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| Investment back on track in Beijing |
| CCTV.COM 2003-05-23 15:05:51 |
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As the panic over SARS gradually dies down in Beijing, business activity is getting back to normal. Today, three real estate investment contracts totaling over 3 billion yuan or some 370 million US dollars were signed in the capital； the biggest in the sector since the SARS outbreak in April.
There were altogether three contracts signed on Friday morning, including the biggest one between the Beijing Municipal Commercial Bank and Beijing Financial Street with a total investment of 1.5 billion yuan or close to 200 million US dollars. The other two are also real estate projects, which include an office building project and an apartment building in Beijing's downtown Xicheng district. The city's Vice－Mayor Liu Jingmin said today's contract shows that investment in Beijing has not been seriously hindered by SARS.
"There has been some impact on investment, but so far it has not been significant. I think SARS is a short－term threat and that it will be brought under control in the near future. After this crisis, I believe the government will learn some valuable lessons and we will try our best to create a cleaner, safer and sounder environment for investors,” said Liu Jingmin.
The real estate sector is among those that felt little impact from SARS. People in this industry say that because their projects are long－term investments, they are not significantly affected by the short－term scare. But they also admit that the development of projects with overseas partners has been slowing down and their way of doing business has been changed by the disease.
"Our long－term projects have not been stopped because of the SARS scare. But we have adapted our ways of doing business: we negotiate with our overseas partners by video conferencing. That saves a lot in costs. Surprisingly, we have learned to be more efficient in our operations and this could benefit us in the future," said Liu Shichun, president of Ficance Street Holding Co., Ltd.
The latest statistics from Horizon and Horizonkey's research show that overseas investment has decreased by 1.2 percent this year to date compared with the same period last year. However, the research also shows long－term investment plans in China by overseas companies have not been affected. Over 55 percent of overseas companies plan to increase investment in China over the next five years.
Most businessmen said they are still confident about the investment in Beijing, but meanwhile they are watching carefully what improvements will the local government make after the SARS crisis.
The vice－mayor said Beijing government is now urgently working on an agenda including further simplifying the approval procedures, increase the government efficiency and other financial preferential policies to restore investors confidence.
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Editor: Han Ling CCTV.com
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