LAUSR

Market reforms and the relaxation of rules governing inbound investment have contributed to the growth of foreign investment in Chinese real estate. Although the property sector remains one of the most tightly regulated, property developers from Greater China have enjoyed relative success in the mainland market. Conventional explanations of such investment outcomes have often drawn attention to economic complementaries and cultural proximities. By tracing the development of Hong Kong investment in China's real estate from the late 1970s to the present, this paper demonstrates the importance of considering (geo)politics at both the national and ground levels in analysing bilateral economic relations. The geopolitical prerogatives of national sovereignty structure economic interactions between the Chinese state and the Special Administrative Region, while popular politics from the ground level up interacts with state-level geopolitics to affect and change policy outcomes. The shifting dynamics demonstrate that the cultural meaning and value of foreign capital are not static or fixed but rather open to continuous re-negotiation and contestation.