Cheap graves prove unpopular with Chinese living

Cheap graves prove unpopular with Chinese living

2014-03-29

Chinese people are grappling with the mounting prices of grave sites, but at the same time, they have shown little interest in low-priced burial places for their relatives.

Around the time of the Tomb Sweeping Festival in 2012, the funeral industry association in Hangzhou put 2,000 graves on offer in the city’s cemeteries, each priced at 2,000 yuan (US$323), in contrast with more expensive burial sites, usually sold at around 10,000 each.

The association has only been able to sell 4.9%, or 98, of these 2,000 affordable grave sites over the past two years.

Representatives of cemeteries around Hangzhou will continue to promote the 2,000-yuan graves during the Tomb Sweeping Festival this year, but they said they are unsure as to how successful sales will be.

The steep selling prices for the majority of graves have put a heavy financial burden on the families of the dead, so the reasons for lackluster sales of low-priced graves has been incomprehensible to them.

“The traditional concept rooted in Chinese culture is the main cause. Many Chinese people still follow the traditional concept of giving the dead a proper burial,” said an official from the funeral industry association in Hangzhou, adding that the family of the dead would rather live frugally in order to afford a better grave, instead of buying a cheap one, so that they would not disgrace their ancestors.

A marketing executive at a cemetery stated that the graves that the Hangzhou government had been promoting were for burial within a wall, while the majority of Chinese still preferred to be buried underground.

Those who had chosen to buy the low-priced graves had actually demonstrated higher cultural values as they could accept environmentally friendlier burial practices, while the others had chosen this kind of burial only out of financial difficulty, he added.

 

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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 (www.heroinnovator.com), 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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