With our principal’s bi-cultural background, business experience and sound connections with China, we help western companies establish operations in China. We provide the efficient way to enter the market to reduce the impact of language and cultural barriers.

We share with you the Chinese approach of negotiations; how to negotiate a successful conclusion; how to socialize for success; how to cope with specific problem of living and working in China; how to fit into Chinese cultural expectations in order to achieve your goals…

Here are few examples of understanding Chinese business culture:

Decision Making – Chinese never make quick decisions. The Chinese want to be included in the decision-making process at a degree of collaboration that to a Western manager may seem unnecessary for relatively simple points The Chinese want to discuss the issue, ask for feedback and explain the decision’s rationale.

When “Yes” Means “No” – It’s practically a cliché that Chinese people do not like to say no in a business setting nor admit that they don’t understand something. Unlike in the States, where we’ve been told since grade school that there are no dumb questions, the Chinese have not been encouraged to express puzzlement. When Chinese respond to your question or request, they always say: “No problem.” In most cases, it is not an affirmative response. It may be a product of the cultural tendency toward politeness or reluctance to disappoint. A “No problem” usually means “I’ll try.” You still need to engage in follow-up to an extent often considered unnessary in western business practice and they also may not tell you if things start going wrong.

Connections - The business culture's high regard for relationships applies to people outside the company as well as inside. In fact, the very viability of a business depends on relationships with vendors, distributors and, most important, the municipal, regional and central government ministers whose disfavor can cripple a company. Entire books are written on this art of the relationship, known as guanxi (gwan-zhee), or connections. Guanxi can take the form of a night of karaoke with the local fire department regulator in order to get a new computer room plan approved. Or it could mean hosting a banquet with a customs official to make sure precious hardware shipments arrive at some point in the 21st century. At the highest levels, it could mean bringing your CEO to China to shake hands with the minister of a key industry sector that represents lucrative potential business.

The allure of the Chinese market has been attracting entrepreneurs to its shores for centuries. However, history is replete with examples of companies that have tried and failed to penetrate the inscrutable Chinese business environment, often incurring significant financial losses in the attempt.

It is certainly possible for western executives to learn how to operate successfully in the Chinese environment but the learning curve is so steep, the likelihood of getting it right the first time is virtually nonexistent - without the help of someone with prior experience of doing business in China. Even better, of course, would be the help of someone native to the culture - and who already has a proven track record of exemplary performance in your own culture as well as in theirs.

For a free consultation or to find out more about our services, please do feel free to contact us.

INVEST SHANGHAI REAL ESTATE

Why Shanghai ?

Shanghai has emerged once again as the leading commercial and financial center in Asia generating an impact on business throughout the world. Multinational companies are set to enter China in droves when the nation’s commitments to the WTO are completely fulfilled. Shanghai is developing rapidly, with new construction evident everywhere you look. Modern high-rise buildings have blossomed in downtown Shanghai, and companies throughout the world are demanding a presence in the city. With increasing numbers of multinational companies continuing to set up branches in Shanghai, it has been predicted that annual demand for housing will increase from 3.26 billion SQFT to 3.8 billion SQFT during the period 2000-2010. In the year 2003 alone, 56 billion US dollars of foreign investment poured into Shanghai.

With this continuing demand, Shanghai is exploding in one of the world’s most dramatic real estate booms. Buildings have been shooting up at a record rate, utterly transforming the skyline, as real estate prices continue to soar into the stratosphere. For the year 2006 and beyond, large numbers of quality office buildings are increasingly being scheduled to come on stream. There will also be higher demand for medium sized office buildings as the number of domestic companies grows to match that which has been identified by the central government as a future pillar industry.

The future for the real estate industry in Shanghai, like the high-rises appearing all over the city itself, is indeed "looking up".

Downtown – Bund - the Big Players

The entire stretch of Zhongshan No 1 Road East boasts the famous strip of real estate known as the Bund (Wai Tan). Nowadays, nestled into the backdrop of colonial landmark buildings in a harmonious, mutually enhancing way, you find a dazzling array of upscale amenities in an exquisite restaurant-retail-entertainment complex. Located in the former Union Assurance Building, it opened with a parade of celebrity chef restaurants, designer shops, an art gallery and a spa. Wai Tan #6 has been leased to an American Chinese entrepreneur who plans to turn it into a private club. The state-owned China Merchants Group is renovating Wai Tan #9, and further down, Wai Tan #18--a mixed-use facility with restaurants, high-end shops and offices--is scheduled to open this fall.

New York’s Rockefeller Group is said to be interested in the US$800 million development of Wai Tan Yuan, a 16-acre area that encompasses the northernmost end of the Bund. Hong Kong and Shanghai Hotels Chairman Michael Kadoorie, owner of Hong Kong Peninsula Hotel (and scion of an old Shanghai family) was in town recently for talks on converting the British Consulate buildings, which will be part of Wai Tan Yuan, into another world-class hotel. Investors are also eyeing the former Royal Air Force Club, under the dome of Pudong Development Bank, for a private club.

Shanghai, Hangzhou - Top Investment Sites

A World Bank report released recently concluded that Shanghai and Hangzhou have the best investment climates among 23 major cities on China's mainland.

The report ranked the cities in six categories. Shanghai and Hangzhou were the only two cities to earn spots in the top category.

To rank the cities, the bank surveyed managers from 2,000 companies about the city where they operate. Among a variety of other matters, they were asked to rate their cities' on infrastructure and on the availability of financial services and human resources. The World Bank put together its first report on China’s investment environment last December, when it surveyed these companies in the cities of Shanghai, Beijing, Guangzhou, Tianjin and Chengdu.

Attractive Returns

The sales of luxury property, normally priced above 20,000 yuan per SQM (US$ 225 per SQFT), will exceed the amount of supply entering the market. The high-end market is more stable at present on account of a buoyancy provided by the rapid increase in household affluence, coupled with an influx of investment from other provinces and regions.

Investors from outside Shanghai are said to be buying up at least 30% of the luxury properties. Investors from other provinces are buying 15% of high-end housing. Another 10% is being bought by people from Hong Kong and Taiwan, while the remaining 5% is sold to non-Chinese; chiefly Japanese, American and French nationals.

Investors buying into the market are finding attractive returns, indeed! FPDSavills calculates that yields on luxury apartments are in the region of 8-10%. Villas attract a wider spread of 4-14%, depending on quality and location.

HTBD’s Service for Shanghai Real Estate Investment

Our office has been closely watching and frequently visiting the Shanghai market, conducting studies and analyses, working with local experienced realtors. We are proud to provide a full service package offering the most exquisite options available with swift and meticulous attention to all your investment inquires.