Quality is more important than scale for investment
Updated: 2013-07-15 21:04
China's foreign-bound investment prefers the fixed asset to the other projects. Statistics show, by March 31, Chinese buyers have purchased 12 percent of the real estate assets in the United States with about $8 billion.
The median house price for Chinese buyers is about 2.6 million yuan ($423,500). The risks behind the favor for fixed assets should not be ignored, said an article in the 21st Century Business Herald (excerpts below).
The government is urging the US to lift control on China's investments. The government should reform its investment structure on overseas properties.
Chinese enterprises must deepen their understanding of the future trends in their fields. The quality of investment is more important than the scale. Investment abroad should be prudent and far-sighted. Japan's failure in foreign investments from the 1980s to the 1990s serves as a lesson for China.
The country should strive for more say in the international financial market as well as expand investments worldwide.