China property market marches on

China is being regarded as one of the potential superpowers in the global arena and the reasons behind this consideration are not hard to see. Not only China has been able to repulse the brunt of worldwide downturn owing to sound economic and administrative bases but it has been able to depict outstanding growths in other sectors also. One of them is the property sector and the latest exploits of China Development Financial Holding, Taiwan, is one of the finest specimens of success.

China Development Financial Holding, according to latest information, has sold its stake in the Taipei 101 building for a T$860 million ($26 million) profit to a unit of Ting Hsin International group and this enables the food company to enter the island’s property market. It is to be noted that Ting Hsin has a 37 percent stake in Tingyi and shares of China Development Financial jumped on the news, closing up 5.73 percent on Tuesday at a one-month high. It did manage to do better than a 0.98 percent advance by the broader market. On the other hand Taipei 101 is one of Taiwan’s most iconic skyscrapers, and at one time held the honor of being the world’s tallest building.

What can be the possible consequence? As indicated by the local media, the deal, worth T$3.7 billion, would be the biggest property transaction known hitherto involving a Taipei skyscraper and foreshadowed future possible fund inflows into Taiwan’s real estate market. In addition, advance by the local stock market, fund inflows from Taiwanese businesses operating overseas, and Chinese investments can play great roles in strengthening the local economy.

China Development Financial Holding Corporation was set up in 1959 and it, for decades, has played a prominent role in strengthening Taiwan’s economic development. The corporation has provided crucial investment and financing services to key strategic industries at different stages of the island’s growth and all these have developed Taiwan’s prosperity and industrial development.