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More U.S. Investors Withdrawing from China’s Real Estate Market

The International Herald Leader published an article reporting that U.S. investors are withdrawing from China’s real estate market. The weather is getting colder, bringing winter to the Chinese real estate market. Housing prices in Shanghai, Beijing, and other cities have fallen up to 30%. At the end of September, the U.S. investment firm Blackstone sold its 95% ownership of the commercial real property, the Shanghai Shopping Channel 1, for 1.45 billion RMB to a Hong Kong investor, Cheng Yu-tung. Recently, over a dozen U.S. individual investors jointly sold over 70 suites in a Shanghai hotel for 126 million RMB. “The collective action of the U.S. individual investors to sell their property and the Blackstone’s divestment of its real property in Shanghai confirm the rumor that foreign capital is accelerating its withdrawal from China’s real estate market.” At an interview with the newspaper, Ye Chuhua, a financial expert stated that those who are withdrawing today have already missed the prime time and that those who still own real property are trapped and will have to sell at a loss.

Source: Xinhua, October 31, 2011