China Search International |Guide to China’s Property Investment Sector

The China Opportunity

The world’s largest online economy

China already has the largest online population in the world at 642 million users.

Astonishingly that’s only 47% of their population, so their capacity for growth is enormous.

642

277

243

109 109

57

2147

87

20

86

54

90 94

Online Population MMs

% of Population online

China

Or to put it another way…

UKAustralia

= 50 million online users

They’re becoming affluent

The middle classes are expanding beyond the largest cities more rapidly & in greater

numbers than any market has ever witnessed. The number of Middle and Affluent

Consumer HOUSEHOLDS in China will be the same as the US by 2020.

1

13

34

61

57

36

12

53

69

66

39

23

Household annual disposable income

(USD) thousands

Upper affluent >200

Lower affluent $16 - $31.5

Middle Class $9.5 - $16

Emerging Middle $6 - $9.5

Aspirant $4 - $6

Poor <$4

Households MillionsHouseholds Millions

Source BGS Consultants

Urban household disposable income 2020Urban household disposable income 2010

Baidu is China’s equivalent of Google…

Baidu is the major search engine in China with over 556 million regular users. That’s the

equivalent of all the Google users in Europe and Asia combined.

Population of China: 1.35 billion

Online Population: 618 million

Baidu’s Reach: 556 million

Chinese Real Estate Investors

• The enormous over-capacity and recent

slowdown in China’s domestic property

market has pushed many wealthy people to

diversify their investments into offshore

assets.

• Immigration can play a key role in the

purchase on an overseas property – more

than 60% of wealthy Chinese citizens have

seriously considered immigration in the past

3 years.

• The UK, Australia, Canada, and the US are

the most popular destinations for Chinese

real estate investment.

• In the year to March 2014, mainland Chinese

buyers accounted for nearly a quarter of all

foreign purchasers of residential real estate

in Canada, spending about $13.8bn.

• 70% pay cash for property purchases.

From million-dollar trophy homes to more modest condominiums, Chinese buyers are the

fastest-growing segment of global property buyers with over US$7.2 billion in sales in

2009 and US$37 billion in 2013.

Motivations for Property Investment

Lifestyle – Government restrictions, worsening

pollution and decrepit health and social services

are key factors in motivating Chinese nationals

to immigrate or store their wealth overseas.

Investment – 65% of wealthy Chinese are

already in the process of immigrating or have

substantial investments overseas.

Education – 85% of wealthy Chinese families

look to overseas institutions to educate their

children. Property is often purchased for their

children’s accommodation during this time.

Property Value – The property prices in most

major US cities are less than 50% of the property

prices in Shanghai. Overseas investment is a

much better value proposition for the Chinese.

There are a number of factors behind the world wide increase in Chinese overseas

property investment.

How Chinese Search for Property

Your website is essential to attract Chinese

investors. 65% of wealthy Chinese consider the

internet to be the primary source of information

for property investment.

Make sure your website is mobile friendly as

more than 50% of all web sessions is conducted

from a mobile device in China.

Less than 1% of Mainland Chinese speak

English. It goes without saying that the more of

your site you put in Simplified Mandarin, the

better.

Make sure your site contains the key topics the

Chinese want information on. It’s more than just

the property listing.

Information about your company is equally

important – the Chinese want to know that you

have a good reputation (include information on

any awards you or your sales team may have

won.

Also include information on the

country’s property laws, immigration

requirements and education

standards.

Increasingly, Western real estates agents and property developers are providing web

sites that cater to the Chinese property investor.

Case Study: Meriton

• Harry Triguboff, a self-made property tycoon and founder of the Meriton Group, says compared to

the more speculative inflows from other countries, Chinese investors are consistent buyers.

"I've never experienced any other foreign nationals that bought in that volume and they've never

bought so consistently," Mr Triguboff said.

"They're not very concerned about the amount of return, they want to see capital gain, and I think

that now with the dollar coming down... it will help us to sell even more."

• Fifteen per cent of Meriton's sales in 2012 were to offshore Chinese investors.

Meriton is one of Australia’s largest real estate groups. Thanks to their marketing efforts

in the region, China now represents 15% of their sales.

Introduction to China Search International

China Search International

Overview

We are Baidu’s International Partner, not an agency.

That means our business model does not rely on

charging management fees.

In fact – the only charge you or your clients will ever see

from us is a 2.5% processing fee to cover our banking

and foreign exchange fees. In essence we are paid by

Baidu to sell Baidu.

With offices in Singapore, San Francisco, Sydney, and

London we’ve guided hundred of clients through the

complex Baidu processes.

We’ve all worked previously at major brands / agencies

in the UK, USA, and Australia so we understand your

requirements and the importance of managing your

client’s expectations.

The result is that we’re well-placed to help your clients

launch on Baidu in the most cost effective and hassle-

free way.

Some of our more well known clients

We are Baidu’s International Partner. Our clients are predominantly international companies

looking to capitalize on opportunities in China.

Our Free Services

• Translation of all documents for submission

to Baidu

• Facilitation of the account opening process

• Provision of bespoke keyword lists where

required

• Translation and volume checking of

keywords

• Provision and / or translation of ad copy

• Loading of keywords into the client’s Baidu

account ready for launch

• Bid Management API application on the

client’s behalf

• Full training on how to manage accounts on

Baidu (use of the Baidu console)

• Issuing of invoices in the client’s preferred

currency and transferring of funds into the

client’s Baidu account.

• Provision of research decks on relevant

sectors and updates in the Chinese market

• Pitch Support (provision of keyword

proposals, research and recommendations)

CSI / NTENT’s role is to help International companies to launch on Baidu.

Getting in Touch

Should you have additional questions,

please don’t hesitate to get in touch:

Kevin J. Carney

VP, Agency Partnerships & Strategic

Accounts

KCarney@ntent.com

(646) 561-8643

www.baiduint.com