Chinese real estate investors have set their sights on Dubai as a destination for investment and opportunities in China will lose its luster after the recent turbulence in the stock markets.
In Dubai, rental yields of residential properties are 8 percent on average annually, driven by demand from expatriates strong, stable, according to the agent Lisa Luo property, which has been based in the city in the UAE States for eight years.
This compares with yields of only 2-3 percent in China, Luo, property consultant Knight Corte Real Estate said.
"Expatriates account for about 80 percent of the population of Dubai," he said. "There are also a growing number of Chinese companies setting up offices in Dubai, which is driving the demand for rental."
Luo said that an investor could buy a one bedroom apartment in Dubai for 1.5 billion yuan (HK $ 1.82 million) and receiving up to 150,000 yuan rental income a year, for example. Seeing an opportunity, he said, Chinese investors are increasingly willing to enter the real estate market of Dubai.
China's property market, by contrast, had lost its appeal due to their low rental yields, Luo said. It was also difficult to find investments with good returns amid turmoil in the stock markets of the country and under its environment of low interest rates, he added.
Luo said the tourism business in Dubai and next World Expo 2020 will further buoy the property prices in the city.
The Chinese buy real estate abroad, revealed that the number of Chinese citizens interested in purchasing property in Dubai has increased 1,200 percent last month in the same period last year.
Dubai Properties real estate developer Damac - showing a luxury project with villas and golf courses in an exhibition Guangzhou property - said investing in this project could provide an annual return of 8 percent in the first three years.
The return rate was achievable as leasing market of Dubai was stable and driven by demand from expatriates working in the business center of the Middle East, said sales manager Wang Huimin Damac.
"Chinese investors are trying to diversify their portfolios abroad ... Dubai, where the housing market is well regulated, has been a top pick for those looking to invest in the Middle East," he said.
Wang said that property prices in Dubai had seen little change since June last year due to an increased supply of new homes and a drop in oil prices, but the emerging market had good potential for appreciation over the long term.
Farid Jamal, sales and leasing of houses Cayan senior manager, said the lifestyle of the city and the safety and perpetuity of the property has also contributed to the rising interest of Chinese investors. Cayan arm Casas realtor developer Cayan Arabia Group, which developed the iconic twisted Cayan Tower in Dubai Marina del.
"The Chinese investors are interested in Dubai property. We received good questions to our [luxury residential] project," Jamal, who presented the project in Guangzhou show property last week he said.
Annual rental yields in Dubai could reach 8-9 percent in terms of projects and areas, Jamal, adding that properties priced between US $ 200,000 and US $ 400,000 would be more affordable for Chinese investors and said also it offers good performance.
"Dubai provides a better return on property investments that other countries do," he said.
An Increasing number of investors lower down the ladder wealth overseas are buying private islands in pursuit of a holiday retreat and a reliable investment.
"I see good potential for islands [as an investment] as prices Have yet to see a sharp rise," Said Zou Gang, the head of an immigration consulting company in Shenzhen.
"It's quite a bargain as you can spend just a few million yuan to buy an island, while an apartment in Shenzhen whos costs the same."
Zou was Among the visitors at the Luxury Properties Showcase in Guangzhou last week, Where I was on the lookout for islands in the South Pacific and his friends Where I Could holiday.
Haiyang Wang, general manager at Vladi Private Islands, an international broker an island Said Increasing number of Chinese entrepreneurs HAD Expressed an interest in investing in islands in recent years.
"They have noticed That this type of land resource is rare, and every island is unique With its own ecosystem and environment," Wang Said.
"Wealthy Chinese hope to own a piece of private territory in the world and They can even name Their own island - They can not do something on the mainland."
The pristine environment and fresh air Were Also attracting buyers, WHO Were seeking an escape from the near-permanent smog blankets That MOST mainland cities, Wang Said.
Investors preferred islands That Were not too remote and priced from tens of millions of yuan to 100 million yuan (HK $ 121.6 million), Said Wang, but added selection was limited.
As the supply is rare, the investment offers good appreciation valueWANG HAIYANG, VLADI PRIVATE ISLANDS
"There are just a few dozen of Those available on the market. As the supply is rare, the investment offers good value appreciation."
Fiji in the South Pacific and Canada Were Among popular choices, Wang Said.
Grammy Leung, an information technology expert in Guangzhou bought a small island in Canada last year for not more than one million yuan. I Said The outlay was manageable for him.
"I think it's a good place for my family to spend holidays. My two children can enjoy the seaside environment and culture on the island," He Said. Finding a flat at that price in mainland China would be difficult.
The island was small and I would need to build a house and basic facilities: such as a power generator, but I was optimistic Leung Said About ITS future worth.
Another investor attending the expo was Mike Garnham, a businessman from New Zealand Whose company owns one-third of Nananu-i-Ra, an island in Fiji. I was seeking to sell land parcels to Chinese investors.
"There are a lot more wealthy Chinese traveling to see what else the world has Offered," Garnham Said, adding some Were in the market for beachfront properties as a second home.
Chinese President Xi Jinping addresses a gathering of some of the biggest names in Chinese and US businesses Wednesday, they may be more interested what it says on progress towards a treaty among nations to provide a framework for the broader investment in the economy of each.
Apple CEO Tim Cook, Satya Nadella of Microsoft, Amazon, Jeff Bezos, the investor Warren Buffett and Jack Ma of Chinese e-commerce giant Alibaba are among the top 30 executives attending a closed-door discussion remain moderate by former US Treasury Secretary, Henry Paulson, who has called for a treaty of this kind. American CEOs all participants signed a letter to Xi and US President Barack Obama, urging them to support an agreement.
Bilateral Investment Treaties provide the rules of the road for companies doing business in other countries, and can help ensure that the rights of foreign investors are protected and that foreign companies operate on an equal footing with nationals. An agreement with China would open the huge US market to American companies, establish clearer rules for Chinese investment in the US, and create jobs on both sides, supporters say.
Such treaties "can be a powerful catalyst for further economic growth," Evan Feigenbaum, vice president of the Institute of Paulson, which is co-hosting the meeting on Wednesday, said on Tuesday.
Xi arrived in Seattle on Tuesday for a three-day visit before he travels to the White House later this week. He expected to make brief remarks to attendees before the session is closed to the press.
Notable absentees in business discussion Wednesday were representatives of Twitter, Facebook and Google. These websites are blocked in China companies.
In a speech Tuesday night Xi spoke on a variety of topics, including the need for a bilateral investment agreement.
Earlier this summer, US Treasury Jacob Lew said the two sides had a long way to go in negotiating a bilateral investment treaty, but had agreed to reduce their respective lists of industries that would be exempt from foreign investment this month.
In his policy speech Tuesday night - attended by dignitaries including former US Secretary of State Henry Kissinger, former US Treasury Secretary Hank Paulson and Penny Pritzker, Commerce Secretary Obama - Xi said China and the United States could work together to tackle cyber crime, a problem that has caused tension with each other.
Xi also said China will continue its policy of aggressive development to help more Chinese people "live a better life."
Reaching agreements to ensure continued robust international trade was a priority, he said. "China will never close its door open to the outside world," Xi said, according to a translation of his words.
He said China was a strong supporter of cybersecurity, but was also a victim of piracy.
Recognizing that China and the United States do not always see eye to eye, Xi said China is willing to establish a joint effort with the United States to fight against cybercrime.
The issue is sensitive cyber attacks between the two nations. US officials say hacking attacks from China are approaching epidemic levels.
As Xi spoke Tuesday night, protesters gathered near the downtown hotel he was staying in opposing things like the country's policies in Tibet.
Earlier, the meetings with the governors of the five states of the US and Chinese local officials produced the agreement to work on clean energy.
"We can be the core of our national leaders to learn from," Michigan Gov. Rick Snyder, who has made five trips to China in five years, told his counterparts.
With an estimated 170 million people growing at over two percent annually, Nigeria is the seventh largest country in the world. According to the United Nations (UN) statistics, Nigeria's population will reach 230 million in the next 20 years. Representing more than 65 percent effective market West Africa, the country remains the most competitive for the establishment of medium and large manufacturing destination.
As the morning up early, China has already positioned to take advantage of this growing market by unleashing your horde of investors and businessmen in the manufacturing sector. Textile for clothing; appliances, automobiles; consumables and iron and steel, as well as ICT products, China has taken over, producing tons of products for different market segments.
More Chinese companies are expanding their investments in the manufacturing sector ostensibly hoping to technology transfer and staff training to increase local employment opportunities. For example, metal products proprietary Chinese Western Company Limited (WEMPCO) a multi-million naira integrated steel factory, located in Magboro in Lagos-Ibadan Expressway, Ogun State, is the first of its kind in Africa . The steel plant manufacturing expansion boasts a production capacity of 700,000 metric tons and production machinery five support Tandem Mill.
The factory, according to the Group Managing Director, Mr. Lewis Tung, plate produce cold rolled steel up to 0.15 mm thick coils of the same size and above. Other facilities at the plant are: 52 MW generator for food; water treatment and recycling plant; acid a generating plant; an air purifier and annealing line.
The economic benefits of investment are enormous. In addition to boosting the economic activities of the communities immediate, local, state and federal government acceptance, increased post stimulate economic activities and create jobs for artisans, such as technicians, drivers, technicians and automobile manufacturers. Mr Tung added that also improve training and technology transfer. More importantly, the investment will fill the void left by the dying Ajaokuta Steel Company in Kogi State.
Another area witnessed massive investment in China's agriculture. A Chinese leader, New Hope Liuhe Company Ltd., said the investment interest in agribusiness. In a meeting with the Executive Secretary of the Commission of Nigeria Investment Promotion (NIPC), Mrs. Uju Hassan-Baba, at the headquarters of the committee in Abuja, he said it plans to invest in other sectors such as manufacturing, processing and feed sale of raw materials additives, dairy and agricultural bye products, among others.
Chinese companies are also investing in seed cultivation and have become suppliers of seeds of the Federal Government, a development that has high local grain production.
The Chinese have been visible in the transport sector, especially in rail transport. The contract trains Lagos-Ibadan $ 1,490,000,000 has been awarded to China Civil Engineering Construction Corporation (CCECC) and the Olokola Deep Water Port project awarded to the China Ocean Shipping Group. The CCECC is also managing the project 27.5 kilometers Marina-Ido-Okokomaiko Lagos Light Rail. The governor of Lagos State has said that Akinwunmi Ambode naira billion project will be completed in 12 months.
According to a report by Ernst & Young on Nigeria issued for the World Economic Forum on Africa 2014, CCECC is the prime contractor for engineering, procurement and construction for the mass transit rail project Lagos. The first phase of the project -'Blue Line '- is scheduled for completion later this year.
The state-owned Export-Import Bank of China (EXIM Bank) is also providing a fully developed $ 500 million concessional loan for the modernization of 186 kilometers of railway line Abuja-Kaduna, which includes the construction of 36 bridges and nine stations . The Federal Government source the balance of $ 374 million. Continue along that line single standard width was formally launched in July 2013.
Before his inauguration on May 29, Buhari received a delegation of the CCECC, who paid a visit to present a prototype of its proposed high-speed train. Observers described the visit as an indication that the Buhari administration may be seeking to develop a high-speed rail network across Nigeria.
Before his departure from office, former President Goodluck Jonathan raised the rail network in a coma with N24 billion ($ 151.7 million) lifeline involving upgrading of tracks and signaling equipment. With the purchase of 25 GE locomotives, 500 wagons and renovation of passenger cars, services have resumed at 1126 kilometers from Lagos-Kano train route. The route had been closed for a decade.
The rebirth occurred immediately after the inauguration of some, automotive diesel air conditioning coaches 68 seats six long distance air conditioning in June last year. The new rolling stock was acquired by the Nigerian Railway Corporation (NRC).
It was part of the Federal Government Strategic Plan '25 -year train ', designed to encourage private investment in the renewal of existing lines narrow gauge railroad in the country and the construction of new standard gauge lines.
This was supplemented by China in 2012 with the formal opening of a training center for CCECC Railway Technology in Abuja to help in the development of Nigerians needed to support plans for rail and mass transit systems skills. The China Railway Construction Corporation Limited described its $ 8.3 billion project to modernize the rail network in the country as its "largest overseas project."
In addition to plants and power train, the Asian nation is also essential to support Nigeria with financial arrangements and investments in strategic infrastructure projects, including roads, airport terminals and free trade zones, among others. For example, China and Chinese companies are primarily interested in the Lekki Free Trade (LFTZ), Lagos. Upon completion, the project will attract international investors in manufacturing, trade and tourism, among other sectors.
It is expected that the project to provide 300, 000 direct and 600 000 indirect jobs in the coming years. Informed that the description of the LFTZ as one of the biggest Chinese projects in the country by former Industry, Trade and Investment Minister Olusegun Aganga.
Chinese companies have reaped a substantial part of the burgeoning telecommunications / ICT market in Nigeria. Chinese companies, in collaboration with telecom operators, are essential to the unprecedented growth of the telecommunications industry in Nigeria. Through the active participation of Chinese companies and investors, mobile phone subscription in Nigeria has increased from below 400, 000 in 2001 to over 140 million. Teledensity has also grown more than 100 percent.
The popular Global System for Mobile Telecommunications (GSM) villages in Lagos and Abuja, and various other commercial cities across the country bear tracks dominance of China sector. Most mobile phone shops in the two city centers are full of Chinese products, ranging from mobile phones to laptops, Bluetooth headsets and devices for hands-free devices, among others.
To Seye Olatunji, a GSM operator in GSM / Computer Village, Ikeja, the business of selling products in China it has been exciting and rewarding.
His words: ". Usually, it is more expensive to buy products from other Western countries, but that is not the same for China Most of us here can now go to China ourselves and buy products at very flexible terms and conditions" .
Even buyers share the same sentiment. "If China's smartphones are compared with those of other countries, there is little or no difference at all. And the Chinese are even cheaper. So, why should I spend more money on something equivalent to it?" Hassan Audu , a client computer in the Village he asked.
Dozens of Chinese companies dominate the retail market segment in various parts of the country. Viju milk brands such as Huawei, ZTE, Alcatel and others are household names Chinese restaurants, such as the Golden Gate, Lagos; Oasis Bakery everything in Lagos and several other business outlets dotting the landscape and are enjoying huge sponsorship.
Since 2005, when it was established, China Town in Lagos, has been serving as a one-stop shop for goods and services, ranging from textiles, shoes, jewelry, electronics, kitchenware and other items. Visit the city of China, with its competitive prices and accessibility has become a necessity for most buyers of Nigeria.
Nigeria has become the beautiful bride for Chinese investors is an open secret. Abundant but largely untapped natural resources; large domestic market of more than 170 million; a growing middle class with purchasing power and an increasingly stable political, among others, have become irresistible to China and Asian investors.
Vast energy reserves of Nigeria, especially in oil and gas, may be all that is needed to feed the growing industry of China. Most populous and biggest economy in Africa with the size of GDP of about $ 500 billion is also the largest market for industrial products of China in Africa. Nigeria imports from China alone account for over one third of its total trade with West Africa.
The volume of imports is expected to increase in coming years as Nigeria favors various agencies and international ratings analysts to overtake South Africa in 2025 if the current growth rate of GDP is maintained. Nigeria relatively stable democracy also is believed to be one of the main factors for investors around the world especially in China see the country as an investment destination.
In addition, ease of start-ups in Nigeria has improved through ongoing reforms in the area of trade and investment. The returns on investment in Nigeria are relatively high, especially considering the exchange rate of the dollar to naira with major Western currencies and the Chinese yuan.
The pattern and dynamics of the Nigerian economy may have also opened the gate for Chinese enterprises to invest heavily. For example, experts say Nigeria's transition from a manufacturing and producing agricultural nation to an economy dependent on imports may have expanded the retail sector, which now accepts virtually anything from anywhere in the world. This is the leeway through which investors and Chinese products have taken root in Nigeria. The emergence of a vibrant retail sector in Nigeria is also said that as a result of various porous borders of the nation.
Akabogu As noted, Nigeria has benefited over Nigeria. According to him, the trade balance between both countries has tripled since the return of democracy in 1999.
"It has been a mutually beneficial business relationship. China takes oil from Nigeria as the barter trade for construction activities, the Chinese government subsidizes. What Nigerian exports to China are oil and some agric products," he said . Akabogu added that Nigeria has been sending engineers to substitute Chinese engineering system at a subsidized rate.
But as rewarding as the relationship may be to Nigeria, there is concern about alleged unfair practices by Chinese companies, anti-union practices and the perceived dominance of the market for fake and shoddy products from China. The idea is that the West may be delayed in the Nigerian market because of the quality of their products compared to the cheapest and lowest standard Chinese products. This is true especially in Nigeria, where consumers cheaper products more sponsor while remaining indifferent about the quality.
But as regards the Director General of Enugu Chamber of Commerce, Industry, Mines and Agriculture (ECCIMA) Sir Emeka Okereke, China is not to blame for the prevalence of substandard products in the market. He blamed the situation of weak institutions in Nigeria. "It is because of our inherent weak institutions that are unable to check the influx of substandard products," he told La Nacion, asking, "Where is our customs?"
She said Customs and other regulatory agency must wake up to its responsibilities. "Our borders and ports should it be effectively monitored especially given that we are an economy dependent on imports," he said.
Akabogu agrees with him. He said that blaming China for standard and fake products in Nigeria amounts to throwing punches in the wrong direction.
His words: "It (inferior products) is a default by the regulatory bodies is why we have been Canvassing strengthening institutions rather than individuals.".
The lawyer said there was the need to revitalize the institutions such as the Police, the Economic and Financial Crimes Commission (EFCC), Independent Corrupt Practices and other Related Offences Commission (ICPC) and the Code of Conduct Bureau (CCB), among others. "It comes down to the question of leadership, it is a lack of credibility, a problem of powers by the institutions of Nigeria", he insisted.
He also said that every capitalist is in business to make profits and China is no exception. According to him, it is left for the host country to put in place measures to check possible excesses of foreign countries and companies operating in their territory. Also, quoting the Halliburton scandal, which involved a US company, he said sharp business practices are not limited to China alone.
According to The Street, Chinese investors are seeking refuge in the United States real estate especially insurance companies that stand to premiums up to $ 3.32 trillion in 2020. Apparently, these companies are they looking for solid returns after China's stock markets suffered a recent setback and its currency being hit. In August, China devalued its own money to try to soften the blow of falling 8 percent on the Shanghai Stock Exchange.
Wealthy Chinese with various entities of money from his country are the target of stable and reliable investments especially in commercial and residential income generating projects compared to luxury properties that are considered for personal use. This is according to Edward Mermelstein who is a veteran of 20 years of age, consulting for clients in the real estate business. This game plan is similar to the game "Monopoly", where players pay to acquire money-making real estate such as hotels and houses. "There is an argument that is a flight to safety," said Mermelstein. "This is largely a flight to safety," he said.
This movement is consistent with the pouring investment in Europe and the USA by Chinese investors with a significant purchase in the last couple of years it is becoming a beacon of hope for many of them - the acquisition of the Waldorf Astoria in New York by an insurance company Anbang of $ 1.95 billion.
Meanwhile, in The Guardian, President Barack Obama is reportedly not staying at the Waldorf Astoria the UN General Assembly in October. The White House, however, refused to confirm if the reason for skipping the traditional hotel of many presidents of the United States is the fear of espionage by Chinese-owned hotel now.
The real estate market in the United States is at the center of a new brewing crisis, but unlike his usual playing bully in the world economy, this time is seen as a source of hope for Chinese investors looking for a stable place to dump your wealth.
The Government has approved the offer Chinese firm Shanghai Maling Aquarius' to buy a 50 percent Dunedin cooperative Silver Fern Farms.
"Potentially very good," said Prime Minister John Key.
"It's a very significant injection of capital, this is a company that has long had a large amount of debt and has been under pressure."
The Chinese company, partly owned by Bright Foods, submitted a bid on Tuesday to inject $ 261 million into capital than half of the largest exporter of meat in the country.
The total deal will be worth approximately $ 331 million.
Mr. Key says it's a vote of confidence in the industry in New Zealand Silver Fern Farms and give an opportunity to improve their access to the huge Chinese market.
It was announced as a game changer Silver Fern Farms by President Rob Hewett with the board unanimously recommend shareholders take the deal.
"I do not think there is any doubt of our strategy is the right strategy," he said.
"We will be released and the capital they are providing to be able to do that."
As part of the agreement, the Chinese firm Silver Fern Farms help eliminate all your debt while providing more investments to strengthen its balance sheet.
"At year end we will have no debt, no money in the bank," he said.
"It will turbocharge our China strategy, no doubt about that.
"We've had comments made about us in the market, this should shut them up."
As a sweetener, a special dividend of 30 cents per share be paid to shareholders.
The company also outlined plans to return half of its annual net profit to shareholders through dividends and bonuses.
Shanghai Maling Aquarius manufactures and sells canned foods, bottled water, flavor, frozen food, and other related to more than 800 supermarkets across China products.
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