I don't have confidence in the Chinese Government

Chinese Politics: stable. Many people believe China is politically unstable and find it difficult to trust the Chinese government. Since 1978 the CCP has engaged in a wide ranging programme of economic and social reform aimed at modernising the economy and developing China's external relations especially with the West. As a result China is now the fourth largest economy in the world and on course to be the largest. With over 60% of GDP from export and import, this growth will only be sustainable through maintaining strong relations with international partner. Is the Chinese government likely to jeopardise this?

I am concerned that all property in China is bought under leasehold…

Ownership Title: leasehold to increase. Currently all ownership is on a leasehold status. China operates under a 'land use right' system, in which the developer hands over the right to use the land to you on purchase. Leases range from 50 to 70 years depending on the district and land type, however the CCP are analysing European models to implement longer leasehold and potentially freehold ownership in the future. Current Chinese laws do conflict therefore congress is now assessing this to implement new ownership structures in the future. Will it not be to the advantage of the CCP to implement longer term leasehold with the relevant charges?

China is too far away and hard to get to…

Distance: a click of a mouse. Many investors question "is it too far away?" Your property will be managed, serviced and run by an onsite management company whilst your income funds can be managed and monitored online through a HSBC Premier bank account. Your investment will be essentially hands-free. Should you wish to visit, flights are readily available and not as expensive as many believe (£350 to Shanghai with China Eastern for example). If your property is an investment and not for your own lifestyle, it will generate you profit whilst being someone else's lifestyle, wherever in the world. Is your property for your use or theirs?

I am concerned about ownership...

Expropriation: safer than you realise. The laws of private property protection are quite clearly outlined in the CCP constitution. Removal of property against an individual's wishes is highly unlikely and does require full compensation from the CCP. According to some opinions, you are more likely to have your property taken from you in the US, according to the "eminent domain" law. Most crucially, the WTO requires the protection of private property rights. Is China likely to risk its accession to the World Trade Organisation?

I need mortgage financing..

Mortgage Finance: gearing to increase. For commercial property, more potentially profitable than residential, 50% loan-to-value mortgage finance is available for certain projects. Currently just 5% of Shanghai property value is financed by banking institutions. Following joining the WTO in 2001, the CCP is required to restructure and modernise the Chinese banking system, with the first stage of reforms required by the end of 2006. As the finance market modernises, an ensuing increase in finance availability is widely expected which will effectively increase investors' purchasing power and strengthen the market. Would it not be a good idea to invest before this occurs?

High Grade Commercial property SUCH AS SERVICED APARTMENTS is at a very high occupancy levels in certain areas...

Market movement: long-term growth. High grade commercial property is at very high occupancy levels in certain areas of Shanghai, with values and rents continuing to increase at strong rates. An abundance of residential developments has produced a short term excess of supply and an ensuing small plateau in the sales market, however with very high levels of FDI and MNC entering Shanghai the demand-supply balance is set to topple back in the favour of the investors. Commercial appreciation remains high.

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