Shanghai Advanced Institute of Finance - Real Estate Club
Anyone for subprime mortgage bonds? Members of the SAIF's Real Estate Club discuss innovations in China's property market
Dawei Chen is currently studying a part-time MBA at the Shanghai Advanced Institute of Finance, while also working as a Sales Analyst at real estate firm CECL, China. He has also worked for Ming Yuan Group Co. Ltd. and KPMG.
Dawei wants to combine the finance skills he is learning on the MBA course with his practice in real estate, to work in real estate finance in the future. We recently caught up with Dawei to find out about the club and ask him what China-watchers the world over want to know: what's going to happen to the country's real estate market in the next couple of years?!
What are your club's big initiatives this year?
We would like to strengthen our communications with EMBA and Executive Development Program students next semester. We also plan to finish a joint project about the global real estate market with Yale MBAs in 2013.
Who was your most exciting speaker this year?
The most exciting speakers were three senior managers from different domains in the commercial real estate industry. We had an open round-table discussion together. They talked about the fundamentals of domestic real estate from their own experiences and shared their opinions about career development in this industry.
Why did you decide to do an MBA?
The reason I pursued an MBA was to combine my learning in finance within the MBA course with my practice in real estate to work in real estate finance in the future.
What proportion of your students are already invested in the property market?
It's hard to get to know others’ investment in property market, but we are considering collecting money in a fund to invest in the real estate market.
What is your assessment of the relative behaviour of the commercial real estate market and the domestic real estate market over the coming two years?
I think the residential real estate market is frozen while the commercial real estate market is prosperous. It seems the commercial market is too hot but that the residential one is starting to warm up. Therefore the residential market will rise steadily in the coming two years, while the commercial market may face some challenges and dangers in the future.
To what extent does the lack of availability of mortgages reflect a genuine change in the risk profile of borrowers or a risk aversion on the part of lenders?
The lack of availability of mortgages means that moneylenders such as bankers are worrying about unpredictable risk in the domestic real estate market. Therefore, borrowers such as house-buyers or house-builders have no other option but to acquire money from other channels in order to build or buy housing. The extent totally depends on the government’s central policy.
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