Money

Foreign firms take bite out of financial core

By Shen Jingting (China Daily)
Updated: 2010-01-13 10:20

Multinational companies have quickened the pace in leasing office space in Beijing, showing confidence in the Chinese market and giving a clear sign that the recovery from the global financial crisis is continuing.

In the fourth quarter of 2009, foreign companies were involved in the leasing of 52 percent of the office space leased in the capital, up 20 percent on the third quarter.

Julien Zhang, managing director of Jones Lang LaSalle, Beijing, said demand from State-owned enterprises dominated during the first three quarters but multinational companies became active in the third quarter, participating in several large transactions.

"They (international companies) consolidated and expanded their existing office space, with some moving to higher-quality space, which will help them eye future expansion in China once the economy fully recovers," Zhang said during a news conference yesterday.

Foreign companies in the finance and banking sectors as well as those from the hi-tech sector and the pharmaceutical industry were among the major players.

Office buildings in the central business district and along the financial street were the favored locations.

Standard Chartered Bank (China), signed a tenancy agreement for part of the World Financial Centre with Henderson Land Development Co last October. The company will occupy approximately 9,000 sq m in the East Tower and expects to move in this year.

"The East Tower will be named Standard Chartered Tower and we see this as a further development of our bank," Eva Chow, head of corporate communications at Standard Chartered Bank (China), said.