China and investing there

[lukas]

Welcome all,
I read western post on India
and both china and India are very interesting markets.
I anyone read the Australian two days ago the Shangri la hotel chain owns 47 hotels world wide and over the next 4 years are looking at putting 40 5 star hotels into these market.
and are doing currently a 3.8 billion dollar fund raise on the Hong Kong share market.
investing in either markets has an element of risk and I would not invest in either unless it was in the form of joint venture with a company in that market.
I am currently doing a project where we equity lend into china and will be looking thru a couple of investment groups into other markets.
an interesting area to invest in
would like others views on investing in these types of markets
Cheers

 

[marc]

Hello Lukas,
Yes this is the first time this type of lending has been done in this format so it is a bit of ground breaker and so far so good.
with out going into the mechanics of it
it relatively a simple structure
you put a cash deposit in a lending bank here that has a lending institution in the country you wish to invest in and that lending institution then does a equity lend on the cash deposit for your purchase in that country.
no money moves
so no currency difference.
when the property is revalued in that country in there currency the equity is lend is cancelled and the term deposit is given back to the investors with minimal risk.
There is a lot more to it then that but that?s the basics of it.
it is not designed for the nz market as the risk factor are thought to be lower then some markets but for china
its for us ideal.
you are a little bit far to come to a meeting on it
but I am doing one for somesoft here on Monday the 22nd.
any question post here and I will answer them
Good luck