----

| x | Annual report pursuant to section 13 or 15(d) of the Securities Exchange Act of 1934 |
|---|--------------------------------------------------------------------------------------|

|  ̈ | Transition report pursuant to section 13 or 15(d) of the Securities Exchange act of 1934 |
|--------|------------------------------------------------------------------------------------------|

| Nevada                                                        | 87-0450232                       |
|---------------------------------------------------------------|----------------------------------|
| (State or Other Jurisdiction ofIncorporation or Organization) | (IRS EmployerIdentification No.) |

----

----

| ITEM NUMBER AND CAPTION                                                                                                                                                                                  |   Page |
|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-------------|
|                                                                                                                                                                                                     |        |
| Part I                                                                                                                                                                                                   |        |
|                                                                                                                                                                                                     |        |
| 1.              Business                                                                                                                | 4           |
|                                                                                                                                                                                                     |        |
| 1A.           Risk Factors                                                                                                                        | 5           |
|                                                                                                                                                                                                     |        |
| 1B.           Unresolved Staff Comments                                                                                                           | 5           |
|                                                                                                                                                                                                     |        |
| 2.              Properties                                                                                                              | 6           |
|                                                                                                                                                                                                     |        |
| 3.              Legal Proceedings                                                                                                       | 8           |
|                                                                                                                                                                                                     |        |
| 4.              [Reserved]                                                                                                              | 8           |
|                                                                                                                                                                                                     |        |
| Part II                                                                                                                                                                                                  |        |
|                                                                                                                                                                                                     |        |
| 5.              Market for Registrant’s Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities | 8           |
|                                                                                                                                                                                                     |        |
| 6.              Selected Financial Data                                                                                                 | 9           |
|                                                                                                                                                                                                     |        |
| 7.             Management’s Discussion and Analysis of Financial Condition and Results of Operations                                   | 9           |
|                                                                                                                                                                                                     |        |
| 7A.          Quantitative and Qualitative Disclosures About Market Risk                                                                                | 9           |
|                                                                                                                                                                                                     |        |
| 8.             Financial Statements and Supplementary Data                                                                                   | 11          |
|                                                                                                                                                                                                     |        |
| 9.             Changes in and Disagreements With Accountants on Accounting and Financial Disclosure                                          | 11          |
|                                                                                                                                                                                                     |        |
| 9A.          Controls and Procedures                                                                                                                   | 11          |
|                                                                                                                                                                                                     |        |
| 9B.           Other Information                                                                                                                   | 12          |
|                                                                                                                                                                                                     |        |
| Part III                                                                                                                                                                                                 |        |
|                                                                                                                                                                                                     |        |
| 10.           Directors, Executive Officers and Corporate Governance                                                                              | 12          |
|                                                                                                                                                                                                     |        |
| 11.           Executive Compensation                                                                                                              | 14          |
|                                                                                                                                                                                                     |        |
| 12.           Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters                                      | 15          |
|                                                                                                                                                                                                     |        |
| 13.           Certain Relationships and Related Transactions, and Director Independence                                                           | 15          |
|                                                                                                                                                                                                     |        |
| 14.           Principal Accountant Fees and Services                                                                                              | 16          |
|                                                                                                                                                                                                     |        |
| 15.           Exhibits and Financial Statement Schedules                                                                                          | 17          |

----

| ● | President Building comprises three blocks of commercial buildings, including two commercial towers, situated in Shenyang City, Heping North Street, which is the financial district of Shenyang.  While the original intention was to sell the office space, management subsequently decided to retain the majority of the property for leasing purposes.  The buildings maintain a high occupancy rate with tenants that are primarily international companies, 19 of which are Fortune 500 companies.  Great China Holdings’ head office is situated on the 25th and 26th Floors of President Building. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Chenglong Garden, situated in Shenyang Huang Gu District, comprises 12 blocks of modern apartments consisting of 865 residential apartments, a number of retail shops and ancillary facilities including basement car parking facilities and parks.  As of December 31, 2010, all 865 residential units had been sold, and approximately 3,198 square meters of commercial space has been leased. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Qiyun New Village is situated along the Nanyun Riverside and consists of 347 residential units, all of  which were sold as of December 31, 2010. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Peacock Garden is situated in Shenyang City, Heping North Street, is in the commercial district of Shenyang, and is comprised of 197 low-density residential apartments, all of which had been sold as of December 31, 2010. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ● | The Maryland Building consists of 12,858 square meters, of which 11,310 have been sold and the remaining 1,548 square meters are held for leasing purposes. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

----

| ● | President Building comprises three blocks of commercial buildings, including two commercial towers, situated in Shenyang City, Heping North Street, which is the financial district of Shenyang.  While the original intention was to sell a majority of the office buildings, management subsequently decided to retain most of the properties for leasing purposes.  The buildings maintain a high occupancy rate with tenants that are primarily international companies, 19 of which are Fortune 500 companies.  Great China Holdings’ head office is situated on the 25th and 26th Floors of President Building. |
|---------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Chenglong Garden, situated in Shenyang Huang Gu District, comprises 12 blocks of modern apartments consisting of 865 residential apartments, a number of retail shops and ancillary facilities including basement car parking facilities and parks.  As of December 31, 2010, all 865 residential units had been sold, and approximately 3,198 square meters of commercial space has been leased. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Qiyun New Village is situated along the Nanyun Riverside and consists of 347 residential units, all of which were sold as of December 31, 2010. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | Peacock Garden is situated in Shenyang City, Heping North Street, is in the commercial district of Shenyang, and is comprised of 197 low-density residential apartments, all of which had been sold as of December 31, 2010. |
|---------|------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ● | The Maryland Building consists of 12,858 square meters, of which 11,310 have been sold and the remaining 1,548 square meters are held for leasing purposes. |
|---------|-------------------------------------------------------------------------------------------------------------------------------------------------------------|

|                          | PresidentBuilding | PeacockGarden | ChenglongGarden | MarylandBuilding | QiyunNew Village |
|-------------------------------|-------------------|---------------|-----------------|------------------|------------------|
|                          |              |          |            |             |             |
| Construction date             | June 1999         | April 1999    | June 2000       | June 1997        | April 1996       |
| Construction completion date  | Dec 2002          | Nov 2000      | Oct 2002        | Nov 1998         | Nov 1997         |
| Permission for pre-sale/sales | Feb 2001          | April 1999    | June 2001       | Dec 1997         | July 1997        |
| Date of first sales           | May 1999          | May 1999      | Sept 2001       | Nov 1997         | May 1997         |

| Sales Revenue Mix                                                        |
|--------------------------------------------------------------------------|
|                                                                     | 2010 |   | 2009 |
|                                                                     | % | $ |   | % |   | $ |
| Properties sales:                                                        |   |   |   |   |   |   |
|      Qiyun New Village                          | 5.3 | 404,742 |   |  7.1 |   |    614,120 |
|       Peacock Garden                       | 2.7 | 206,151 |   | 0.9 |   | 81,331 |
|       Chenglong Garden Phases I & II   | 9.5 | 722,790 |   | 20.2 |   | 1,746,308 |
|                                                                     |   |   |   |   |   |   |
|                                                                     | 17.5 | 1,333,683 |   | 28.2 |   | 2,441,759 |
|                                                                     |   |   |   |   |   |   |
| Rental income                                                            | 57.8 | 4,401,303 |   | 50.7 |   | 4,404,149 |
|                                                                     |   |   |   |   |   |   |
| Building management income:                                              |   |   |   |   |   |   |
|       President Building Management Center | 24.7 | 1,876,208 |   | 21.1 |   | 1,828,776 |
|                                                                     |   |   |   |   |   |   |
|                                                                     | 100.0 | 7,611,194 |   | 100.0 |   | 8,674,684 |

----

| Lender(bank)                         | Amount of loan(RMB: 000’s)  | Guaranty(President Building)  | MortgagedArea  |
|-------------------------------------------|----------------------------------------|------------------------------------|---------------------|
| Commercial Bank of China Zhongshan Branch | 131,800                                | Block A, 1st-2rd floor (axle 1-7)  | 2930.63             |
| Block A, 8th-9th floor                    | 2195.72                                |
| Block A, 11th –14th floor           | 4380.76                                |
| Block A, 17th-26th floor                  | 10925.20                               |
| Block A, 3rd-4th floor, (axle 7-11)       | 5309.63                                |
| Block C, 13th – 19th Floor          | 7682.01                                |
|                                      |                                   |                               |                |
| Total mortgaged area                      |                                   |                               | 33,423.95           |

----

| Calendar Quarter Ended | High Bid ($) | Low Bid ($) |
|------------------------|--------------|-------------|
| March 31, 2009         | 0.40         | 0.25        |
| June 30, 2009          | 0.75         | 0.35        |
| September 30, 2009     | 0.75         | 0.41        |
| December 31, 2009      | 0.35         | 0.35        |
|                   |         |        |
| March 31, 2010         | 0.5          | 0.5         |
| June 30, 2010          | 0.45         | 0.45        |
| September 30, 2010     | 0.25         | 0.25        |
| December 31, 2010      | 0.25         | 0.25        |

----

----

|                               |   Total |       |   Less thanone year |   |   1-3 Years |   |   Thereafter |
|------------------------------------|--------------|------------|--------------------------|--------|------------------|--------|-------------------|
| Short-Term Debt                    | $            | 19,969,697 |                     | $      | 19,969,697       |   | $                 | - |   | $ | - |
| Long-Term Debt                     |         | -          |                     |   | -                |   |              | - |   |   | - |
| Amounts due to related parties     |         | -          |                     |   | -                |   |              | - |   |   | - |
| Construction commitments           |         | -          |                     |   | -                |   |              | - |   |   | - |
| Total Contractual Cash Obligations | $            | 19,969,697 |                     | $      | 19,969,697       |   | $                 | - |   | $ | - |

----

----

| Name               | Age    | Position                             | Since  |
|--------------------|--------|--------------------------------------|--------|
|               |   |                                 |   |
| Jiang Peng         | 47     | Chairman of the Board of Directors   | 2008   |
| Sun Dongqing       | 40     | Director and Chief Financial Officer | 2008   |
| Duan Jing Shi      | 59     | Director                             | 2005   |
| Raymond Reed Baker | 34     | Director                             | 2008   |

----

----

|  Name and Principal Position |  Year |  Salary($) |   | All OtherCompensation($) |   |  Total($) |
|-----------------------------------|------------|-----------------|--------|--------------------------|--------|----------------|
|                              |       |            |   |                     |   |           |
| Jiang Peng (1)                    | 2010       | 121,212         |   | --                       |   | 121,212        |
|   Chairman of the Board | 2009       | 117,200         |   | --                       |   | 117,200        |
|                              | 2008       | 87,823          |   | --                       |   |  87,823   |
|                              |       |            |   |                     |   |           |
| Sun Dongqing, CFO (2)             | 2010       | 10,909          |   | --                       |   | 10,909         |
|                              | 2009       | 10,548          |   | --                       |   | 10,548         |
|                              | 2008       | 9,481           |   | --                       |   |  9,481    |

----

|  Name             | Fees Earned orPaid in Cash ($) | All OtherCompensation($) |  Total($) |
|------------------------|--------------------------------|--------------------------|----------------|
|                   |                           |                     |           |
| Duan Jing Shi (1)      | -0-                            | -0-                      | -0-            |
|                   |                           |                     |           |
| Raymond Reed Baker (2) | 18,182                         | -0-                      | 18,182         |

| Name and Address                                                                                                                               | Number ofShares | Percent ofClass |
|------------------------------------------------------------------------------------------------------------------------------------------------|-----------------|-----------------|
|                                                                                                                                           |            |            |
| Frank JiangC Site 25-26F President BuildingNo. 69 Heping North Street, Heping DistrictShenyang 110003, People’s Republic of China        | 8,245,447(1)    | 70.1            |
|                                                                                                                                           |            |            |
| Jiang PengC Site 25-26F President BuildingNo. 69 Heping North Street, Heping DistrictShenyang 110003, People’s Republic of China         | 1,085,745(2)    | 9.23            |
|                                                                                                                                           |            |            |
| Duan Jing ShiC Site 25-26F President BuildingNo. 69 Heping North Street, Heping DistrictShenyang 110003, People’s Republic of China      | 91,024          | 0.77            |
|                                                                                                                                           |            |            |
| Sun DongqingC Site 25-26F President BuildingNo. 69 Heping North Street, Heping DistrictShenyang 110003, People’s Republic of China       | 0               | -0-             |
|                                                                                                                                           |            |            |
| Raymond Reed BakerC Site 25-26F President BuildingNo. 69 Heping North Street, Heping DistrictShenyang 110003, People’s Republic of China | -0-             | -0-             |
|                                                                                                                                           |            |            |
| All executive officers and directors as a group (4 persons)                                                                                    | 9,422,216       | 80.1            |

----

| ·   | the material facts as to his, her, or their relationship or interest and as to the contract or transaction are disclosed or are known to the Board of Directors or the committee and noted in the minutes, and the Board of Directors or committee, in good faith, authorizes the contract or transaction in good faith by the affirmative vote of a majority of disinterested directors, even though the disinterested directors are less than a quorum; |
|--------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the material facts as to his, her, or their relationship or interest and as to the contract or transaction are disclosed or are known to the shareholders entitled to vote thereon, and the contract or transaction is specifically approved or ratified in good faith by the majority of shares entitled to vote, counting the votes of the common or interested directors or officers; or |
|--------------------|---------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|

| ·   | the contract or transaction is fair as to Great China International as of the time it is authorized or approved. |
|--------------------|------------------------------------------------------------------------------------------------------------------|

|                                                                                   |  Year ended       |         | Year ended  |
|----------------------------------------------------------------------------------------|------------------------|--------------|------------------|
|                                                                                   |  December 31,2010 |         | December 31,2009 |
| 1.           Audit fees         | $                 |  82,147 |             | $  |   84,284 |
| 2.           Audit-related fees |                   | 3,500        |             |   | 3,853 |
| 3.           Tax fees           |                   | -0-          |             |   | -0- |
| 4.           All other fees     |                   | -0-          |             |   | -0- |
| Totals                                                                                 | $                 |  85,647 |             | $  |  88,137 |

----

| Exhibit No.  | Title of Document                                                                                                                                                            |
|-------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| 3.1               | Articles of Incorporation (1)                                                                                                                                                     |
|              |                                                                                                                                                                              |
| 3.2               | Articles of Amendment effective September 15, 2005 (2)                                                                                                                            |
|              |                                                                                                                                                                              |
| 3.3               | Bylaws (1)                                                                                                                                                                        |
|              |                                                                                                                                                                              |
| 10.1              | Loan Agreement dated June 18, 2007 between Shenyang Maryland International Industry Co., Ltd. and Shenyang City Commercial Bank (Holdings) Co., Ltd, Zhongshan Branch (11)        |
|              |                                                                                                                                                                              |
| 10.2              | Loan Pledge Agreement dated June 18, 2007 between Shenyang Maryland International Industry Co., Ltd. and Shenyang City Commercial Bank (Holdings) Co., Ltd, Zhongshan Branch (11) |
|              |                                                                                                                                                                              |
| 10.3              | Employment Agreement executed on May 22, 2008 between Great China International Holdings, Inc. and Dongqing Sun (16)                                                              |
|              |                                                                                                                                                                              |
| 14.1              | Code of Ethics (2)                                                                                                                                                                |
|              |                                                                                                                                                                              |
| 21.1              | List of Subsidiaries (2)                                                                                                                                                          |
|              |                                                                                                                                                                              |
| 31.1              | Certification of Chief Executive Officer                                                                                                                                          |
|              |                                                                                                                                                                              |
| 31.2              | Certification of Chief Financial Officer                                                                                                                                          |
|              |                                                                                                                                                                              |
| 32.1              | Certifications of Chief Executive Officer and Chief Financial Officer                                                                                                             |

----

|                            |                                     |                                         |
|---------------------------------|------------------------------------------|----------------------------------------------|
|                            | GREAT CHINA INTERNATIONAL HOLDINGS, INC. |
|                            |                                     |                                         |
|                            |                                     |                                         |
| Date: April 15, 2011            | By                                       | /s/ Jiang Peng                               |
|                            |                                     | Jiang Peng, Chairman of the Board            |
|                            |                                     | (Principal Executive Officer)                |
|                            |                                     |                                         |
|                            |                                     |                                         |
| Date:  April 15, 2011 | By                                       | /s/ Sung Dongqing                            |
|                            |                                     | Sung Dongqing, Chief Financial Officer       |
|                            |                                     | (Principal Financial and Accounting Officer) |

|                 |                         |
|----------------------|------------------------------|
| Date: April 15, 2011 | /s/ Jiang Peng               |
|                 | Jiang Peng, Director         |
|                 |                         |
|                 |                         |
| Date: April 15, 2011 | /s/ Duan Jingshi             |
|                 | Duan Jingshi, Director       |
|                 |                         |
|                 |                         |
| Date: April 15, 2011 | /s/ Sung Dongqing            |
|                 | Sung Dongqing, Director      |
|                 |                         |
|                 |                         |
| Date: April 15, 2011 | /s/ Raymond Reed Baker       |
|                 | Raymond Reed Baker, Director |
|                 |                         |

----

|                                                    | Page |
|---------------------------------------------------------|------|
| Report of Independent Registered Public Accounting Firm | F-2  |
| Consolidated Balance Sheets                             | F-3  |
| Consolidated Statements of Operations                   | F-4  |
| Consolidated Statements of Stockholders’ Equity   | F-5  |
| Consolidated Statements of Cash Flows                   | F-6  |
| Notes to the Consolidated Financial Statements          | F-7  |

----

----

| GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES                               |
|-----------------------------------------------------------------------------------------|
| CONSOLIDATED BALANCE SHEETS                                                             |
| AS OF DECEMBER 31, 2010 AND 2009                                                        |
|                                                                                    |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |  December 31, 2010 |   |  December 31, 2009 |
|                                                                                    |   |   |   |   |   |   |   |   |
| ASSETS                                                                                  |
|                                                                                    |   |   |   |   |   |   |   |   |
| Current assets:                                                                         |   |   |   |   |   |
|                                                                                    | Cash and cash equivalents | $  |                9,584,071  |   | $  |                9,933,271  |
|                                                                                    | Accounts receivable, net |   |                       17,816  |   |   |                      117,487  |
|                                                                                    | Other receivable, net |   |                     195,436  |   |   |                      217,085  |
|                                                                                    | Properties held for resale |   |                               -  |   |   |                   2,060,146  |
|                                                                                    |   |   | Total current assets |   |                  9,797,323  |   |   |                 12,327,988  |
|                                                                                    |   |   |   |   |   |   |   |   |
| Property and equipment, net                                                             |   |                  1,133,641  |   |   |                   1,590,183  |
| Rental property, net                                                                    |   |                49,436,381 |   |   |                 49,802,284  |
| Total assets                                                                            | $  |              60,367,345  |   | $  |              63,720,456  |
|                                                                                    |   |   |   |   |   |   |   |   |
| LIABILITIES AND STOCKHOLDERS' EQUITY                                                    |
|                                                                                    |   |   |   |   |   |   |   |   |
| Current liabilities:                                                                    |   |   |   |   |   |
|                                                                                    | Bank loans | $  |            19,969,697  |   | $  |               19,308,700  |
|                                                                                    | Accounts payable |   |                  4,184,672  |   |   | 4,170,921  |
|                                                                                    | Accrued expenses |   |                     172,059  |   |   | 163,147  |
|                                                                                    | Other payable |   |                  2,047,904  |   |   |                   1,863,809  |
|                                                                                    | Payable to disposed subsidiaries |   |                     795,674  |   |   |                      769,337  |
|                                                                                    | Commission payable |   |                               -  |   |   |                   1,784,105  |
|                                                                                    | Advances from customers |   |                  1,263,290  |   |   |                   1,392,027  |
|                                                                                    | Taxes payable |   |                  9,191,984  |   |   |                   9,065,238  |
|                                                                                    |   |   | Total current liabilities |   |                37,625,280  |   |   |                 38,517,285  |
|                                                                                    |   |   |   |   |   |   |   |   |
| Stockholders' equity:                                                                   |   |   |   |   |   |
|                                                                                    | Common stock,  $.001 par value 50,000,000 shares authorized, |   |   |   |   |   |
|                                                                                    | 11,759,966  issued and outstanding |   |   |   |   |   |
|                                                                                    | as of December 31, 2010 and 2009 |   |                       11,760  |   |   |                        11,760  |
|                                                                                    | Additional paid in capital |   |                  4,566,156  |   |   |                   4,566,156  |
|                                                                                    | Statutory reserve |   |                     638,128  |   |   |                      638,128  |
|                                                                                    | Accumulated other comprehensive income |   |                  2,964,637  |   |   |                   2,251,110  |
|                                                                                    | Retained earnings |   |                14,561,384  |   |   |                 17,736,017  |
|                                                                                    |   |   |   |   |   |   |   |   |
| Total stockholders' equity                                                              |   |                22,742,065  |   |   |                 25,203,171  |
|                                                                                    |   |   |   |   |   |   |   |   |
| Total liabilities and stockholders' equity                                              | $  |             60,367,345  |   | $  |              63,720,456  |
|                                                                                    |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |

----

| GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES                               |
|-----------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE LOSS                      |
| FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009                                          |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |   |  December 31, |
|                                                                                    |   | 2010 |   | 2009 |
|                                                                                    |   |   |   |   |   |   |
| Net revenues                                                                            |   |   |   |   |   |
|                                                                                    | Real estate sales | $   |                                 1,333,683 |   | $   |                                      2,441,759 |
|                                                                                    | Rental income |   | 4,401,303 |   |   | 4,404,149 |
|                                                                                    | Management fee income |   | 1,876,208 |   |   | 1,828,776 |
|                                                                                    | Total revenues |   | 7,611,194 |   |   | 8,674,684 |
|                                                                                    |   |   |   |   |   |   |
| Cost of revenues                                                                        |   |   |   |   |   |
|                                                                                    | Real estate cost |   | 933,988 |   |   | 1,514,550 |
|                                                                                    | Rental cost |   | 3,777,785 |   |   | 3,712,671 |
|                                                                                    | Management fee cost |   | 1,267,840 |   |   | 1,045,395 |
|                                                                                    | Total cost |   | 5,979,613 |   |   | 6,272,616 |
|                                                                                    |       Gross profit |   | 1,631,581 |   |   | 2,402,068 |
|                                                                                    |   |   |   |   |   |   |
| Operation expenses                                                                      |   |   |   |   |   |
|                                                                                    | Selling expenses |   | 44,691 |   |   | 261,778 |
|                                                                                    | General and administrative expenses |   | 2,322,718 |   |   | 4,261,847 |
|                                                                                    | Abandonment of real estate inventory |   | 574,308 |   |   |   - |
|                                                                                    | Depreciation and amortization |   | 199,679 |   |   | 179,900 |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |       Total operation expenses |   | 3,141,396 |   |   | 4,703,525 |
|                                                                                    |   |   |   |   |   |   |
| Loss from operations                                                                    |   | (1,509,815) |   |   | (2,301,457) |
|                                                                                    |   |   |   |   |   |   |
| Other income (expense)                                                                  |   |   |   |   |   |
|                                                                                    | Land leveling income |   |                                       205,650 |   |   |                                          2,196,000 |
|                                                                                    | Other income, net |   | 191,720 |   |   | 93,412 |
|                                                                                    | Interest and finance costs |   | (2,062,188) |   |   | (2,079,954) |
|                                                                                    |   |   |   |   |   |   |
|                                                                                    |      Total other (expense) income, net |   | (1,664,818) |   |   | 209,458 |
|                                                                                    |   |   |   |   |   |   |
| Net loss                                                                                |   | (3,174,633) |   |   | (2,091,999) |
|                                                                                    |   |   |   |   |   |   |
| Other comprehensive income (loss):                                                      |   |   |   |   |   |
|                                                                                    | Foreign currency translation adjustment |   | 713,527 |   |   | (36,788) |
|                                                                                    |   |   |   |   |   |   |
| Comprehensive income loss                                                               | $   |                                (2,461,106) |   | $   |                                       (2,128,787) |
|                                                                                    |   |   |   |   |   |   |
| Net loss per share                                                                      |   |   |   |   |   |
|                                                                                    | Basic | $   |                                         (0.21) |   | $   |                                                (0.18) |
|                                                                                    | Diluted | $   |                                         (0.21) |   | $   |                                                (0.18) |
|                                                                                    |   |   |   |   |   |   |
| Weighted average number of shares outstanding                                           |   |   |   |   |   |
|                                                                                    | Basic |   | 11,759,966 |   |   | 11,759,966 |
|                                                                                    | Diluted |   | 11,759,966 |   |   |  11,759,966 |
|                                                                                    |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |

----

| GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES                               |
|-----------------------------------------------------------------------------------------|
|  CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY                                   |
| FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009                                          |
|                                                                                    |
|                                                                                    |   |   |   |   |   |   |   |   |  Accumulated |   |   |   |   |   |   |   |   |   |
|                                                                                    |   |   |   |   |   |  Additional |   |  Other |   |   |   |   |   |   |   |  Total |
|                                                                                    |  Common Stock |   |  Paid in |   |  Comprehensive |   |  Statutory |   |   Retained |   |  Stockholders' |
|                                                                                    |  Shares |   |  Amount |   |  Capital |   |  Income |   |  Reserve |   |   Earnings |   |  Equity |
| Balance, December 31, 2008                                                              |   11,759,966 |   | $  |        11,760 |   | $  |    4,566,156 |   | $  |                     2,287,898 |   | $  |       638,128 |   | $  |            19,828,016  |   | $  |      27,331,957  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended December 31, 2009                                           |                  - |   |   |                - |   |   |                 - |   |   |                                  - |   |   |                 - |   |   |            (2,091,999) |   |   |      (2,091,999) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                 |                  - |   |   |                - |   |   |                 - |   |   |                       (36,788) |   |   |                 - |   |   |                         -  |   |   |           (36,788) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2009                                                              |   11,759,966 |   |   |        11,760 |   |   |    4,566,156 |   |   |                     2,251,110 |   |   |       638,128 |   |   |           17,736,017  |   |   |      25,203,171  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Net loss for the year ended December 31, 2010                                           |                 - |   |   |                - |   |   |                 - |   |   |                                 - |   |   |                 - |   |   |            (3,174,633) |   |   |      (3,174,633) |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Foreign currency translation adjustment                                                 |                  - |   |   |                - |   |   |                 - |   |   |                       713,527 |   |   |                 - |   |   |                           -  |   |   |           713,527  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| Balance, December 31, 2010                                                              |   11,759,966 |   | $  |        11,760 |   | $  |    4,566,156 |   | $  |                    2,964,637 |   | $  |       638,128 |   | $  |            14,561,384  |   | $  |      22,742,065  |
|                                                                                    |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |

----

| GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES                               |
|-----------------------------------------------------------------------------------------|
| CONSOLIDATED STATEMENTS OF CASH FLOWS                                                   |
| FOR THE YEARS ENDED DECEMBER 31, 2010 AND 2009                                          |
|                                                                                    |
|                                                                                    |   |  DECEMBER 31, |
|                                                                                    |   |  2010 |   |  2009 |
|                                                                                    |   |   |   |   |   |   |
| Cash flows from operating activities:                                                   |   |   |   |   |   |
| Net loss                                                                                | $  | (3,174,633) |   | $  | (2,091,999) |
| Adjustments to reconcile net loss to operating activities -                             |   |   |   |   |   |
|   net cash provided by (used in) operating activities                         |   |   |   |   |   |
|                                                                                    | Depreciation and amortization |   | 3,155,299  |   |   | 3,047,681  |
|                                                                                    | Provision for doubtful accounts |   | 292,338  |   |   | 57,941  |
| (Increase) decrease in current assets:                                                  |   |   |   |   |   |
|                                                                                    | Accounts receivable and other receivable |   | (203,355) |   |   | 568,073  |
|                                                                                    | Advances to suppliers |   | 40,464  |   |   | (61,730) |
|                                                                                    | Properties held for resale |   | 1,549,979  |   |   | 1,087,097  |
| Increase (decrease) in current liabilities:                                             |   |   |   |   |   |
|                                                                                    | Accounts payable and accrued expenses |   | (1,777,504) |   |   | 100,140  |
|                                                                                    | Advances from buyers |   | (171,971) |   |   | (603,869) |
|                                                                                    | Income and other taxes payable |   | (10,416) |   |   | (36,857) |
| Net cash (used in) provided by operating activities                                     |   | (299,799) |   |   | 2,066,478  |
|                                                                                    |   |   |   |   |   |   |
| Cash flows from investing activities:                                                   |   |   |   |   |   |
|                                                                                    | Construction in progress |   |                               -  |   |   |                                   35,136  |
|                                                                                    | Purchases of property & equipment |   | (70,747) |   |   | (365,246) |
| Net cash used in investing activities                                              |   | (70,747) |   |   | (330,110) |
|                                                                                    |   |   |   |   |   |   |
| Effect of exchange differences                                                          |   | 21,346  |   |   | (17,479) |
|                                                                                    |   |   |   |   |   |   |
| Net increase (decrease) in cash and cash equivalents                                    |   | (349,200) |   |   | 1,718,890  |
|                                                                                    |   |   |   |   |   |   |
| Cash and cash equivalents, beginning of period                                          |   | 9,933,271  |   |   | 8,214,381  |
|                                                                                    |   |   |   |   |   |   |
| Cash and cash equivalents, end of period                                                | $  | 9,584,071  |   | $  | 9,933,271  |
|                                                                                    |   |   |   |   |   |   |
| Supplemental disclosures of cash flow information:                                      |   |   |   |   |   |
|                                                                                    | Interest paid | $  | 2,066,691  |   | $  | 2,086,802  |
|                                                                                    | Income taxes | $  |                                -  |   | $  | 95,795  |
|                                                                                    |   |   |   |   |   |   |
| The accompanying notes are an integral part of these consolidated financial statements. |

----

----

| Buildings                     |   | 8-26 years |
|-------------------------------|--------|------------|
| Equipment                     |   | 5 years    |
| Automobile                    |   | 5 years    |
| Office furniture and fixtures |   | 5 years    |

|                                   | December 31, 2010 |        | December 31, 2009 |
|----------------------------------------|-------------------|-------------|-------------------|
| Building                          | $                 | 1,119,091   |              | $ | 1,454,158 |
| Automobile                        |              | 1,115,742   |              |   | 1,078,811 |
| Office equipment & Furniture  |              | 530,178     |              |   | 442,466 |
|                                   |              |        |              |
|                              |              | 2,765,011   |              |   | 2,975,435 |
|                                   |
| Accumulated depreciation          |              | (1,631,370) |              |   | (1,385,252) |
|                                   |              |        |              |
| Property and equipment, net       | $                 | 1,133,641   |              | $ | 1,590,183 |

----

----

----

|               | December 31, 2010 |     | December 31, 2009 |
|--------------------|-------------------|----------|-------------------|
| Qiyun New Village  | $                 | -        |              | $ | 610,096 |
| Peacock Garden     |              | -        |              |   | 85,936 |
| Chenglong Garden   |              |   - |              |   | 861,345 |
| President Building |              | -        |              |   | 218,724 |
| Maryland Building  |              | -        |              |   | 268,447 |
| Others             |              | -        |              |   | 15,598 |
|               |              |     |              |
| Total              | $                 | -        |              | $ | 2,060,146 |

----

|                        | December 31, 2010 |    | December 31, 2009 |
|-----------------------------|-------------------|---------|-------------------|
| Payroll and welfare payable | $                 | 108,502 |              | $ | 97,898 |
|  Accrued expenses      |              | 63,557  |              |   | 65,249 |
|                        |              |    |              |
| Total                       | $                 | 172,059 |              | $ | 163,147 |

|                                     | December 31, 2010 |                                                                                                               | December 31, 2009 |
|------------------------------------------|-------------------|--------------------------------------------------------------------------------------------------------------------|-------------------|
| Customer guarantee deposit               | $                 |              1,086,931                            |              | $ |                 935,847 |
| Customer deposit for property decoration |              |                   16,341 |              |   |                     8,768 |
| Miscellaneous payable                    |              |                 944,632            |              |   |                 919,194 |
| Total                                    | $                 |              2,047,904                            |              | $ | 1,863,809 |

|                                 | December 31, 2010 |      | December 31, 2009 |
|--------------------------------------|-------------------|-----------|-------------------|
| Income tax payable in Mainland China | $                 | 1,161,273 |              | $ | 1,119,909 |
| Income tax payable in Hong Kong      |              | 5,049,321 |              |   | 5,049,321 |
| Business tax                         |              | 644,878   |              |   | 633,292 |
| Land VAT payable                     |              | 2,273,503 |              |   | 2,199,205 |
| Other levies                         |              | 63,009    |              |   | 63,511 |
| Total                                | $                 | 9,191,984 |              | $ | 9,065,238 |

| Nature    | Due on     | Interest per Annum |   | December 31, 2010 |
|-----------|------------|--------------------|--------|-------------------|
| Bank loan | 10-13-2011 | 10.395%            |   | $                 | 13,909,091 |
| Bank loan | 6-12-2011  | 8.775%             |   |              | 6,060,606 |
| Total     |       |               |   | $                 | 19,969,697 |

----

| Nature    | Due on     | Interest per Annum |   | December 31, 2009 |
|-----------|------------|--------------------|--------|-------------------|
| Bank loan | 10-13-2010 | 10.395%            |   | $            | 13,448,700 |
| Bank loan | 6-12-2010  | 8.775%             |   |              | 5,860,000 |
| Total     |       |               |   | $            | 19,308,700 |

|   | i.     | Making up cumulative prior years’ losses, if any;                                                                                                                                                                                                                                                                                                                                                                 |
|--------|--------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | ii.    | Allocations to the “Statutory Surplus Reserve” of at least 10% of income after tax, as determined under PRC accounting rules and regulations, until the fund amounts to 50% of the Company’s registered capital;                                                                                                                                                                                      |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | iii.   | Allocations of 5% to 10% of income after tax, as determined under PRC accounting rules and regulations, to the Company’s “Statutory Common Welfare Fund”, which is established for the purpose of providing employee facilities and other collective benefits to the Company’s employees; and statutory common welfare fund is no longer required per the new cooperation law executed in 2006. |
|   |   |                                                                                                                                                                                                                                                                                                                                                                                                                    |
|   | iv.    | Allocations to the discretionary surplus reserve, if approved in the stockholders’ general meeting.                                                                                                                                                                                                                                                                                                               |

| Risk-free interest rate      | 6.00%        |
|------------------------------|--------------|
| Expected life of the options | 2 year  |
| Expected volatility          | 121.79%      |
| Expected dividend yield      | 0%      |

----

| Risk-free interest rate      | 8.25%        |
|------------------------------|--------------|
| Expected life of the options | 2 year  |
| Expected volatility          | 83.76%       |
| Expected dividend yield      | 0%      |

|                             | Shares |
|----------------------------------|--------|
| Outstanding on December 31, 2008 | 20,000 |
|                             |   |
| Granted                          | -      |
| Exercised                        | -      |
| Forfeited or expired             | 20,000 |
|                             |   |
| Outstanding on December 31, 2009 | -      |
|                             |   |
| Granted                          | -      |
| Exercised                        | -      |
| Forfeited or expired             | -      |
|                             |   |
| Outstanding on December 31, 2010 | --     |
| Exercisable on December 31, 2010 | --     |

|                                     | For December 31 |
|------------------------------------------|-----------------|
|                                     | 2010            |   | 2009 |
| US current income tax expense (benefit)  |            |   |   |   |   |
| Federal                                  | $               | - |   | $ | - |
| State                                    |            | - |   |   | - |
| HK current income tax expense            |            | - |   |   | - |
| PRC current income tax expense (benefit) |            | - |   |   | -  |
| Total provision for income tax           | $               | - |   | $ | -  |

----

|                                             |  December 31, 2010 | December 31, 2009 |
|--------------------------------------------------|-------------------------|-------------------|
| Tax expense (credit) at statutory rate - federal | 35%                     | 35%               |
| State tax expense net of federal tax             | 0%                      | 0%                |
| Changes in valuation allowance                   | (35%)                   | (35%)             |
| Foreign income tax - HK                          | 16.5%                   | 16.5%             |
| Valuation allowance                              | (16.5%)                 | (16.5%)           |
| Foreign income tax expense - PRC                 | 25%                     | 25%               |
| Tax expense at actual tax rate                   | 25%                     | 25%               |

|                             | December 31, 2010 |                                                                                                          | December 31, 2009 |
|----------------------------------|-------------------|---------------------------------------------------------------------------------------------------------------|-------------------|
| Net operation loss carry forward | $                 | (696,357)                                                                                                     |              | $ | (585,540) |
| Total deferred tax assets        |              | 243,725                                                                                                  |              |   | 204,939  |
| Less: valuation allowance        |              | (243,725)                                                                                                     |              |   | (204,939) |
| Net deferred tax assets          |         |                  -  |              |   |                     -  |
| Change in valuation allowance    | $                 | (38,786)                                                                                                      |              | $ | (40,159) |

|                             | December 31 2010 |                                                                                                                      | December 31, 2009 |
|----------------------------------|------------------|---------------------------------------------------------------------------------------------------------------------------|-------------------|
| Net operation loss carry forward | $                | (151,758)                                                                                                                 |              | $ | (139,387) |
| Total deferred tax assets        |             | 25,040                                                                                                               |              |   | 24,392  |
| Less: valuation allowance        |             | (25,040)                                                                                                                  |              |   | (24,392) |
| Net deferred tax assets          |        |                    -  |              |   |                      -  |
| Change in valuation allowance    | $                | (648)                                                                                                                     |              | $ | (2,644) |

----

|                        | December 31, 2010 |                                                                                                                      | December 31, 2009 |
|----------------------------------|-------------------|---------------------------------------------------------------------------------------------------------------------------|-------------------|
| Net operation loss carry forward | $                 | (7,942,947)                                                                                                               |              | $ | (4,891,502) |
| Total deferred tax assets        |              | 1,985,737                                                                                                            |              |   | 1,222,875  |
| Less: valuation allowance        |              | (1,985,737)                                                                                                               |              |   | (1,222,875) |
| Net deferred tax assets          |         |                    -  |              |   |                      -  |
| Change in valuation allowance    | $                 | (762,862)                                                                                                                 |              | $ | (363,897) |

|                          | December 31, 2010 |                                                                                                                      | December 31, 2009 |
|-------------------------------|-------------------|---------------------------------------------------------------------------------------------------------------------------|-------------------|
| Aggregate                     |         |                                                                                                                      |              |    |   |
| Total deferred tax assets     | $                 | 2,254,502                                                                                                            |              | $ | 1,452,206  |
| Less: valuation allowance     |              | (2,254,502)                                                                                                               |              |   | (1,452,206) |
| Net deferred tax assets       | $                 |                    -  |              | $ |                      -  |
| Change in valuation allowance | $                 | (802,296)                                                                                                                 |              | $ | (406,700) |

----

|                                  |                               |         |  December 31, 2010                                                                                                                                                                   |                                                                                                                                                |  December 31, 2009 |
|---------------------------------------|------------------------------------|--------------|-------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|-----------------------------------------------------------------------------------------------------------------------------------------------------|-------------------------|
| Revenues from unaffiliated customers: |                               |         |                                                                                                                                                                                      |                                                                                                                                                |                    |
|                                  | Selling of properties              | $            |                       1,333,683                                        |                                                                                                                                                | $                       | 2,441,759  |
|                                  | Rental income & Management fee |         | 6,277,511                                                                                                                                                                            |                                                                                                                                                |                    | 6,232,925  |
|                                  |                               | Consolidated | $                                                                                                                                                                                         |                       7,611,194  |                    | $ | 8,674,684  |
| Operating loss:                       |                               |         |                                                                                                                                                                                      |                                                                                                                                                |                    |
|                                  | Selling of properties              | $            | 693,498                                                                                                                                                                              |                                                                                                                                                | $                       | (359,039) |
|                                  | Rental income & Management fee |         |                          220,304                        |                                                                                                                                                |                    | 648,793  |
|                                  | Corporation (1)                    |         | (1,849,309)                                                                                                                                                                               |                                                                                                                                                |                    | (2,591,211) |
|                                  |                               | Consolidated | $                                                                                                                                                                                         | (935,507)                                                                                                                                           |                    | $ | (2,301,457) |
| Net loss before taxes:                |                               |         |                                                                                                                                                                                      |                                                                                                                                                |                    |
|                                  | Selling of properties              | $            | (1,942,999)                                                                                                                                                                               |                                                                                                                                                | $                       | (2,526,168) |
|                                  | Rental income & Management fee |         |                          220,304                        |                                                                                                                                                |                    | 649,142  |
|                                  | Corporation (1)                    |         | (1,451,938)                                                                                                                                                                               |                                                                                                                                                |                    | (214,973) |
|                                  |                               | Consolidated | $                                                                                                                                                                                         |                 (3,174,633)                                         |                    | $ |                       (2,091,999) |
| Identifiable assets:                  |                               |         |                                                                                                                                                                                      |                                                                                                                                                |                    |
|                                  | Selling of properties              | $            |                            1,994              |                                                                                                                                                | $                       | 2,665,781  |
|                                  | Rental & management fee        |         | 51,301,702                                                                                                                                                                           |                                                                                                                                                |                    | 52,083,220  |
|                                  | Corporation (1)                    |         | 9,063,650                                                                                                                                                                            |                                                                                                                                                |                    | 8,971,455  |
|                                  |                               | Consolidated | $                                                                                                                                                                                         |                     60,367,345             |                    | $ |                       63,720,456  |
| Depreciation and amortization:        |                               |         |                                                                                                                                                                                      |                                                                                                                                                |                    |
|                                  | Rental & management fee        | $            | 199,679                                                                                                                                                                              |                                                                                                                                                | $                       | 179,900  |
| Capital expenditures:                 |                               |         |                                                                                                                                                                                      |                                                                                                                                                |                    |
|                                  | Rental & management fee        | $            |                              1,856  |                                                                                                                                                | $                       | 318,319  |

----

----