[photopress:property_Michael_Klein.jpg,full,alignright]According to an annual report released Wednesday by the World Bank (WB) and its private sector arm, the International Finance Corporation (IFC) China was a standout in regulatory reform from 2006 to 2007 for introducing protection of private property rights and a new bankruptcy law.
Doing Business 2008, the fifth in the annual report series of the WB and the IFC said the Property Law and the Enterprise Bankruptcy Law contributed to an improvement in the ease of doing business in China.
China’s new property law, due to come into effect from October 1, puts private property rights on equal footing with state property rights, while the new bankruptcy law, which took effect on June 1, gives secured creditors priority to the proceeds from their collateral.
The report said that construction in China had also became easier, with the time approval of electronic processing on building permits reducing by two weeks.
Michael Klein, World Bank/IFC vice president for financial and private sector development, seem in our illustration, said the report finds that equity returns are highest in countries that are reforming the most.
Doing Business 2008 ranks 178 economies on the ease of doing business. While China is quickly climbing up the rankings it is not yet in the top 25. The rankings are based on ten indicators of business regulation that track the time and cost to meet government requirements in business start-up, operation, trade, taxation, and closure. Leading the charge is Singapore followed mainly by European countries.
Astounding that Singapore should pip the UK to the post as it is possible to get off a plane first thing in the morning and have a fully fledged company in leased office space up and running before lunch. The result of that is that businesses wanting to expand into the European Union typically chose London as a base. And, as a direct result, real estate prices in London are among the highest in the world and steadily climbing.
Source: People’s Daily Online