We all travelled home yesterday. We are all thankful to have represented the state of Illinois on this important trade mission to China. The individuals we met and the relations we established we hope will prove meaningful for our state in the months and years to come. We were given a great honor of introducing the Asian market to the commercial and residential market in our state. And given the unique opportunity to meet and greet potential Chinese investors in their territory. We ventured abroad to build new relationships that we hope will someday expand economic development opportunities for our state.

A special thanks to Xiannnian Ye, Manager of Business Development for Asia for the National Association of REALTORS, who helped arrange our important meetings in Beijing and Shanghai; and to Bruce Wolf, NAR Treasurer who accompanied us for these important meetings. Also to Jack Wang, our travel agent with China Tours and Travel of Chicago, who helped to arrange optimum service for each of us on this trip. And to Rajinder Bedi, Managing Director of the Office of Trade and Investment, Illinois Department of Commerce and Economic Opportunity and his staff: Norman Li, Managing Director of the State of Illinois Far East Office in Hong Kong; Kitty Leung, State of Illinois Far East Office, Hong Kong; and Zachary Zhao, Shanghai IDCEO office.

Everyone came home from this mission with an expanded view of the world in specific China. All of us have a greater understanding of the China real estate market and Chinese culture and are appreciative to have visited this new unique country. This mission certainly exceeded everyone's expectations. We were served with impeccable service while we were there no matter where we went, hotel, restaurant or airport. This made all of us comfortable in our travels, and certainly has influenced all of us enough to recommend or perhaps return someday to this country far away from here.

Our last few days in China

Top Left: IAR President Robert Zoretich and IAR CEO Gary Clayton meet with Wang Yin, Deputy Director of the China International Promotion Association for Multinational Corporations at the IAR booth at the MIPIM show.

Top right: of the IAR Leadership Team attend the U. S. Consulate Reception hosted in honor of the U. S. delegations travelling to Hong Kong. Shown here are: L to R: IAR past president, Stan Sieron; IAR President Robert Zoretich; James Cunningham, U. S. Consulate General, Hong Kong; Kay Wirth, IAR President-elect and IAR Treasurer Pat Callan.

Photos from MIPIM conference

Hong Kong Harbor













Photo of opening session ceremony at MIPIM conference

MIPIM Conference--Hong Kong

Many trade show booths show futuristic displays of products/services.


Model scale of the "Las Vegas" of Asia Macao at the MIPIM conference...With the Venetian Hotel planned as the largest hotel/casino in the world.

Reporters surround session speaker Chun-Ying Leung who prepares to deliver remarks to conference attendees on the topic "Foreign Direct Investment: Where Is It Going"

MIPIM Asia is the international market for real estate in Asia Pacific. The state of Illinois/IAR booth is located in an exclusive area of the MIPIM show designated for the American Real Estate and Services area. The AREAS event is to provide mutual business opportunities and to offer a platform for U. S. exhibitors to promote their properties and real estate-related services for investors and buyers from the Asia Pacific region and beyond and to provide an overall picture of the U. S. commercial real estate market to foreign investors.

"Asia is not only a destination for investors in the world, it is also a source for foreign investors in the United States and rest of the world," said Stewart Ballard, Chief Commercial Consul of the U. S. Commercial Service in Hong Kong. "We aim to facilitate the expansion of businesses and the expansion of business ties." Hong Kong has one of the four largest stock markets in the world. Hong Kong has a population of more than 6.9 million people with a land-area of more than 1,100 sq. kilometers and over 260 outlying islands. The idea of the AREAS event was facilitated two years ago when the U. S. federal government and states governments were working to organize a real estate event abroad for the first time. The American Real Estate and Services has presented sessions during the entire conference related to foreign investment in the United States. A session will be held tomorrow re: the Investment Climate in Illinois.

There are exhibitors at the show not only from the states but from Asia Pacific properties such as Macao--which will prove to be the Las Vegas of Asia--offering 20,000 hotel rooms with the Venetian Macao hotel designed to be largest hotel/casino in the world. Shown above is a model design of the Macao casino properties.... Other properties and companies represented at the trade show are from countries such as Singapore, Japan, Thailand, Russia, America Samoa, France, Germany, Korea and Australia....as examples.

MIPIM Conference in Hong Kong

From L to R: Tim O'Leary, IAR Trade Mission delegate, IAR Treasurer Pat Callan, James Cunningham, U. S. Consulate General of the United States of America, Hong Kong; Rajinder Bedi, Managing Director of the trade office for the state of Illinois and Stewart Ballard, Chief Commercial Counsel for the Consulate General of the United States of America. All stand in front of the state of Illinois booth at the MIPIM Trade Show Conference in Hong Kong.















The Illinois Association of REALTORS delegates are participating in the MIPIM Asia conference, The World's Property Market in Asia here in Hong Kong...IAR is co-sponsoring a booth with the state of Illinois trade office to encourage foreign direct investment in the state of Illinois. Shown here is IAR Chief Executive Officer Gary Clayton (L) having a discussion at the IAR/state of Illinois trade show booth with Tim and Mansie O'Leary part of the IAR delegation. Leung Chun-Ying presented the opening session for the day, "Foreign Direct Investment Where Is It Going." For those having never been to Hong Kong, ferry travel is common place to get from Hong Kong Island to Kowloon and other points in the area. The skyline is a patchwork of electronic signs mounted on the tops of tall buildings on both sides of Hong Kong harbor. Hong Kong is the financial capital of Asia. By sheer coincidence the Financial Times, the most influential money publication in the Far East, published an eight page feature on September 26th, discussing commercial development in the midwest highlighting the Chicago area. The article focused on how many corporations based in Illinois such as Caterpillar, Motorola and Boeing and others are key players in the Asian market. This greatly emphasizes the importance of our real estate mission here in China. Close to 2,000 influential investors are here at the MIPIM conference to learn more about foreign direct investment. Stewart Ballard, Chief Commercial Counsel for the Consulate General of the United States of America spoke at a state of Illinois sponsored reception introducing the IAR delegation to Asian commercial investors. He reported that 3,700 companies have regional headquarters in Hong Kong making this city a key contributor to the global economy.

Shanghai Real Estate Broker Association Meeting

Buildings with Feng Shui design












On September 24th, members of the IAR delegation met with representatives of the Shanghai Real Estate Broker Association. First order of business for the day was visiting the Shanghai Urban Development Planning Center. The population of the Shanghai area totals 21 million people. Members viewed a full scale working model of the city and its planning for the future. Shown here is just a section of the planned model in this photo. The planning center has a viewing gallery of the city model that encompasses an entire floor in the Shanghai Planning Center. Shanghai will be hosting the a World Expo in 2010.

Next the delegates met with the Shanghai Real Estate Brokers Association. Members were briefed on the growing, prosperous real estate market in Shanghai. The Shanghai Real State Brokers Association was formed just ten years ago. The largest building in the world is currently under construction in Shanghai; it will be finished in 2007. The Shanghai leadership extended greetings to the group and Mingyi Xu, President of the Shanghai Real Estate Brokers Association said their Association looked forward to building a long-term relationship and friendship with the Illinois Association of REALTORS. Xu reported the real estate market in Shanghai is very young and can still learn from other markets. Both NAR Treasurer Bruce Wolf and IAR President Robert Zoretich addressed the joint meeting. "China will be one of the economic leaders in the future and we applaud you for your hard work and vision. This is a magnificent city and we see strong parallels between Shanghai and the city of Chicago," said Robert Zoretich, IAR President. Much of the new construction in Shanghai has occurred only since 1993.
After the meeting, the delegation toured Skyline Mansion, a residential condominium development. This project is 1.7 sq. kilometers and represents one of the highest quality residential developments in mainland China with 530 units.
Later in the evening, the Illinois Department of Commerce and Economic Opportunity hosted a reception for members of the delegation. Rajinder Bedi, Managing Director of the Office of Trade and Investment for IDCEO addressed the delegation and guests present. Mr. Shen Keqiao, Vice President of the Shanghai Real Estate Association also discussed the growing developing real estate market in Shanghai. He reported the peak of the residential market occured in 2004; this was the highest volume reported to date with 35 million sq. meters; the resale market equalled 15 million sq. meters. Since 1999, the new supply of various property sectors has greatly increased yearly. As a whole, the Shanghai market is still very strong and represents one of the less risky markets as compared to other Chinese markets. The recent macroeconomic measures taken by the government to regulate overseas investment in the China real estate market has slowed speculative purchasing and could influence the everyday price of the residential and retail market. The market experienced a slight downturn in 2005 as a result of the new government policy. The China economy continues to be stimulated by the residential market with individuals moving from rural to urban areas. The retail and office market will develop for the long-term. Macro-level regulations drafted by the China Bank, construction and planning bureau will have serious long-term effects on the market, according to Keqiao. These regulations are designed to reduce speculators who have invested in the China real estate market in the last three years, overheating the market.

Photos

Center NAR Treasurer Bruce Wolf tours the property development in Beijing.


Members of the IAR delegation pose for a photo while in Beijing.

Members tour the Glory City development while in Beijing

A grand scale model of the Glory City development in Beijing is discussed with members of the Illinois delegation.

Taking photos at every opportunity is part of capturing the significance of this trip. This is the first time the Illinois Association of REALTORS has ventured to host a trade mission to a foreign country. Thus far, delegates are in awe of the warm, friendly and gracious manner by which they have been welcomed on every occasion.

Shanghai

Unbelievable is all you can say regarding the sights and sounds of Shanghai. Much different than the historic town of Beijing. They call it the New York City of China and that it is. From its shopping districts, to grand hotels, neighborhood restaurants to crowds of people bustling here and there. On the way to the hotel from the airport we passed office buildings and other commercial development that certainly demonstrate the modernistic Asian design with their feng shui design...Major development has taken place in Shanghai over the last 20 years, especially in the Bund area of Shanghai. The Bund area sits along the banks of the Huangpu River. It's neon lights and major illuminated billboards are remindful of a growing, powerful Chinese economy. We visited the Bund area tonight, a congested area filled with tourists and citizens walking and enjoying the night of Shanghai...and what a beautiful night it was. Interesting while Beijing was beseiged with bicycles, mo-peds and mini-scooters are a major mode of transportation in Shanghai, in addition to automobiles...

Tomorrow we meet with the Shanghai Real Estate Broker Association in the morning and tour the Shanghai Urban Development Planning Center. The State of Illinois will conduct a briefing for all travelling delegates tomorrow evening and we will hear a welcome speech from Mr. Shen Keqiao, Vice President of the Shanghai Real Estate Association.

It's All About Food

Some people think what would I eat in China? Well there is about every food for your gastronomical delight. We have been here four days and have not had a repeat dish yet. The food is served in the center of the table on a lazy susan and guests seated at the table turn to the plates they wish and serve themselves to the dish that most entices them. The lunch hosted by the China Real Estate Association was by far the most elaborate. Featured here are some photos of some of the dishes served at that lunch and believe me sometimes you don't know what you are eating but are pleasantly surprised at its superb taste. No trip to China is without a sampling of Peking Duck... we indulged last night.

Afternoon of September 22nd

Close to 200 guests gathered on September 22nd for the International Real Estate Forum to hear representatives of the Illinois delegation give brief remarks. Cameras were flashing as members of the Illinois delegation entered the room which featured a grand stage, and reserved, front-row seating for members of the Illinois delegation. Several media personnel were there to cover this event, including newspaper and China television CCTV, which happens to have regional coverage in the Chicagoland area. Shown here are photos from this event. IAR President Robert Zoretich discussed the Illinois economy and housing market, Steve Bochenek, IAR Legal Counsel discussed the commercial transaction in the United States. Bruce Wolf, Treasurer of the National Association of REALTORS also discussed the national housing market. Other representatives from the China real estate community also gave remarks re: real estate trends and urban development in China; China's commercial real estate market and investment opportunities in China. Quite an honor to participate in this magnificent program.

China Real Estate Association

We were given royal treatment with our meetings in Beijing on September 22nd in Beijing. First we visited The Glory City residential complex currently under construction. Glory city holds the central position in Chongwai Business Circle located in the magnetic field of Beijing. The project covers 888,000 square meters, including a shopping center, business apartments, hotel-style apartments and office buildings. It is the biggest architecture inside the second ring in Beijing. The Illinois delegation were privileged to see the model scale of the development, provided with materials describing the project and were able to tour sample apartments. The red carpet was rolled out for the delegation. Shown here in this photo is IAR President Robert Zoretich and the Chicago Association of REALTORS President Nancy Suvarnamani being escorted to a meeting.

Later that day we met with representatives from the China Real Estate Association. Zhongyi Zhu, Executive Vice President of the Association gave a report to the Illinois delegation present. Below are some of the contents of his remarks. "The real estate industry has been slow to develop in China but has gained speed and growth in the past 20 years. They are developing 500-600 square million meters of residential housing per year. China has gone from a shortage to plentiful residential housing. The residential housing market is one of the pillars of the China economy. The major problem with the China housing market is a shortage of medium to small size homes. In a few of the large cities, housing prices have increased too much. The housing market is not regularized as much as we would like it to be presently. The state has implemented macro-regulation since 2003 on housing development. We are following a people-centric policy--improving housing conditions of the common people...our ultimate goal is proper housing for all people. We are determined to be harmonious and balanced in the future. Our goal is to guarantee healthy development of the real estate market. We also wish to improve the quality of housing to raise the quality of life for all people. We wish to also improve the living conditions of migrant workers. China has recently implemented a new regulation re: foreign capital coming into the Chinese real estate market.We have raised the registration capital of those who want to invest in the real estate market in China. Foreigners who want to buy a home in China, must have lived in China for one year. We want to limit the practices of buying and selling for a profit. We have drawn on other countries who have regulated foreign capital in their markets. Our general policy will not change. The 2008 Summer Olympics being hosted in Beijing will provide a historic opportunity for our city. Projects have already started and have been completed. The Olympic Games will provide a great boost to public utilities and transportation system."

September 21

Here we are at the Great Wall of China

The Great Wall of China



What a busy day--it is 11:15 p.m. We have visited Tiananmen Square, the Forbidden City and the Great Wall of China...What a massive site....spanning over 4,000 square miles. Over 25 emperors lived in the Forbidden City at one time, with its many buildings encompassing over 8,000 rooms...including the Imperial Palace. Many guards stand watch on the property 24/7. Shown here are guards marching in formation during a routine military exercise. The lines to view Chairman of the Communist Party of China Mao Tse Tung's tomb at Tiananmen Square were quite long, and are normally so according to our tour guide. The line snakes and weaves all through Tiananmen Square. Many people crowd Tiananmen Square on a daily basis. The last emperor in the Ching dynasty was overthrown and asked to leave the Forbidden City in 1935. I will post a few photos tonight and will return tomorrow. We have a very important meeting with the China Real Estate Association tomorrow. Our meeting is all day beginning at 8:00 a.m. The group is learning much history of China in this tour mission. The city is busy preparing for the Summer Olympic games set in Beijing in 2008. From our bus tour we got to see the stadium being erected for the Opening Ceremonies for the Olympic Games. What a site--a pretzel of steel with its impressive modernistic design. The city is quite unusual...wide bike lanes accommodate citizens who make their travels through the city on bicycles...the streets are crowded with cars always as more individuals are seeking automobiles as their mode of transportation. Our tour guide has indicated plans are already are underway to make the streets manuverable during the Olympic games with restrictions on who can actually drive a car during that time; such as certain license plates on certain days. We were stuck in a traffic jam for 2 hours returning from the Great Wall to the hotel, makes it feel for many like home in Chicago...but worse...

Bicycles, bicycles everywhere---racks and racks of them...riding in the streets, everywhere. Bicycles are still a major mode of transportation in China. Watch for more photos later after our tour today. Airplane ride actually went by very quickly--although it is a 13 hour flight. Our dinner last night was a traditional seven course dinner...Last night during dinner, NAR Treasurer Bruce Wolf and his wife Mary came by to greet the group and thanked all for attending to taking part in this important mission. Photo above is President Robert Zoretich and his wife Terry eating dinner. Everyone tried chopsticks with dinner--but thankfully there was silverware on table for all as well.
Tomorrow we will meet with the China Real Estate Association and have our International Real Estate Forum.