Invest Asia Group in North Korea
|
Coming Soon....
Business Operations in North Korea
Forming a Company in North Korea
Company Formation Procedure
International Investors
Corporate Taxes
Where to establish
Tax-Friendly Policies
Financial Markets in North Korea
North Korea Stock Exchange
North Korea Stock Types
Other ways to get exposure to North Korea Stocks
Foreign Exchange
Commodities
Cryptocurrency in North Korea
In September 2017, China banned all ICO (Initial Coin Offerings) from operating in the China Market followed by the closure of all cryptocurrency exchanges located in China. Further crackdowns on domestic dealers engaging foreign exchanges and China based financial institutions in dealing in cryptocurrency have effectively ended all institutional support. However, cryptocurrency is still popular among a segment of the Chinese population who circumvent the restrictions via Hong Kong and access other international exchanges. There are no restrictions on cryptocurrency trading in Hong Kong.
Digital Yuan (DCEP)
The People’s Bank of China (PBOC) has adopted a digitized Yuan (named DCEP), which as of June 2020 is being trialled in four cities within China. Unlike decentralized cryptocurrencies such as Bitcoin or Ethereum, the Blockchain-based Service Network (BSN) adopted by China is a centralized cryptocurrency, to ensure control whilst innovating the next generation of technology. Aside from the geopolitical ramifications of a centralized country adopted cryptocurrency, the question remains – how effective will this be for international payments with capital controls?
Digital Yuan (DCEP)
The People’s Bank of China (PBOC) has adopted a digitized Yuan (named DCEP), which as of June 2020 is being trialled in four cities within China. Unlike decentralized cryptocurrencies such as Bitcoin or Ethereum, the Blockchain-based Service Network (BSN) adopted by China is a centralized cryptocurrency, to ensure control whilst innovating the next generation of technology. Aside from the geopolitical ramifications of a centralized country adopted cryptocurrency, the question remains – how effective will this be for international payments with capital controls?
Property in China
Like most industries within China over the past three decades, the property market has experienced high growth across all tiers of cities with particular emphasis on the Tier 1 cities of Beijing, Shanghai, Guangzhou and Shenzhen. Despite no private land ownership permitted within China, fixed land-grant terms are applied, leading to private ownership of apartments for a fixed period. Typically, for residential use in urban areas, a land lease is granted for 70 years. These land-use rights can usually be transferred, allowing a burgeoning property market.
Due to the size of the country and differences in development across regions, the property market within China substantially differs between cities and provinces. Therefore, the best way to analyse the property market is on a local level as opposed to country-wide analysis.
Due to the size of the country and differences in development across regions, the property market within China substantially differs between cities and provinces. Therefore, the best way to analyse the property market is on a local level as opposed to country-wide analysis.
International Investors & Chinese Property
Yes and no. China has very strict property ownership laws (if they can even be called ownership) and because of this, Invest Asia Group doesn’t recommend purchasing property/apartments in Mainland China. As outlined above, it’s not possible to own freehold land but instead receive a ‘land lease’, which is granted for a maximum of 70 years.
Combined with the fact that foreigners are only allowed to purchase a maximum of one property and need to have lived in China for at least 12 months (in Tier 1 cities, further restrictions also apply). In addition, foreigners are unable to rent out the property/apartment as it’s only to be used for living purposes.
Combined with the fact that foreigners are only allowed to purchase a maximum of one property and need to have lived in China for at least 12 months (in Tier 1 cities, further restrictions also apply). In addition, foreigners are unable to rent out the property/apartment as it’s only to be used for living purposes.
Property Taxes
The property market in China is one of the causes of wealth disparity within the economy. Despite discussions at government level over almost 10 years, a property tax hasn’t yet (as at June 2020) been implemented. Originally, tax rates were going to be implemented at a local level as opposed to national level due to the segmented and polarized market. An apartment in central Beijing is priced substantially higher per square meter than a property in Far Western China.
When purchasing a residential apartment in China there are a number of fees associated in doing so.
As at June 2020, no national or provincial property tax law has yet been introduced.
When purchasing a residential apartment in China there are a number of fees associated in doing so.
- Deed Tax (between 3 to 5% depending on location)
- Transfer Tax (0.5 % - imposed by local real estate bureau)
- Stamp Tax (0.05% - imposed on both buyer and seller)
- Real Estate Agency Fees (negotiable)
As at June 2020, no national or provincial property tax law has yet been introduced.
Best Locations to Purchase Property
During the early 2000s, the property values in the Tier 1 cities increased substantially. With the combination of better employment prospects, earnings opportunities and hukou benefits, there should always be an underlying demand for Tier 1 city properties – Beijing, Shanghai, Guangzhou and Shenzhen. The ‘new’ Tier 1 cities have also significant demand and understanding future 5 – 10 year government policies are a good indicator for future opportunities. In more recent years, property values have been driven by the lower tiered cities (Tier 2 and Tier 3 cities).
Overall, many analysts view China’s apartment market as having a large surplus of empty apartments whilst speculative investing is also rampant due to the limited stable options available to Chinese investors (outside of the housing market). The overall market is deeply segmented between cities, provinces and regions.
Overall, many analysts view China’s apartment market as having a large surplus of empty apartments whilst speculative investing is also rampant due to the limited stable options available to Chinese investors (outside of the housing market). The overall market is deeply segmented between cities, provinces and regions.
Additional Property Information
Within China, it’s the responsibility of the seller or the property developer to provide the following certificates when conducting a property transaction:
- State Land Usage Certificate (国有土地使用权证)
- Construction Land Planning Certificate (建设用地规划许可证)
- Construction Project Planning Certificate (建设工程规划许可证)
- Construction Project Commencement Certificate (建设工程开工证)
- Sales Certificate (销售许可证)
Venture Capital/Private Equity in China
Venture Capital started to become available in China from 2003 onwards as overseas funds began to open offices throughout the country. This further compounded as a number of Chinese entrepreneurs became wealthy from their companies initial public offerings. These first generation of China’s tech titans included Jack Ma, Pony Ma and Lei Jun, among others. Prior to COVID-19, China became the second largest market in the world for Venture Capital, however in the year prior (2019) this dipped due to a number of factors including the trade war and economic slowdown after peaking in 2018.
Some of the most successful VC investments in Chinese companies include:
The China Venture Capital and Private Equity Association is the earliest trade organization promoting development of VC and PE throughout China.
Invest Asia Group operates across China providing a range of investment and consulting services. East Asia is home to some of the largest and richest countries in Asia and provides diverse opportunities for savvy investors seeking to profit from this region.
Some of the most successful VC investments in Chinese companies include:
- UCWeb (Morningside Ventures & Ceyuan Ventures)
- Alibaba (Softbank)
- JD.com (Capital Today)
- Semiconductor Manufacturing International (New Enterprise Associates)
- Meitu (Sinovation Ventures & Qiming Venture Partners)
- Qudian (BlueRun)
- Ucar (Warburg Pincus & Legend Holdings)
- NIO (Tencent)
- Meituan Dianping (Sequoia Capital China)
- Xiaomi (Morningside Ventures)
- Pinduoduo (Tencent & Sequoia Capital China)
- Ele.me (Tencent)
The China Venture Capital and Private Equity Association is the earliest trade organization promoting development of VC and PE throughout China.
Invest Asia Group operates across China providing a range of investment and consulting services. East Asia is home to some of the largest and richest countries in Asia and provides diverse opportunities for savvy investors seeking to profit from this region.
Profit from the Asian Century with IAG.
eCommerce Property Financial Assets Offshore Consulting