|Videos||• Latest||• Feature||• Sports||• Your Videos|
Investors from Wenzhou, in eastern China, are known for their huge injections of capital. In recent years, many of them have come to Beijing, to speculate in the property market. But after the Beijing municipal government stepped up further tightening measures in the housing market, many of those investors are moving elsewhere.
Wenzhou Baiying Company is an expert on investing in real estate markets around China, on behalf of Wenzhou investors. The company says more than 30 thousand of its members each have more than 5 million yuan in capital.
According to company employees, the further tightening measures are having a major impact on investors.
Zhang Heping, General Manager of Wenzhou Baiying Company said "Every housing market curbing policy influences investors. They are not as enthusiastic as before. The tightening measures affect the first tier cities at the beginning, then it's the second tier cities' turn. After the further tightening measures, the company's business fell by more than 90 percent. There's have been no deals done after the policy was unrolled."
Businesses say Wenzhou investors with huge sums of capital won't sell their properties at lower prices, but will sit and wait for the market to pick up. But those in a less strong financial situation may sell their properties at lower prices, and put those funds back into commercial real estate.
Zhang Heping said "If an investor thinks there's no profit in the real estate market, he believes there's no need to invest in second tier cities. I hold the same view."
A Wenzhou investor says his money has been withdrawn from Beijing's real estate market, due to limited capital and the effect of the tightening measures. He also says many of his peers have also decided to leave the market, to invest in stocks or other profitable avenues.