CHINESE INSURERS SNAP UP LOCAL PROPERTY

Changed regulations that allow China-based insurers to invest in certain property projects has led to foreign institutional investors being frozen out by local property developers, according to a report in South China Morning Post . Richard Wong of CB Richard Ellis (Beijing) said that many landlords in Beijing were negotiating with major insurers. “Landlords are willing to sell properties to local insurance companies rather than foreign investment funds because of the faster transaction process”. The CIRC will not be releasing full details of the relaxation of the restrictions for the next few weeks, but many Chinese insurers have already set up subsidiaries to invest in real estate projects. These insurers are also willing to accept lower yields — in the region of 6% to 7%, while international investors look for 8% or more, the report claimed.