homesmillbrae.com » Asia Society http://homesmillbrae.com Thu, 20 Oct 2022 03:48:43 +0000 en hourly 1 http://wordpress.org/?v=3.1 Chinese investors buying up San Francisco real estate http://homesmillbrae.com/2276/chinese-investors-buying-up-san-francisco-real-estate-2/ http://homesmillbrae.com/2276/chinese-investors-buying-up-san-francisco-real-estate-2/#comments Sat, 22 Jun 2013 01:51:05 +0000 http://homesmillbrae.com/2276/chinese-investors-buying-up-san-francisco-real-estate-2/ Continue reading →]]> <!–enpproperty 2013-06-21 11:36:47.0Yu Wei in San FranciscoChinese investors buying up San Francisco real estateChinese investors buying up San Francisco real estate1811048365Across America2@usa/enpproperty–>

Last month, California’s median home price experienced its biggest gain in more than 33 years, according to the California Association of Realtors. But it didn’t put off wealthy Chinese who have been pouring money into Golden State real estate.

The San Francisco Bay Area is seeing a tremendous surge in real estate investment from China. According to the San Francisco-based Asia Society, California is on track this year to receive record investments in both commercial and residential real estate.

The society recently held a panel discussion on “Courting the Chinese Buyer: The New California Real Estate Boom”. The experts there agreed that Chinese investment in Bay area properties would continue to be strong.

Yat-Pang Au, founder and CEO of Veritas Investments Inc, one of the largest owners and operators of apartments in San Francisco, said that one of the reasons it made sense to invest in San Francisco was that it is a true cosmopolitan city recognized throughout the world, but still one of the cheapest. Au called it “a natural fit” for a Chinese investor.

“We have good schools, a safe environment, clean air,” Au said. “It is a relatively safe investment in real estate.”

According to the National Association of Realtors, buyers from China are now the second-largest group of foreign investors in US residential real estate (after Canadians), spending $9 billion in the year ending March 2012.

While Chinese individual investors are focusing on residential real estate, Chinese enterprises are making an even harder push into the commercial market.

Chinese developer Zarsion Holdings Group inked a deal to build a $1.5 billion waterfront development in Oakland, California, during Governor Brown’s trade mission to China in April. There is also a joint venture underway between China Vanke Co Ltd and US firm Tishman Speyer Properties to develop luxury apartments in San Francisco.

Wilson Chen, president of Portland-based American Pacific International Capital, thinks that China’s slowing economy will not slow down Chinese investment overseas; on the contrary, he believes there will be more people looking to diversify their portfolios with investments outside of China.

Chen said that inflation in China was huge and in the international currency market, the US dollar was weak against the Chinese yuan. “When Chinese investors come to the US to invest, they pretty much grab the money off the printing machine and come over here to buy cheaper stuff,” he said.

Chinese investment in the US hit an all-time record in 2012 of $6.5 billion and will likely surpass that level in 2013, according to the research firm Rhodium Group.

Leonard Rosenberg, head of the Palo Alto-based law firm Mayer Brown, said investment growth in China goes beyond market forces.

“I think there are policies in place to encourage Chinese investment, particularly the state enterprises,” Rosenberg said, noting that Chinese insurance laws were modified to allow state-owned insurance companies to invest in real property assets.

Rosenberg also mentioned a recent Bloomberg report about China’s official overseer of foreign-currency reserves talking about potentially investing in US real estate.

“It makes sense that they will want to move into real estate in general,” he said. “US real estate is very transparent and a low barrier entry sort of industry.”

The experts suggest being aware of the cultural gap between US and Chinese investors. Because the Chinese are usually thinking differently in terms of what their US partner can offer.

“There are some gaps that cannot be bridged,” Chen said, “primarily on the financial structure side, but also some on the legal structure side that they don’t understand.”

As an example he mentioned that China has no property tax, so when Chinese people come to the US to buy property, they say, Ok, that’s cheap, then buy it, without realizing what they’re getting into.

Yuwei12@chinadailyusa.com

(China Daily USA 06/21/2013 page10)

Article source: http://usa.chinadaily.com.cn/epaper/2013-06/21/content_16643650.htm

]]> http://homesmillbrae.com/2276/chinese-investors-buying-up-san-francisco-real-estate-2/feed/ 0 Chinese investors buying up San Francisco real estate http://homesmillbrae.com/2275/chinese-investors-buying-up-san-francisco-real-estate/ http://homesmillbrae.com/2275/chinese-investors-buying-up-san-francisco-real-estate/#comments Fri, 21 Jun 2013 07:50:36 +0000 http://homesmillbrae.com/2275/chinese-investors-buying-up-san-francisco-real-estate/ Continue reading →]]> <!–enpproperty 2013-06-21 11:36:47.0Yu Wei in San FranciscoChinese investors buying up San Francisco real estateChinese investors buying up San Francisco real estate1811040061Home2@usa/enpproperty–>

Last month, California’s median home price experienced its biggest gain in more than 33 years, according to the California Association of Realtors. But it didn’t put off wealthy Chinese who have been pouring money into Golden State real estate.

The San Francisco Bay Area is seeing a tremendous surge in real estate investment from China. According to the San Francisco-based Asia Society, California is on track this year to receive record investments in both commercial and residential real estate.

The society recently held a panel discussion on “Courting the Chinese Buyer: The New California Real Estate Boom”. The experts there agreed that Chinese investment in Bay area properties would continue to be strong.

Yat-Pang Au, founder and CEO of Veritas Investments Inc, one of the largest owners and operators of apartments in San Francisco, said that one of the reasons it made sense to invest in San Francisco was that it is a true cosmopolitan city recognized throughout the world, but still one of the cheapest. Au called it “a natural fit” for a Chinese investor.

“We have good schools, a safe environment, clean air,” Au said. “It is a relatively safe investment in real estate.”

According to the National Association of Realtors, buyers from China are now the second-largest group of foreign investors in US residential real estate (after Canadians), spending $9 billion in the year ending March 2012.

While Chinese individual investors are focusing on residential real estate, Chinese enterprises are making an even harder push into the commercial market.

Chinese developer Zarsion Holdings Group inked a deal to build a $1.5 billion waterfront development in Oakland, California, during Governor Brown’s trade mission to China in April. There is also a joint venture underway between China Vanke Co Ltd and US firm Tishman Speyer Properties to develop luxury apartments in San Francisco.

Wilson Chen, president of Portland-based American Pacific International Capital, thinks that China’s slowing economy will not slow down Chinese investment overseas; on the contrary, he believes there will be more people looking to diversify their portfolios with investments outside of China.

Chen said that inflation in China was huge and in the international currency market, the US dollar was weak against the Chinese yuan. “When Chinese investors come to the US to invest, they pretty much grab the money off the printing machine and come over here to buy cheaper stuff,” he said.

Chinese investment in the US hit an all-time record in 2012 of $6.5 billion and will likely surpass that level in 2013, according to the research firm Rhodium Group.

Leonard Rosenberg, head of the Palo Alto-based law firm Mayer Brown, said investment growth in China goes beyond market forces.

“I think there are policies in place to encourage Chinese investment, particularly the state enterprises,” Rosenberg said, noting that Chinese insurance laws were modified to allow state-owned insurance companies to invest in real property assets.

Rosenberg also mentioned a recent Bloomberg report about China’s official overseer of foreign-currency reserves talking about potentially investing in US real estate.

“It makes sense that they will want to move into real estate in general,” he said. “US real estate is very transparent and a low barrier entry sort of industry.”

The experts suggest being aware of the cultural gap between US and Chinese investors. Because the Chinese are usually thinking differently in terms of what their US partner can offer.

“There are some gaps that cannot be bridged,” Chen said, “primarily on the financial structure side, but also some on the legal structure side that they don’t understand.”

As an example he mentioned that China has no property tax, so when Chinese people come to the US to buy property, they say, Ok, that’s cheap, then buy it, without realizing what they’re getting into.

Yuwei12@chinadailyusa.com

(China Daily USA 06/21/2013 page10)

Article source: http://usa.chinadaily.com.cn/2013-06/21/content_16643650.htm

]]> http://homesmillbrae.com/2275/chinese-investors-buying-up-san-francisco-real-estate/feed/ 0 Calif. governor looks to China for investments http://homesmillbrae.com/2110/calif-governor-looks-to-china-for-investments/ http://homesmillbrae.com/2110/calif-governor-looks-to-china-for-investments/#comments Sat, 06 Apr 2013 20:29:01 +0000 http://homesmillbrae.com/2110/calif-governor-looks-to-china-for-investments/ Continue reading →]]> Click photo to enlarge01d02 20130406 USCaliforniaChina%7E1 VIEWER Calif. governor looks to China for investments01d02 20130406 USCaliforniaChina%7E1 VIEWER Calif. governor looks to China for investments8f2b0 20130406 USCaliforniaChina%7E2 VIEWER Calif. governor looks to China for investmentsSACRAMENTO, Calif.—California Gov. Jerry Brown has designs on building some of the most expensive public works projects in the nation and wants to keep the state moving forward in its slow recovery from the recession.

Where better to go searching for the money to further those interests than the world’s second largest economy and a country that has piles of cash to invest around the globe?

The governor of the most populous U.S. state heads to China next week to begin a weeklong trade mission that he hopes will produce investments on both sides of the Pacific. Brown will lead a delegation of business leaders in search of what he calls “plenty of billions.”

“They’ve got $400 billion or $500 billion they’re going to invest abroad, so California’s got to get a piece of that,” Brown said in an interview last week ahead of his seven-day trip to China.

The governor and business leaders accompanying him are trying to rebuild the state’s official relationship with China after the state closed its two trade offices and others around the world a decade ago in a cost-cutting move. California finds itself playing catch-up to other states that have had a vigorous presence in China for years.

California, which would be the world’s ninth largest economy if it were a separate country, will open a trade office in Shanghai during Brown’s visit. The Bay Area Council, a coalition of business interests from the San Francisco Bay Area and Silicon Valley, is

raising about $1 million a year in private money to operate it.

“California shouldn’t be the only state in the union not to have a presence with key foreign trading partners like China,” said Jim Wunderman, president of the group.

The council opened its own office in Shanghai in 2010 to fill the void after the closure of the trade offices. Bruce Pickering, executive director of the Northern California office of the Asia Society, called the 2003 decision “penny wise but pound foolish.”

“We’ve basically said, ‘We’re California, show up and stand in line with everybody else,’” Pickering said. “You have to do a little more than just say you’re welcoming a business. … You have to really send a message that you are ready for it.”

Asia Society, a nonpartisan, nonprofit organization that promotes collaboration between the U.S. and Asia, reported in 2011 that businesses from China have established operations and created jobs in at least 35 of the 50 U.S. states, including California.

Pickering said California is behind other states in recruiting Chinese investment, while states as varied as Pennsylvania, Missouri, Florida and Arkansas have had an official presence there. The Republican governors of Iowa, Virginia, Wisconsin and Guam also are visiting China this month and meeting with provincial leaders to discuss trade and the environment.

“I would think it would be very difficult to try to attract investment without having someone on the ground there on your behalf,” said Joe Holmes, a spokesman for the Arkansas Economic Development Agency.

Arkansas Gov. Mike Beebe led a mission to China last year, and a number of deals are being discussed as a result, Holmes said.

Asia Society reported this year that China’s direct foreign investment is poised to skyrocket to between $1 trillion and $2 trillion by 2020. California is ideally situated to capture some of that money if it goes after it: China already is California’s third-largest export partner after Mexico and Canada.

And Brown already has a relationship with President Xi Jinping. The two met to discuss trade issues last year when the then-vice president visited California.

Technology, life sciences, real estate, banking, health care and agriculture are among the industries state business leaders and officials hope to target. The concentration of skilled technical engineers and the clean-energy sector in the Silicon Valley also are a draw for emerging companies, along with Chinese tourism to California.

State and local tourism officials are among those joining Brown on the trip, along with winemakers, cheese proprietors and almond growers. In all, about 75 business and policy leaders from a cross-section of California industries are joining the mission, which will include stops in the capital city, Beijing, as well as Shanghai and Guangzhou.

Those cities are among the most developed and important in China. Shanghai, a port city, is an important center of industry and finance, while Guangzhou is in the heartland of the Pearl River Delta region, which is home to the myriad processing and assembling factories that have made China the world’s factory floor.

The nearly $4 billion a year in computer and electronic products California sends to China account for the state’s largest export, followed by waste and scrap, non-electrical machinery and transportation equipment. The agriculture products such as strawberries, almonds and lettuce are fifth.

According to the governor’s office, the vast majority of Chinese exports headed to the United States go through California ports.

The trip also signals a pivot for Brown as he seeks to rebuild California’s nearly $2 trillion economy after the state’s tumultuous ride during the Great Recession. It was the epicenter of the housing crisis and weathered double-digit unemployment for nearly four years.

Brown said the state budget has stabilized, in large part because of voter-approved tax increases, and that he is now moving on to broader policy issues.

“California is a place where it’s a cauldron of creative activity, and I see that China has some of that, maybe a lot of that,” Brown said in the interview. “You have always got to find a way to renew things, and that’s what I see as my job here.”

The governor’s boldest and most expensive projects are a $68 billion high-speed rail system that is expected to start construction this summer and a $24 billion project to build massive water-delivery tunnels and restore parts of the Sacramento-San Joaquin River Delta, the largest estuary on the West Coast.

Brown is especially interested in studying China’s extensive high-speed rail system and use it as a way to promote his own plan, which has come under intense criticism and has been losing public support as its projected cost has soared. The governor is scheduled to ride part of China’s rail system from Beijing to Shanghai, accompanied by the chairman of California’s high-speed rail board, Dan Richard.

China has the world’s longest high-speed rail system, covering 5,800 miles, and has tried to turn it into a showcase. But the system also has faced problems: Part of a line collapsed in central China after heavy rains and a crash in 2011 killed 40 people. The former railway minister, who spearheaded the bullet train’s construction, and the ministry’s chief engineer, were detained in a corruption investigation.

Brown said he likes “the exuberance” with which Chinese officials approached building high-speed rail and would welcome investment in the California system or any other infrastructure projects in the state.

Despite the governor’s enthusiasm, it’s not clear how applicable the Chinese system is to a major infrastructure project in the U.S. The Chinese high-speed rail network benefits from heavy government financing and faces few of the environmental and legal hurdles in California. The land needed to build the Chinese system is often forcibly procured at below market prices.

———

Associated Press writer Charles Hutzler in Beijing contributed to this report.

Article source: http://www.insidebayarea.com/news/ci_22970064/calif-governor-looks-china-investments

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