Research On Location Choice Of Chinese Outward Direct Investment In Real Estate

With the rapid development of China's economy,the scale of investable assets of Chinese enterprises,especially real estate enterprises and institutional investors is also expanding rapidly.To some extent,it has led to the development of China's real estate investment and the financial industry related to real estate investment.However,with the disappearance of demographic dividend,the rising of land prices and the stricter regulation on real estate credit,the domestic real estate market is no longer brilliant.In view of the international market,the world's major industrial countries have gradually recovered from the economic crisis,which contribute to the stable expected investment return of real estate.Therefore,Vanke,Xinyuan,Wanda,as the representative of a large number of domestic real estate enterprises have become the main force to promote Chinese capital to overseas real estate market.However,due to a late start,there is a lack of systematic research on the theory and practice of outward direct investment in China's real estate industry at present.Therefore,further research on this topic is of great theoretical and practical significance.This paper is based on the research on the location choice of China's real estate foreign direct investment.Based on clarifying the relevant theories in foreign direct investment and Chinese overseas real estate investment status,combined with the particularity of the real estate industry to expand the scope of application of the general theory of foreign direct investment,the framework to analyze location choice of China's real estate foreign direct investment has been constructed from two dimensional angle of internal strengths and external strengths.Secondly,based on the theoretical analysis framework,a stochastic panel regression model is established,with a series of reasonable selected proxy variables.Using the statistical data of large overseas real estate investment projects in China,the driving factors of the host country's perspective are tested empirically.The main conclusions of this paper are:(a)China's real estate foreign direct investment has increased year by year considerably;(b)China's real estate foreign direct investment mainly concentrated in developed countries or regions;(c)the transparent real estate market,stable social environment,long-term investment value and loose financial environment in host countries are the main driving factors of China's real estate foreign direct investment;(d)distance,culture and exchange rate,as important variables of general foreign direct investment theory,are not significant for foreign direct investment in real estate.