Reasons to Invest in China

ChinaPotential Asia investors might want to look into China right now. The first reason is because of the proposal put forward by the Commerce Ministry that would consolidate foreign investment in China while reducing restrictions and start adjusting the variable interest entitles often used to sidestep foreign-ownership limits.

According to Hong Kong-based Partner at Davis Polk & Wardwell, Anthony Dapiran, if this becomes law it will “push China so much closer to being a ‘normal’ place to do business.” This is partly because the region will no longer have conflicting layers of regulations and bureaucracy will be facilitated as local and central government approvals for most investments will be eliminated.

This could be part of the reason that foreign companies are investing in the region. For example, L Capital Asia just announced its second substantial investment in China. This marks its first investment in an outlet mall throughout the world. The company will be putting in $100m+ in Sasseur Cayman Holding Ltd. – the company that began as a coffee shop but has now developed into four outlet malls, featuring brands that sell excess stock at bargain prices.

So if the trend continues, then China will be becoming an increasingly more attractive region for foreign investors.