Recently, Mr. Feng Lun, Chairman of the Worldway Wealth Club and a renowned Chinese entrepreneur, delivered an important speech at the 2018 China-Europe Trade and Investment Forum. The forum was hosted by the EU Working Committee of the China Association for the Promotion of European-Chinese Economic and Technical Cooperation, co-organized by the Worldway Wealth Club, and undertaken by the Worldway Group and Huiyun Capital Group, with sponsorship from Huiyun Real Estate. When discussing new opportunities for European investment and individual investors, Mr. Feng repeatedly mentioned the exclusive insights shared by Worldway at this forum!
During the roundtable forum, Mr. Feng expanded on the Worldway perspective that "individual investment is an important way for Chinese capital to enter Europe." With his brilliant and unique vision, insightful points, and witty remarks, he resonated strongly with professionals from all walks of life! What other profound insights did this witty, humorous, and wise speaker share? The original content of his speech on-site will help you better seize European investment opportunities!
Mr. Feng Lun, Chairman of the Worldway Wealth Club and a renowned Chinese entrepreneur, attending the "2018 China-Europe Trade and Investment Forum" roundtable seminar (first from the right)
Dictated by | Feng Lun; Compiled by | Worldway Editors
Today, when talking about China-Europe investment, Dr. Xing Xinli (Chairman of Worldway Group) just mentioned that individual investment is a very important form of investment in Europe. Individual investment is mainly in real estate. Since 1999, Chinese real estate has become a focus and a pillar of our economic development. We have been regulating the housing market since the price was 2,000 yuan per square meter, and as everyone has seen, it has been regulated until now.
Under these circumstances, many people calculate their cost of living, as well as education, air quality, environmental protection, food, etc. Collectively, this is their quality of life, so they spend a lot of time focusing on Europe. In fact, the European residential market has also risen in recent years with the start of Chinese immigration, but there are several very different aspects to buying a house there compared to China.
Dr. Xing Xinli just asked me to introduce this to everyone. The biggest difference is that when you buy a house, the house is yours, but the land belongs to the state. Rent is paid for 70 years at once. Do you need to renew it after 70 years? The latest legal interpretation is that it will be decided based on the laws and regulations at that time. This is a big change from what was said before about not paying, which means that in China, you may have to pay after 70 years. Therefore, a revision in the Civil Code specifically emphasizes that it must be based on the laws and regulations at that time. If a law is issued when the house has 40 or 35 years of property rights left, stating that you have to pay for future renewal, the value of the house might have doubled by then, but the money you have to pay might offset the appreciation. There is a lot of uncertainty here. But European houses are very simple; they have permanent property rights and are privately owned, so this is something that many investment immigrants in China feel very secure about. The expectation is certain, and the house can be held permanently. The second difference is that we buy houses based on the gross floor area, but in Europe, most are calculated based on the usable area.
These two differences actually lead to a great sense of fulfillment for many people when they buy houses in Europe. We now call it a "sense of gain," meaning that what you have is truly yours and can always be yours. It is even greater than the value you expected, as the actual usable area of the house is larger. This is also why residential property has become the most important product for European investment immigration in the last decade, and it is also a mainstream form of individual investment.
The third difference is that its educational resources and environmental resources are highly competitive. When living in Beijing and facing increasing pressure to buy a house, it actually creates many new combinations of "using the same money to gain more happiness." For example, there is a lady in Beijing who lives between the third and fourth ring roads in a small apartment of less than 100 square meters. She thought about it: if she continues to work in Beijing, she will have to worry about money for the rest of her life, the air is not good, and she doesn't feel secure about the food. So what to do? She sold the house for 12 million yuan, bought a villa in Erhai, Yunnan, for less than 3 million yuan, and had 10 million yuan left to invest in principal-protected wealth management in Beijing. She used the income from the investment to rent a high-end apartment in the Beijing CBD. As you know, if the wealth management return was good a couple of years ago, a return of 700,000 to 800,000 yuan was normal. She spent 500,000 yuan to rent an apartment in the best part of Beijing, used the remaining money for daily life, and still had cash in her account. Thus, her life became happy. Living in a villa in Erhai and an apartment in Beijing, she was almost living off passive income, letting the bank work for her and letting private banks help her make money.
The middle class is increasingly realizing that such stories can also be realized in Europe. If you can sell your property for 12 million yuan, you will have over 1 million euros, which you can reallocate and rearrange your life in Europe. It will allow you to live a very happy life, even if it is not "Zen-like." This is a very interesting thing. So, comparing houses, if we assume we are rational economic agents and do the math, buying a property in Europe while arranging your education and life is a good choice. Therefore, our choice of immigration has lost its ethical and political colors; it is actually a lifestyle.
When our mobile phones can be connected globally, our footsteps and thoughts are also globally connected. We can choose to live wherever we think is suitable on Earth, and let the money in our pockets contribute to our happiness! In addition to individual home purchases, there is also institutional exchange in the real estate industry. The European real estate industry and the Chinese real estate industry have always had significant exchanges in several aspects. For example, Europe does a very good job in green building. Therefore, regarding energy conservation, environmental protection, and green building issues in real estate, the Chinese real estate industry has always had a lot of exchanges with Europe, including the introduction of some environmentally friendly materials and energy-saving technologies into China. There are also some Chinese companies investing in Europe in materials and equipment related to construction, such as German doors and windows; what we do is related to environmental protection and quality. Many of the best doors and windows we first introduced were imported from Germany. We also know that in the real estate industry, business formats are also very important.
In addition to residential properties, fields such as commercial elderly care and vacation properties are also very attractive to the real estate industry, given the mature markets and developed economies in Europe. Therefore, we also see that companies like those in France that provide elderly care real estate are actually quite active in China. There are also some special ones, such as Italy, which integrates supermarkets, restaurants, and gardens together. Such a huge store, including the fast-food restaurant format in the store, was brought from Europe to China and entered our shopping centers. So, from the perspective of the real estate industry, we also have a huge space for exchange with Europe, and many business formats that make our lives richer will be introduced from Europe to China.
Of course, there is much more. We are already familiar with major luxury brands entering the windows of large shopping centers, which we can see at a glance. But a regrettable point in this regard is that real estate developers don't make much money. Wherever you see LV or Hermès, please show some sympathy for the real estate developers. Even so, with our small sacrifice, we have contributed to the introduction of these European brands, enriched our lives, and contributed to China-Europe trade and investment. I believe everyone is still very happy. Thank you.
The 2018 China-Europe Trade and Investment Forum was attended by ambassadors, ministers, counselors, and other officials from 18 European countries to China. More than 1,000 guests, including political leaders, business magnates, and academic experts from China and abroad, participated actively. Many well-known media outlets reported on the event throughout, and the venue was packed with people, requiring additional seating! This is the first large-scale China-Europe forum organized by a non-governmental organization in China, and it will go down in history! It is encouraging and inspiring!
The successful holding of the 2018 China-Europe Trade and Investment Forum once again confirms the professional brand strength of Worldway Group and its status in the European investment immigration industry!
Since its inception, Worldway Group has been focusing on investment immigration, creating countless "firsts" in the industry. Over the past 20 years, Worldway Group has established multiple branches across the country, set up three national documentation centers in Beijing, Shanghai, and Shenzhen, and established multiple overseas customer service centers in Asia, North America, and Europe. It has consolidated its brand appeal and created a glorious image as a leader in the investment immigration industry and one of the top 500 Asian brands.
Reasons to Choose Worldway for European Investment Immigration
Worldway has been deeply involved in the European investment immigration industry for many years. With a spirit of innovation and the courage to be a pioneer in the industry, it uses professional and excellent business capabilities and comprehensive services to promote industry development. With good government relations, it opens a convenient channel for investors to European countries, helping many families realize their European dreams.
1. In 2011, it was one of the first to introduce the Cyprus Investment Residency Program to China, marking the first year of European investment immigration;
2. In July 2013, it was one of the first to join hands with the Greek Embassy in China to introduce "Greek Property Immigration" to China;
3. It pioneered the "2013 European Immigration Year" and held China's first large-scale "European Property Exhibition" with a European theme in cities such as Beijing, Shanghai, Shenzhen, and Qingdao, sweeping the trend of European investment immigration across China;
4. In 2013, Worldway Group initiated the "Shanghai Declaration," signed by developers and lawyers from multiple European countries, setting a benchmark for the European property immigration industry;
5. The "Paphos Night" event held by Worldway Group in Beijing and Shanghai was the first investment and cultural exchange event in China with a European city as its theme.
Currently, Worldway Group's core European business covers immigration and EU passport programs for countries such as Greece, Malta, Cyprus, Portugal, Spain, and Ireland. Europe is entering a golden decade; seize the best time for European investment. One step ahead, always ahead! Consultation Hotline: 400-138-2929