China Property Investment

Implications: China real estate markets are a challenging environment that requires a tricky combination of managed risk taking and properly resourced management teams on the ground in China. Morgan Stanley are one of very few foreign institutions that have got the balance right.

Analysis: Covering China real estate means more than just Shanghai and Beijing. It means getting out into a variety of markets at the same time, it means having a team on the ground, it means taking risks and having strategies to manage those risks, it means proactively managing partners and government relations at all levels. Morgan Stanley have rolled up their sleeves and got on with it with a well resourced operation. Only a couple of others have found this formula on any significant scale as yet and are close behind. From what I see and hear others are more exposed to risks, particularly development and partner risk which need intensive management on the ground.