Wang Jianlin, chairman of Dalian Wanda Group, talks to UK Prime Minister David Cameron on Jan 24, 2014 in Davos, Switzerland.(Photo/Provided to chinadaily.com.cn)
No homebuying sprees expected
The Brexit will have a limited impact on Chinese homebuyers in the United Kingdom because most of those purchases are not made as investments, but for other reasons, said Charles Pittar, chief executive officer of international property listings portal Juwai.com.
Education is the chief reason Chinese buy houses in the UK, Pittar said.
"For most Chinese buyers, it is a long-term game. If they want to buy an apartment for their children in preparation for college, they shouldn't be too worried about the Brexit," said Pittar.
In a Juwai survey conducted in early June, 51 percent of the 411 Chinese real estate professionals and investors who were polled had temporarily postponed their property transactions in the UK pending the outcome of the vote.
Justina Fan, executive director at global property service provider DTZ/Cushman & Wakefield, said that the Brexit will have little effect on the UK housing market.
"For one thing, the UK's housing market is always in short supply. Stable population increase, as well as changes of people's mindset, resulting in an increasing rate of people living alone, have helped to boost the demand for housing. But in terms of supply, development of new housing projects is limited by conservative urban development ideas and extremely high land prices," she said.
Companies may face challenges
Chinese enterprises may face challenges in using Britain's position as a gateway to expand their businesses in other European countries after the United Kingdom voted to leave the European Union, according to an insider.
Andrew Yuan, managing director of Hytera Communications UK, said Chinese companies in Britain are likely to see their businesses hurt by the decision, as many of them use UK headquarters to cover their business in other EU countries.
"Take my company as an example. About 45 percent of our revenue last year came from European countries outside the UK. I am worried that about one-third of our businesses may be dampened if the UK actually leaves the EU."
Hytera, a company based in Shenzhen, Guangdong province, specializes in designing and manufacturing mobile radio communications equipments.
It set up a representative office in the UK in 2005, which has evolved into a headquarters covering markets in western and northern Europe.
Zeng Gang, a senior researcher at the Chinese Academy of Social Sciences' Institute of Finance and Banking, said the Brexit would hit the British pound, causing a negative impact on pound-related assets in Britain.
"Chinese companies owning assets in Britain should readjust their strategies and look to diversify their investment in other European countries if they plan to expand their influence in Europe," he said.
