How to Breakthrough Asian and Chinese Investors


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Xian worked for the National Association of REALTORS (NAR) as the Director of Asia Business Development until 2010. During his ten years at NAR, he helped them and their affiliates as well as many other U.S. businesses in their Asia expansion.

He also worked at Real Estate Brokerage Managers Council as the Manager of Real Estate Information Center prior to working at NAR. His real estate career began in 1996 when he took real estate courses and became a licensed salesperson in Illinois. He currently holds a broker license from the state of Illinois.

He holds a Master Degree majoring in Law Library and Information Management from Dominican University in River Forest, Illinois. After graduating, he worked for several Chicago based law firms as the director of law library and information centers.

Originally from China, he will talk about the best marketing tactics and discuss current trends relating to Asian markets with a focus on China.

The International Consortium of Real Estate Associations (ICREA), one of the leading real estate organizations in the world, is committed to the right to own and transfer real property. ICREA sets standards for international real estate practice and facilitates worldwide real estate transactions.

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How to Breakthrough Asian and Chinese Investors

  1. 1. How to Breakthrough Asians/Chinese Investors Xiannian Ye Director of Asia Business Development International Consortium of Real Estate Associations October, 2011
  2. 2. What we are going to talk about? <ul><li>Asian Investors </li></ul><ul><li>China and its Economy </li></ul><ul><li>Some facts and figures </li></ul><ul><li>Potential Investors from China </li></ul><ul><li>How to Attract Investors from China </li></ul><ul><li>Work with Local Partners </li></ul>
  3. 3. Asian Investors <ul><li>1) American clients tend to be more outspoken and demanding than Asians </li></ul><ul><li>Mindsets of Asians depend on the region they are from and other factors </li></ul><ul><li>3) Business relationships are built on personal relationships in Asian culture </li></ul>How are Asian Clients Different from American Clients?
  4. 4. China and its Economy <ul><li>China became largest exporter and 2 nd largest economy in world in 2010 </li></ul><ul><li>Dollar values of China’s agriculture and industrial output </li></ul><ul><li>Urbanization and Aging Population </li></ul><ul><li>Economic reform and GDP growth around 10% in 2010 </li></ul>What makes China so unique and interesting and What is the significance of China’s economic growth?
  5. 5. Some facts and figures about China <ul><li>1.34 billion people, about one fifth of the world population </li></ul><ul><li>The largest city is Chongqing with a population of 30 million followed by Shanghai with a population of about 20 million. </li></ul><ul><li>180 million people who are over 60 years old </li></ul><ul><li>94% of the population in China live in the eastern 3 rd of the country </li></ul><ul><li>Over 800 million cell phone users in July 2010 </li></ul><ul><li>Over 80% home ownership for urban residents </li></ul><ul><li>56 million international visitors in 2010 </li></ul><ul><li>48 million outbound travelers, an increase of 54% from 2005 to 2009 </li></ul>
  6. 6. Some facts and figures about China <ul><li>$5.87 trillion GDP in 2010, 2 nd largest the world after U.S. </li></ul><ul><li>$3.2 trillion in foreign reserves at the end of July, 2011 </li></ul><ul><li>$105.7 billion FDI in 2010, a 17.4 % increase over 2009 </li></ul><ul><li>largest exporter and 2 nd largest economy in world in 2010 </li></ul><ul><li>During the past 10 years, China's overseas direct investment grew 40 percent annually, reaching $68.8 billion in 2010 </li></ul><ul><li>China became the largest consumer of energy on the planet in June 2011 and consumes 20.3% of the world total </li></ul><ul><li>Service sector is comprised of about 44% GDP, while it’s about 77% in the U.S. </li></ul><ul><li>There are 271 billionaires in China in 2011, over 40 % increase over 2010 </li></ul>
  7. 7. <ul><li>Chinese are attracted to inexpensive, yet valuable property </li></ul><ul><li>Real estate crisis in U.S. has created opportunities for Chinese companies </li></ul><ul><li>Chinese companies invested billions of dollars in mergers and acquisitions </li></ul><ul><li>Investors from China are putting their money in U.S. real estate </li></ul>Potential Investors from China How serious are Chinese about investing in U.S. real estate?
  8. 8. <ul><li>Foreign direct investment (FDI) growth since 1980’s </li></ul><ul><li>China is shopping for investment opportunities abroad </li></ul><ul><li>World Trade Organization (WTO) and foreign investment </li></ul><ul><li>Steps to attract investors from China </li></ul><ul><li>Finding Chinese investors </li></ul><ul><li>Residential real estate </li></ul>How to Attract Investors from China Overview of China’s Foreign Investment Climate
  9. 9. How to Attract Investors from Chi na <ul><li>7) Finding residential real estate buyers </li></ul><ul><li>8) Commercial real estate </li></ul><ul><li>9) Winning Chinese Investments in U.S. Funds </li></ul><ul><li>10) Chinese refinancing of Commercial Properties </li></ul><ul><li>11) Summary </li></ul>Overview of China’s Foreign Investment Climate (cont)
  10. 10. Work with Local Partners <ul><li>1) Basic principles to keep in mind </li></ul><ul><li>2) Choose partners who have recently done business in the Chinese market </li></ul><ul><li>3) Learn to nurture strong and close relationships </li></ul>Successfully mastering business etiquette with Asian partners
  11. 11. Conclusion <ul><li>1) U.S. is one of the largest foreign investors in China </li></ul><ul><li>2) China is becoming the global hub for economic activity </li></ul><ul><li>3) The importance of relationships in Chinese culture </li></ul>Synopsis of attracting and retaining Asian investors
  12. 12. Summary of Presentation <ul><li>Asian clients are quite different than Americans though they have something in common. </li></ul><ul><li>China has more than $3.2 trillion in foreign reserves and is shopping for investment opportunities abroad. </li></ul><ul><li>Finding and working with knowledgeable and experienced partners is the key for success. </li></ul><ul><li>Guanxi (relationship) is an important element in achieving successful business in China. </li></ul><ul><li>Top management must learn to nurture strong and close relationships with their local counterparts. </li></ul>
  13. 13. Summary of Presentation (cont.) <ul><li>Longstanding relationships count in China and a natural choice for a U.S. partner may depend on a successfully established rapport. </li></ul><ul><li>There are about one million people in China whose personal wealth is $1 million or more and 40% of richest people are in real estate or related business as reported. </li></ul><ul><li>Growth in the number of well-off Chinese people, an increase in overseas education by their children, an appreciation of Chinese currency, and a drop in U.S. property prices are leading to more purchases of U.S. real estate by buyers from China. </li></ul><ul><li>The U.S. represents a good value for what Chinese consider to be a rapidly globalizing Chinese investor. </li></ul>
  14. 14. <ul><li>Thank You! </li></ul>