"In recent years, there have been many restrictions on foreign investment in China's real estate industry, and it is difficult to make progress. The financing of domestic housing enterprises is a new way for them to explore the China market. Guo Jiayao, vice president of Haitong Securities China Sales Department, told reporters that the operation of real estate investment funds is not directly related to the level of property prices under the condition that the loan interest rate is controlled. At present, commercial real estate with relatively stable rate of return is the main investment object of real estate investment funds.
SFM Hong Kong Management, the Hong Kong branch of Soros Fund Management Company (hereinafter referred to as SFM), began planning to set up a real estate fund at the beginning of this year. At present, the clients of the fund include many wealthy people from the Mainland and Hong Kong, who want to buy and sell real estate in China and Hong Kong, and may earn high interest or finance mainland enterprises.
Lending to earn high interest?
As one of the financing methods of high interest funds, real estate investment funds have become a big cake in the capital market, and foreign investment funds have also entered on a large scale.
"Affected by the government's protection policy and foreign exchange control on the real estate industry, the actual impact of foreign capital on the real estate market in China is very limited, and it is unlikely that foreign capital will enter the real estate market in China on a large scale." Haitong international real estate industry analyst Hou told this reporter that the capital chain of small and medium-sized housing enterprises is very tight at present, and it is easier for foreign real estate investment funds to negotiate good prices and projects in market fluctuations.
Hou said that because traditional foreign real estate investment funds mainly invest in physical objects, local project management and the absence of investors are still problems they need to face. Generally speaking, foreign private equity funds will not participate in management, and even if they are absolutely controlled, they will hand over the project management right to the first-line real estate enterprises.
An industry insider told reporters that the initial idea of developers was to raise money for themselves, not to maximize the interests of fund investors. Therefore, after receiving the project funds, developers may keep good projects for themselves and put bad projects in the fund, which will inevitably lead to insufficient investor confidence.
"Traditional foreign real estate investment funds mainly invest in physical objects, but their performance in China is not good. Soros Fund may operate by lending to earn high interest rates, which is an evasion of the problems arising from investing in physical objects. " Huang Liangsheng, co-director of Zhongyuan Real Estate Research Department, told this reporter.
Huang Liangsheng said that commercial real estate is the focus of investors' competition, and there is greater resistance for foreign investors to grab good projects. For example, the Singapore Fengshu Group has made little effort since it entered the China market in 2005. The biggest investment in the Mainland and Hong Kong this year was the acquisition of Festival Walk, a large shopping mall in Kowloon Tong owned by Swire, in July for HK$ 654.38+088 billion. In addition, this fund has no more projects to write the story of the dispatched person to investors.
Fund managers are familiar with the rich in the mainland.
Compared with other real estate investment funds, the management background of Soros Hong Kong Fund SFM Hong Kong Management Company has undoubtedly cleared many obstacles for it to enter the real estate market in China.
The management of SFM Hong Kong is headed by Cai Duyun, former managing director of Merrill Lynch's trading department, and the directors include Dai, a senior returnee who was transferred back to Hong Kong from the United States. It is said that they are very familiar with the mainland rich and the fund industry.
In July this year, Soros suddenly closed his $25.5 billion fund, that is, nearly 200 billion Hong Kong dollars, and returned nearly 1 billion US dollars to investors, claiming that his purpose was to focus on the family business, not only avoiding the supervision of the US authorities, but also successfully avoiding the global stock market crash that began in September.
Therefore, Soros has also won the trust of the mainland and Hong Kong tycoons, as well as the mainland insurance industry and investment funds, and intends to seek Soros's cooperation. Some potential investors said that due to the pessimistic environment next year, the assets on hand will definitely shrink seriously. If you invest some money in hedge funds, you have a chance to make money against the market.
"With Soros's previous investment resume, investors are full of confidence in him, and financing will never be a problem for this real estate investment fund." Guo Jiayao believes that SFM can become a simple creditor by earning high interest rates or investing in the profit model of internal housing financing. There is no direct relationship between the profit of the project and the loan interest, so it is a very good profit project in the case of financing difficulties for real estate enterprises in the mainland. It is expected that Soros will reduce the risk caused by high debt ratio of real estate enterprises by diversifying investment and regularly evaluating investment returns and project risks.
Haitong international strategist Huang Xunhui questioned the above projects. "I think credit problems and cross-border capital flows will be the main obstacles to this project." He pointed out that in the case that a large amount of funds can't freely enter and leave the mainland of China, Soros may solve the problem of cross-border capital flow by buying corporate bonds of real estate companies listed in Hong Kong.
Soros entered the market to speculate and lend money to real estate enterprises to earn high interest rates.
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