Foreign capital borrow control effect to copy bottom domestic real estate

A recent news that the US private equity investment giant Blackstone Group (Blackstone) and the Hong Kong large real estate business Eagle June Group reached an agreement, Blackstone agreed to the Hong Kong Eagle to provide financial support to develop Eagle June in 2009 in Dalian, the land to build luxury hotels and high-end apartments. The move was also indirectly validated by Eagle June's interim results report, which said the group holds 50% interest in the Dalian Project and serves as the project manager, while the remaining 50% interests are held by an independent third party. The identity of the independent third party was not disclosed.　　The total floor area of Dalian Project is about 286,000 square meters, and excavation works are expected to commence in the three quarter of this year. As a result, the world's largest private equity investment company "transiting" into the Chinese residential market.　　As early as October 2008, Blackstone Group invested in the first China real estate project, the total cost of 950 million yuan to obtain the Shanghai Longevity Commercial Plaza 95% stake. In the current domestic real estate is experiencing the history of the most stringent macro-control policies in the background, the domestic property market price lag, real estate investment also showed a slowing momentum. But the Blackstone investment is not a case, foreign investment in the domestic real estate market enthusiasm in recent months has not seen a reduction, there is an increase in the trend.　　Incomplete statistics, including Morgan Stanley, Goldman Sachs, Macquarie, UBS, Merrill Lynch, Warburg investment, SoftBank Asia and many other international investment companies have entered the domestic real estate industry in different forms. Industry analysts believe that foreign investment in the current Chinese real estate market frequent activities based on a variety of reasons. As a result of monetary tightening and real estate control policies, many domestic real estate enterprises financing difficulties, the lack of funds of real estate developers to the "olive branch" to hold a large amount of foreign capital;　　While the real estate industry is a typical profiteering industry, the nature of the interest of foreign capital makes domestic real estate industry for foreign capital full of temptation, the current real estate regulation also provides the so-called "copy bottom" opportunity, to the lower cost of access to investment opportunities. At the same time, the appreciation of the renminbi is expected to have a positive impact on foreign capital inflows into the property market. According to China Securities Journal