China and Hongkong
Professor Forum
Hong Kong and China
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Name Wu Xiaoyan Student ID 52759755
The Integration of China and Hong Kong
Summary
Mainland Chinese come to Hong Kong (mentioned as HK below) to invest property for two reasons since 1997, one is to earn money and another is to migrate. But the policy that non HK people can migrate by investing property was canceled in 2010. Nevertheless, does the trade of real estate will be affected by the cross culture and business trades to be done in near future?
Challenge analysis
Most people suppose that the quality of mainland Chinese who will invest property in HK tend to decrease for the policy that non HK people can migrate by investing property was canceled, but the ratio that mainland Chinese of real estate buyers peaked in the second quarter in 2011 which the policy had be canceled for a half year. At the same time, the price of real estate experienced a steady growth. What are the other reasons for this situation?
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Figure 1 Ratio that mainland Chinese of real estate buyers from 2003 to 2011.
Mature investment environment
First of all, real estate is one of the most important mainstay industries of HK. Mainland Chinese get more information and channels to get familiar with this market since mainland China and HK have been getting more integrated from 1997. In 2011, Chinese investors under a very strict policy of invest property as the government tends to keep the price of estate down. They need to find some new markets and HK is a convenient and excellent place in their opinions for its mature development in property investment. Besides, the financial industry in China is immature so the investors consider even if they put the money in the bank they tend to under a potential inflation risk. They desire a mature market for maintaining value of money and many property companies in HK give them more discounts for selling more
Hong Kong and China
[pic]
Name Wu Xiaoyan Student ID 52759755
The Integration of China and Hong Kong
Summary
Mainland Chinese come to Hong Kong (mentioned as HK below) to invest property for two reasons since 1997, one is to earn money and another is to migrate. But the policy that non HK people can migrate by investing property was canceled in 2010. Nevertheless, does the trade of real estate will be affected by the cross culture and business trades to be done in near future?
Challenge analysis
Most people suppose that the quality of mainland Chinese who will invest property in HK tend to decrease for the policy that non HK people can migrate by investing property was canceled, but the ratio that mainland Chinese of real estate buyers peaked in the second quarter in 2011 which the policy had be canceled for a half year. At the same time, the price of real estate experienced a steady growth. What are the other reasons for this situation?
[pic]
Figure 1 Ratio that mainland Chinese of real estate buyers from 2003 to 2011.
Mature investment environment
First of all, real estate is one of the most important mainstay industries of HK. Mainland Chinese get more information and channels to get familiar with this market since mainland China and HK have been getting more integrated from 1997. In 2011, Chinese investors under a very strict policy of invest property as the government tends to keep the price of estate down. They need to find some new markets and HK is a convenient and excellent place in their opinions for its mature development in property investment. Besides, the financial industry in China is immature so the investors consider even if they put the money in the bank they tend to under a potential inflation risk. They desire a mature market for maintaining value of money and many property companies in HK give them more discounts for selling more