Xiaokang Family Business School: Investment and Financial Management Handbook

Author: Li Fengwei / Country: Mainland China
Publisher:
Publish Date: 2006-06-01
Features: If you have 100,000 yuan deposited in a bank, it's called money; if it circulates in the market, it's called currency; if it's kept at home, it's just a stack of paper; and if it's used for investment, it's called capital. So, where should money be invested for the best returns? Are middle-class families with some spare funds but no time for financial management also facing the same confusion? This book addresses the issue of investment and provides answers and solutions for middle-class families. Using simple and clear language, it thoroughly describes the basic knowledge and skills of various family investment and financial management methods, serving as a practical handbook that can truly help middle-class families achieve their goals.
Zhu Xiaoyang, a famous Chinese journalist: The (Wenzhou) people's speculative real estate has created many millionaires. According to relevant statistics, in the first quarter of 2004, the average price of housing in Wenzhou's urban area rose to more than 7,000 yuan per square meter. This second-tier city, which is not a central city, has such high housing prices, which is rare. Moreover, the high housing prices are concentrated in the living areas of less than 300,000 households. If family assets are calculated based on the prices at that time, there were already many millionaires in that residential area. In 1998, the average housing price in Wenzhou's urban area was less than 2,000 yuan per square meter, and the government was even worried about 810,000 square meters of vacant housing. Today, however, the price has risen to more than 7,000 yuan per square meter, and the vacant housing in the hands of developers has been completely sold out, creating a completely seller's market. Now, the most talked-about topic in Wenzhou is housing. In public places, you can often hear conversations about buying and selling houses. This wealth effect has made Wenzhou people with a little extra money turn their attention to the real estate industry. In fact, the real estate prices in Wenzhou's urban area have already surpassed those in central cities such as Shanghai, Hangzhou, and Beijing. Due to the price comparison effect, this has led to many Wenzhou people appearing in the real estate markets of surrounding cities like Shanghai and Hangzhou, where they have also faced numerous criticisms. Some data suggests that approximately 70% of the real estate development rights in Wenzhou are held by overseas Chinese and Chinese nationals of Wenzhou origin. Due to the limited financial resources of these developers, most of the projects are small-scale, and their quality and grade cannot compare to the large-scale, high-end projects in Shanghai, Hangzhou, and Beijing. However, their prices have been rising steadily, rivaling those of major cities. To this day, it is difficult to find residential projects in Wenzhou's urban area with prices below 7,000 yuan per square meter, even those built in the early 1980s have been pushed up to 6,000–7,000 yuan per square meter. If we go back to before 1999, the affordable housing in the Xialupu area of the urban area, which had just been completed and put into use, could not even be sold for 2,000 yuan per square meter. Today, the same type of housing in the same area has been pushed up to more than 8,000 yuan per square meter, with some even priced at 10,000 yuan per square meter. In the Puzhou Island area of the urban area, villas that were delivered at the end of 2004 have seen their prices double, with prices reaching over 22,000 yuan per square meter. The sharp rise in real estate prices has made developers delighted, and those who acquired land through agreements a few years ago have made a huge profit. Even with the rapid increase in housing prices, due to the scarcity of supply, in 2004, Wenzhou held five real estate trading fairs, but the vast majority of the projects were from outside the city, with very few from the urban area. In 2004, several new projects launched in the urban area had already entered the secondary market before construction even began, with price increases of tens of thousands to even hundreds of thousands of yuan per unit. Even more astonishing is that these projects, which had not yet entered the pre-sale phase, required deposits of up to 250,000 to 300,000 yuan per application, with delivery and use not expected until at least three years later. In today's booming Chinese real estate market, which has entered a buyer's market, the real estate market in Wenzhou's urban area still remains a seller's market, which is truly unbelievable. P5-6