China's investment property market remains attractive. Deal volumes fell steeply in Q1, but this drop is misleading given high interest in undeveloped land, firm cumulative investment demand and the number of large, high-profile deals. The strength of the Chinese economy and easing concerns over trade and politics suggest that activity will pick up over the rest of 2017. We see fast-rising Chinese investment in Hong Kong as a further sign of confidence in prospects for the mainland market. Property yields may fall slightly further in China this year, outperforming the Asian average. Shanghai, Beijing and Chengdu all offer investment opportunities.