Here is a list of the day’s latest China real estate news collected from around the web:
Hong Kong property tycoon Li Ka-shing has been selling his assets in mainland China, with Hutchison Whampoa and Cheung Kong Holdings recently announcing plans to sell off a large shopping mall in Guangzhou, the Shanghai-based National Business Daily reports.
The two companies, both owned by Li, announced that they will sell their respective 50% stake in Metropolitan Plaza in Guangzhou’s Liwan district to an offshore company called GCREF Acquisitions 22, for HK$3 billion (US$390.7 million). The deal is scheduled to be finalized on Nov. 29.
Overseas property investment by Chinese firms increased by 600 percent over the past three years as investors and developers looked for capital security and portfolio diversification outside China.
Chinese firms increased their overseas real estate investment from $900 million in 2010 to $5.6 billion in 2012, according to research from Savills China. The move into foreign property markets began with individual investors looking for residential properties and moved to institutional developers, the firm says.
Chinese shopping mall developer SZITIC Commercial Property Co. plans to hold an initial public offering in Hong Kong that could raise as much as US$1 billion, people familiar with the matter said Tuesday, following recent gains in developers’ share prices.
SZITIC joins a growing list of companies planning or conducting big IPOs in Hong Kong, once the world’s top IPO venue. Chinese milk producer China Huishan Dairy Holdings Co. began taking orders on Tuesday for an offering expected to raise up to US$1.3 billion, which would make it the city’s largest IPO in four months. Meanwhile, China Cinda Asset Management Co., which buys bad loans from the country’s banks, is planning a US$2 billion IPO later this year.
China’s property market is unlikely to take a hit from tighter liquidity when the Federal Reserve starts to taper its bond buying program, said Wang Jianlin, chairman of Dalian Wanda, a commercial property-to-karaoke-outlet conglomerate, and also China’s richest man according to Forbes magazine.
“The tight liquidity will push up interest rates. But I don’t think interest rates will go up by too much,” Wang told CNBC in an exclusive interview, adding China’s economy also doesn’t move in lock-step with global markets.
Jane Hu, a financial adviser from the Southern Chinese city of Huizhou, travels to the outskirts of Hong Kong to shop with her friends at least once a month. They rarely venture into the city center or stay overnight.
“It’s only a two-hour bus ride so we’re not wasting our money on hotels,” said Hu, 30, hauling around a suitcase stuffed with pharmaceutical drugs and snacks she bought in the New Town Plaza shopping mall in the Sha Tin district, about 16 miles (26 kilometers) from Hong Kong’s border with mainland China
China’s outbound direct investment (ODI) reached a record high of $87.8 billion in 2012, making the country the third-biggest outward investor last year, data released Monday by the nation’s statistics and commerce authorities showed.
The world’s second-largest economy saw growth in ODI of 17.6 percent in 2012, even though the total global ODI dropped by 17 percent during the same period according to the data, co-published by the Ministry of Commerce, the National Bureau of Statistics and the State Administration of Foreign Exchange.
“China has always had excess industrial production capacity, and Chinese businesses have been looking for investment opportunities overseas,” said He Weiwen, co-director of the China-US-EU Study Center under the China Association of International Trade.
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