China may restrain foreign investment in real estate
(Bloomberg)
Updated: 2006-06-23 09:24
Citigroup, Morgan Stanley
Citigroup's property unit plans to increase investment in China's real estate
market 10-fold to $800 million in the next three years, Stephen Coyle, chief
investment strategist at Citigroup Property Investors, said June 6.
Citigroup Property Investors will buy office, retail and industrial
properties, Coyle said in an interview. The New York- based unit will also
invest in residential projects in "secondary cities'' where prices have more
potential to rise, he said.
Morgan Stanley, the world's third-largest securities firm by market value,
plans to triple its investment in Chinese property to $3 billion this year,
Sonny Kalsi, global head of real estate business at New York-based Morgan
Stanley, said in an interview in Tokyo on March 13.
"It's possible'' that the new measures could delay investment plans by
foreign companies such as Citigroup and Morgan Stanley, said Deutsche Bank's Ma.
"It will be very difficult to distinguish who are the speculators and who are
the ones with real demand. It's possible that the policies could hit both.''
Richard Tesvich, Citigroup's Hong Kong-based spokesman, declined to comment.
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