An overdue reality check about easy gains to be made on property investments on the mainland is under way by international fund managers, according to industry participants.

Unexpected tax charges, higher than forecast legal fees, a lack of transparency and cost add-ons have forced a rethink by the funds on profit margins and investment strategies, they said.

Ren Rong, the chief executive of Harvest Capital Partners said that after rushing too quickly into making investments on the mainland when the central government opened the door in 2003, international investors were now pausing to review their strategies, chiefly because of unexpected regulatory challenges, he said.

South China Morning Post