real estate to meet with investors, chairman Lin Shaobin said in the future will be more concerned about the commercial real estate. He Jian, general manager of China Merchants Property Asia also believe that the future development of China will usher in the golden age of commercial real estate, "so many developers choose to do some commercial real estate business to try and break through, it is actually great minds thinking alike, is also a trend law dictates. "
Almost simultaneously, the Golden Group announced 2010 results in that the next 5 years, commercial real estate development will be the golden key business segments, and with the real estate finance as an important future development of golden wings.
Golden Group chairman Lingke said annuity in 2011, commercial real estate investments in one or two complex projects.
Another Hong Kong-listed mainland enterprises Olympic Park housing estate in the March 22 announcement that night, March 21, an indirect wholly-owned subsidiary of WinwickDe? Juan velopmentLimited two acquisition agreements signed on the same day to 383 million yuan of the total Pan-Pacific and the cost of access to u-lim u-lim (Kunshan) in Kunshan City, Jiangsu Province, land for the project and project site 5A 5B construction of commercial and residential properties.
In addition, Lake Properties, China Resources and other companies have cut into the different types of commercial real estate product development.
Commercial real estate has always been a conservative image of SOHO China, Pan Shiyi, chairman emerging public statement also said: "The regulation of commercial real estate will not be affected. On the market so much liquidity, there must be a reservoir. Even if it is to flow commercial real estate, pushed up the price of commercial real estate, but also with the people does not matter, because the commercial real estate investors who are not vulnerable. "
Dean Yang Hongxu Real Estate Research Institute on "China Economic Weekly" said: "The layout of commercial real estate foreign frequent foreign bodies can be seen as the expected impact of the yuan continues to appreciate. Shares of local enterprises in China M & A and project acquisitions, for their money is safe, you can let them have the expected arbitrage. "
At the same time Yang Hongxu also think that this is related to changes in the current market. "With increased regulation, commercial real estate hedge funds will flee." "Some areas of Shanghai from the current perspective, commercial real estate and residential real estate prices there still upside down situation, that commercial real estate prices are low, housing prices high. And this kinds of short-term market relations can not be changed. "
Advantages and Disadvantages of RMB appreciation
Into 2010, the international foreign exchange market for a matter of appreciation made numerous discussions and debate, and ultimately back to the appreciation of the RMB up several concerns: "Why the renminbi will appreciate, after the revaluation of the renminbi what appreciation of the renminbi, where the pros and cons, how to find the reasons for appreciation of RMB exchange rate RMB appreciation will have benefited stocks which, at the same time appreciation of the hazards associated with what. " Reflection off the total word, or appreciation of the renminbi and the national economy and investors has tangled with the ambiguous what?
First let us understand what the RMB exchange rate. Exchange rate also known as "foreign exchange market price or exchange rate." A country's currency exchange rate of the currency of another country, is one currency expressed in another currency. The name of the different countries of the world currency, currency varies, so the currency of a country's currency for other countries to set a rate, that is, the exchange rate. The RMB exchange rate is the rate of the currency of another country.
Definition of RMB appreciation
Evaluation of the Chinese interest rate trend of the yuan, or more appropriately interpreted, that the spread of two different currency deposits expected to be equivalent to the percentage change in the exchange rate. Popular means is that the Chinese people's money worth, such as in the international market (only in the international market to reflect the increased purchasing power of the RMB) on the original one yuan can buy units of goods, RMB appreciation will be able to buy more after multi-unit goods, and the RMB exchange rate appreciation or depreciation is reflected directly. RMB appreciation is the most popular words of the purchasing power of the yuan increased. In other words, you have to use a dollar for 8.27 yuan can now only for 6.77 yuan.
The benefits of RMB appreciation
1, increase our purchasing power, equivalent to foreign goods hit seven sold us the price discount for each purchase. 2, the same reason our country to foreign investment or purchase of foreign assets will be cheaper than before. 3, an RMB appreciation would lead to economic circles that the yuan will appreciate, resulting in a lot of money into China, which more than offset increased investment costs due to the reduced amount of investment, but also greatly exceeded. 4, due to the advantages of low labor costs were offset by appreciation of the RMB, RMB appreciation can also promote China's industrial structure from labor-intensive high value-added to the main direction of transformation. 5, the RMB appreciation can lay the foundation for the yuan to the world, after the yuan appreciation will bring confidence to people of the world, after the RMB as an international currency will be a matter of course to do. 6, directly improve social welfare, because the yuan is purchasing power, all aspects of a corresponding reduction in the price 7, in the short term effects are beneficial. After all, under the same monetary value, people can buy more things. But in the long run, is not conducive to China's economic development. The most obvious is reflected in the above mentioned import and export trade.
The drawbacks of RMB appreciation
1, the country's foreign exchange reserves with the appreciation of the consequential loss. 2, the country's exports by some because of the impact of RMB appreciation is the appreciation of the export because the yuan, relative to foreign importers in terms of cost increases, the decrease in exports. May be because of low labor costs of Chinese goods in 2030% of the RMB appreciation will not greatly affect the competitiveness of Chinese goods. Can be reduced due to the appreciation of the value of exports (not necessarily) will be recovered by the appreciation of foreign exchange due to the amount of fill, China's foreign trade will not change much. 3, will to some extent affect the export of labor services in China, a small degree of foreign investment (the same investment of RMB appreciation because of increased investment costs.) 4, due to appreciation of the renminbi, and enhance the purchasing power of the yuan would lead to increased imports, reduce our trade deficits. (This is what we need) 5, the bank increased bad debt, bringing the unemployment problem, FDI (foreign direct investment) decline, deflation occurred in rural areas, the external role of the renminbi weakening, China's WTO commitments is difficult to achieve, and then bring Southeast Asia's financial instability, and the Asian economic slowdown. 6, the RMB appreciation will inhibit China's exports. Moreover, China's main export is the United States. The trade deficit in recent years, the United States belongs. Appreciation would slow down the situation. In contrast, stimulation of foreign currency values will rise in imports to China.
Ceramic sanitary ware how to deal with the impact of RMB appreciation
China is a major exporter of ceramic sanitary products, exchange rate fluctuations will naturally touch the nerve to the bathroom export enterprises. For sanitary export enterprises, RMB appreciation, the same price of the product in exchange for U.S. dollars or euros less and less. Tangshan Huida Group, the relevant responsible person said that the RMB appreciation on the benefits of group influence. Benefits of the Group is the export-oriented enterprises, exports account for more than 50%. Fluctuations in the exchange rate will directly affect the benefits of group revenue and profits. Such as the exchange rate fell by 0.2 million, that will affect more than ten million yuan of sales revenue, or a profit. Long, general manager of Qiurui bathroom are open, said that exports would account for about Dulong bathroom 70% of sales. Appreciation of the RMB since the time of export enterprises sanitary conditions are not too optimistic about the export of most enterprises are subject to the dollar, the depreciation of the euro, profits have fallen, many companies are significant decline in export volume. Jomoo official said the Ministry of International Trade, export ceramics, animal husbandry than in previous years nine growth a lot, but there are some problems to face, for example, anti-dumping, technical barriers, appreciation of the renminbi, shipping prices, rising oil prices, wages, raw materials prices and other issues, resulting products are difficult to price rise, but prices can not rise significantly increase product profitability reduced.
Relevant authorities said that to cope with the pressure of RMB appreciation, start from the following three points: First, improve the export price. Second, the way to arbitrage hedge. Third, the development of new products, increase product added value. As the sanitary industry, the same only constant innovation to enhance the value and level of China to improve the technological content of products, export price increases have the space, only the possibility of increasing the profits.
