With the Yuan bound (we think) to be the dominant currency and the inevitable contiuned growth of China, does anybody know of Chinese REIT's that are out there. I would invest in Chinese property but I've never been there, much less I would not be able to take care of my investment. Sachin mentioned something about BRIC investing, (Brazil, Russia, India, China) but I'm looking more into REIT's. Any info would be appreciated.
I don't know.. that is something that I'm trying to find out........ Assuming that they did, I wouldn't mind jumping on one of them.
How secure are property rights in China? I'd hate to invest in real estate that: 1. sits vacant and 2. could become a prime squatter target.
Yes. http://www.paulhastings.com/NewsDetail.aspx?NewsId=85 http://www.pbs.org/nbr/site/onair/transcripts/060227c/ Unfortunately, I cant seem to find anything we can get our hands on to invest in. I looked into a similar question earlier with another poster regarding another foreign market, and ran into the same dead end. The good news is that markets are becoming more and more integrated with technology as we speak, so it shouldnt take long <crosses fingers>..
Wow. It's scary that people make investment decisions based on so many incorrect assumptions. 1.) China's yuan is pegged to a basket of currencies, exchange rate movements against the US dollar will likely be immaterial. 2.) A stronger yuan would increase the price of Chinese products making them less competitive. Despite intense U.S. pressure, Beijing has allowed little adjustment in the grossly undervalued yuan - anywhere from 15 percent to 40 percent. What makes you think this will change? 3.) You've never been to China. How can you possibly consider investing your hard earned money in a communist country? I'm shocked. Yes, shocked that people would risk their capital with so little information.
And that's why I started a thread about it here to begin LEARNING about it from what I consider some pretty good advisors. That's why I subscribe to this particular investing forum. Thanks for the advice, but try not to be such a smug bastard next time....and I DO plan on going to China within the next 2-3 years.
So what? Do you have to "experience"/work for every company (or in this case country) you invest in? Information is out there. Plus, if you go with the professionally managed foreign investment, they are your education. see above.
I think these are Hong Kong REITS that own Chinese assets, which is a bit different, but may be wrong. I know Hong Kong got on board with REITS very early.
I just hope the Chinese stock market doesn't perform for the rest of they year like it did yesterday.
I haven't invested in it yet.. but I hear you as it affects us residually. I don't know if you guys have read this: http://www.ft.com/cms/s/1b26d35c-c81b-11db-b0dc-000b5df10621.html
the problem with China is that the whole thing could come tumbling down very quickly. Its GDP has been growing at a clip of 10% per year and that doesn't last forever. Its stock market is full of companies owned by the state and nobody has any idea of what accounting standards they have for public companies, let alone state-owned enterprises. I bought a China-oriented mutual fund 5 years ago and sold it 1 year ago......it was obvious to me that the relentless high-percetage growth would not last forever and I really worry about lending standards.......do the Chinese really know what they are doing while lending? The Chinese have never seen asset bubbles or the chain reaction that happens when collateral on a certain loan is only worth 30% of what the bank thought it was worth. I would not touch a Chinese REIT with a ten foot pole. God only knows what property rights exist with a government that is still basically Marxist......everybody has forgotten that. The banks there have over-lent just like the Japanese in the 80's and the Asian tigers in the 90's. If you wade in now, it's like jumping into the NASDAQ in 98'.......their might be some steam left but you are now buying expensive assets. Just my two cents.....and be careful. India is also do for a hit.......stay clear of that place too. Long-term these might be good plays but not buying in right now......you are just following the pros who are looking to cash out and you will be left holding the bag.
Buddy...cold world is over! You put your money where it will grow! China+India+ GCC= Growth countries
I'd quibble on a couple of facts - one, the Chinese government hasn't been inherently Marxist for quite some time. Two, you have to think the government will shore up bank defaults with some of its vast currency reserves. Three, there is so much equity in China right now and so much demand that I don't see a market implosion. There will be a slowdown as banks begin to rue the bad loans they've written, but that's already happening here, and we're not exactly rushing out to sell all US stocks. I have some foreign equity funds (not too much), and while they're admittedly risky, its not quite the doom and gloom scenario being pictured. China has a lot of appetite for financial products right now and I don't see that disappearing unless their government fundamentally changes the policy it has undertaken since Mao's death.
Politically, China IS still Marxist. The Chinese government still has absolute control over politics, and it continually seeks to eradicate internal threats to the stability of the country. How do they do this? By jailing of political opponents and journalists, regulation of the press, regulation of religion, and suppression of independence/secessionist movements. The country is also rife with corruption. You are confusing equity with liquidity. China currently has plenty of liquidity but history tells us that credit, and by extension liquidity, can dry up overnight. I could easily see it's stock market crumbling 50% in a matter of weeks in a crisis because of a credit crunch. About 6 weeks ago, the Shanghai exchange was down 9% in one day ON VERY LITTLE NEWS. The canary in the Chinese coal mine is it's attitude toward property rights. Property rights (and rule of law) were the keys to success in the west and countries in the Third World never figured it out.......or they did but didn't want to go through with it because that means relinquishing control. Maybe I am sounding too negative.........I have some money in a general Emerging Markets fund that includes China as well as a bunch of other countries but I am not loading the boat at this point.........just trying to stay diversified. But I wonder how long the West will allow China to pursue such blatant 17th/18th century mercantilist policies.