HONG KONG'S property agents are making cautious moves into the Chinese market. Most prefer to do the majority of their business from the relative safety of offices inside of the territory. Physically setting up an office across the border is full of problems many companies can do without. A number of agents are now operating in China mainly through joint ventures with local government. Nicholas Pang, head of research at Nomura Securities, said: ''Companies generally try to set up joint ventures because it is far more difficult to run your own office. ''In China, you have to have a good relationship with the Chinese authorities otherwise working there will prove quite difficult.'' L & D Associates, Hong Kong's largest local agent, has a joint venture office in Shanghai and is due to open another one in Beijing. Amelia Lau, acting group general manager, said: ''There are quite a number of local property agents trying to move into China. ''The competition is heavy. Not only the small-to medium-sized companies are trying to set up but the big firms as well.'' Miss Lau believed the pay-offs from the Chinese market would be long term. With regulations in the sector only just coming into force, it was essential that all angles were given the closest scrutiny, she said. John Gates, sales director at brokers Cresvale Far East, said: ''China property is not a particularly good investment at this point in time. ''The market has run far too far ahead. ''Anyone thinking of setting up an office there would have to be looking at a long-term investment.'' Some analysts believed the package of measures to halt property speculation were good for developers' long-term prospects. More regulation and a subsequent stronger market would benefit the big players.
