ABSTRACT
An examination of large Chinese corporations' acquisition of land and property provides an insight into the attitudes of Chinese capitalists towards speculation and risk. 1 Investment in land and property not only offers different degrees of risk and different yields and capital values but is also inherently illiquid and inflexible. Property requires long-term commitment. An understanding of potential performance and scope for hedging risks are also necessary. Changes in the commercial or political environment over which the investor has no control can have adverse consequences for property values. The risks include changes in inflation and investment rates, changes in rent values, and the yield on sales. The lack of liquidity and uncertainty can also create problems.
