China's Buying Spree in UK Property Market Rational?

　　Recently announced major Chinese investments in London are prompting more and more Chinese interest in potential investments in the UK capital. CRI's London correspondent Tu Yun has more.

 

　　Haidi Dai is a property market analyst¹ from Shanghai.

 

　　She's in London for a short business trip.

 

　　"The places I'd like to visit are mainly business and commercial areas like the City and Canary Wharf²."

 

　　Dai's company has previously³ helped with the planning of a finance and trade zone in Shanghai's Lujiaozui area, looking at Canary Wharf as a case of study.

 

　　"Shanghai is a global cosmopolitan⁴ city, so we chose the finance districts of those cities like New York, Paris, London, and Tokyo as examples for research."

 

　　While some Chinese companies are studying from afar, some are coming straightforward⁵ to tap into the local market.

 

　　Ping An Insurance Group has agreed to buy the landmark⁶ Lloyd's building in the City of London for around 390-million US dollars.

 

　　Last month, Chinese property developer Dalian Wanda Group announced plans to invest some 1.5-billion dollars to buy a British yacht maker⁷ and develop a five-star hotel in London.

 

　　And in May, Beijing-based developer Advanced Business Park signed a deal worth 1.5-billion dollars to transform the Royal Albert Dock in east London into a business port.

 

　　"London has demonstrated a very credible⁸ growth even when the market was very tough over the last couple of years."

 

　　Ajay Bhalla is Professor of Global Innovation Management at Cass Business School with City University in London.

 

　　"It has outperformed most of the world property markets especially in the developing world. I think that confidence which London has built has become a very attractive proposition for Chinese and other investors⁹. And the market's future outlook is to remain very buoyant."

 

　　A latest United Nations report shows foreign direct investment into Britain rose 22 percent to over 60-billion dollars last year.

 

　　That runs counter to the 18 percent decline in global FDI.

 

　　Haidi Dai says a comparatively high rate of return is the main factor driving Chinese investors to look abroad.

 

　　"Return on investment in China's property market is relatively¹⁰ low at the moment. Take office buildings as an example. The ROI is only around 5 percent."

 

　　In comparison, the ROI from Pingan's acquisition of the Lloyd's building is estimated at 6-9%.

 

　　And with the UK economy still struggling, most politicians and business leaders in the UK are welcoming the potential for more Chinese investment.

 

　　Professor Bhalla says it's quite understandable.

 

　　"The investment in land often is a different intention. In these cases, all these investments which we've recently seen from China are the ones that are going to generate jobs, are the ones going to generate development of real estate, which means real money. And we've got to remember these investments often are long-term investments, and are passive investments, not active in interfering¹¹ in each other's affairs. And that's often welcomed by any advanced economy."

 

　　But given that China's economic growth has been showing signs of slowing down, some are cautioning that Chinese investment could quickly retreat, as Japanese investment did in the 1990s.

 

　　But Professor Bhalla notes Chinese investment is not nearly as deep as Japanese investment was some 20-years ago.

 

　　"I think the major worry I would say for the advanced economy or for the Chinese investors is how long do they see the investment. Is it just an attractive financial returns they are looking forward to making in three to five years or ten years. Or is it something that can be part of their long-term investment strategy."

 

　　For CRI, I'm Tu Yun in London.

1 analyst   

n.分析家，化验员；心理分析学家

参考例句：

• What can you contribute to the position of a market analyst?你有什么技能可有助于市场分析员的职务？
• The analyst is required to interpolate values between standards.分析人员需要在这些标准中插入一些值。

2 wharf   

n.码头，停泊处

参考例句：

• We fetch up at the wharf exactly on time.我们准时到达码头。
• We reached the wharf gasping for breath.我们气喘吁吁地抵达了码头。

3 previously   

adv.以前，先前（地）

参考例句：

• The bicycle tyre blew out at a previously damaged point.自行车胎在以前损坏过的地方又爆开了。
• Let me digress for a moment and explain what had happened previously.让我岔开一会儿，解释原先发生了什么。

4 cosmopolitan   

adj.世界性的，全世界的，四海为家的，全球的

参考例句：

• New York is a highly cosmopolitan city.纽约是一个高度世界性的城市。
• She has a very cosmopolitan outlook on life.她有四海一家的人生观。

5 straightforward   

adj.正直的，坦率的；易懂的，简单的

参考例句：

• A straightforward talk is better than a flowery speech.巧言不如直说。
• I must insist on your giving me a straightforward answer.我一定要你给我一个直截了当的回答。

6 landmark   

n.陆标，划时代的事，地界标

参考例句：

• The Russian Revolution represents a landmark in world history.俄国革命是世界历史上的一个里程碑。
• The tower was once a landmark for ships.这座塔曾是船只的陆标。

7 maker   

n.制造者，制造商

参考例句：

• He is a trouble maker，You must be distant with him.他是个捣蛋鬼，你不要跟他在一起。
• A cabinet maker must be a master craftsman.家具木工必须是技艺高超的手艺人。

8 credible   

adj.可信任的，可靠的

参考例句：

• The news report is hardly credible.这则新闻报道令人难以置信。
• Is there a credible alternative to the nuclear deterrent?是否有可以取代核威慑力量的可靠办法？

9 investors   

n.投资者，出资者( investor的名词复数 )

参考例句：

• a con man who bilked investors out of millions of dollars 诈取投资者几百万元的骗子
• a cash bonanza for investors 投资者的赚钱机会

10 relatively   

adv.比较...地，相对地

参考例句：

• The rabbit is a relatively recent introduction in Australia.兔子是相对较新引入澳大利亚的物种。
• The operation was relatively painless.手术相对来说不痛。

11 interfering   

adj. 妨碍的 动词interfere的现在分词

参考例句：

• He's an interfering old busybody! 他老爱管闲事！
• I wish my mother would stop interfering and let me make my own decisions. 我希望我母亲不再干预，让我自己拿主意。