Abstract

Abstract Foreign Indirect Investment (FDI) has played a key role in China’s economic transformation. The real estate industry in China has been the second largest sector to fetch FDI for the nation since the opening up of the economy in 1978. Regarded as foreign investors both before and after the handover of sovereignty to China in 1997, Hong Kong based real estate developers (HK developers) took up a lion share of this form of FDI. This article reviews the literature and regulatory frameworks of FDI in the real estate sector in China. It investigates two major problems encountered by the HK developers, namely investment strategy and managing projects, and their solutions through the lens of institutional analysis.

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