Bitcoins being used in the Shanghai property market

Bitcoins being used in the Shanghai property market

Staff Reporter


Three buildings on a 700,000 square-meter plot of land in the Pudong district of Shanghai, China look just like any of the other buildings in the city. What makes them different, however, is that space in these buildings can be purchased using bitcoins, a digital currency that is circulated on the internet and functions without the intermediation of a central authority.At the entrance to one of the three buildings, which is used as the property management center, a bulletin reads “Today’s bitcoin value: 1: 2100.”, meaning that 1 bitcoin has an exchange value of 2,100 yuan (US$344).

The owner of the buildings, Shanda Tiandi Ltd., posts the rate every day based upon fluctuations of bitcoin against the yuan. If a buyer wants to purchase a unit in bitcoins, he will have to convert the price in yuan into bitcoins, based on the day’s exchange rate.

This modern way of payment has attracted many employees from the Zhangjiang Hi-Tech Park in Pudong. Shanda Tiandi’s salespersons told the China Business News Daily that there were several people who had asked about the bitcoin purchases, though none of them placed an order.

The Shanda Tiandi buildings target young buyers, with each unit priced between 800,000 yuan (US$131,300) and 1.5 million yuan (US$246,000). The company said that, its strategy of accepting bitcoins, is aimed at conveying its recognition of the internet’s innovative and pioneering spirit, and that it hopes it can win the approval of China’s internet users, the newspaper said.

Shanda Tiandi’s operational president, He Daxiong, told the daily that “we want to act differently from the traditional ways the real estate sector is run.” Apart from that, the company also wants to see if bitcoins can replace traditional currency in the real world, he said.

About bambooinnovator
Kee Koon Boon (“KB”) is the co-founder and director of HERO Investment Management which provides specialized fund management and investment advisory services to the ARCHEA Asia HERO Innovators Fund (, the only Asian SMID-cap tech-focused fund in the industry. KB is an internationally featured investor rooted in the principles of value investing for over a decade as a fund manager and analyst in the Asian capital markets who started his career at a boutique hedge fund in Singapore where he was with the firm since 2002 and was also part of the core investment committee in significantly outperforming the index in the 10-year-plus-old flagship Asian fund. He was also the portfolio manager for Asia-Pacific equities at Korea’s largest mutual fund company. Prior to setting up the H.E.R.O. Innovators Fund, KB was the Chief Investment Officer & CEO of a Singapore Registered Fund Management Company (RFMC) where he is responsible for listed Asian equity investments. KB had taught accounting at the Singapore Management University (SMU) as a faculty member and also pioneered the 15-week course on Accounting Fraud in Asia as an official module at SMU. KB remains grateful and honored to be invited by Singapore’s financial regulator Monetary Authority of Singapore (MAS) to present to their top management team about implementing a world’s first fact-based forward-looking fraud detection framework to bring about benefits for the capital markets in Singapore and for the public and investment community. KB also served the community in sharing his insights in writing articles about value investing and corporate governance in the media that include Business Times, Straits Times, Jakarta Post, Manual of Ideas, Investopedia, TedXWallStreet. He had also presented in top investment, banking and finance conferences in America, Italy, Sydney, Cape Town, HK, China. He has trained CEOs, entrepreneurs, CFOs, management executives in business strategy & business model innovation in Singapore, HK and China.

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