UNITED STATES SECURITIES AND
EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-Q T
     QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934For the quarterly period June 30, 2010 ̈
     TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934for the transition period from        to  Commission File No.
0-23015 GREAT CHINA
INTERNATIONAL HOLDINGS, INC. (Exact name of registrant as specified in its charter) Nevada
     
     87-0450232(State or Other Jurisdiction of
Incorporation or Organization)
     
     (IRS Employer Identification No.) C Site 25-26F Presidential Building, No. 69 Heping North Street Heping District, Shenyang 110003, Peoples Republic of China (Address of Principal Executive Offices) 0086-24-22813888 (Issuers telephone number) Not Applicable (Former name, address and fiscal year, if changed since last report) Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or
15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the issuer was required
to file such reports), and (2) has been subject to such filing requirements for the past 90 days.   Yes   x   No   ̈ Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a
non-accelerated filer, or a smaller reporting company (as defined in Rule 12b-3 of the Exchange Act). (check one) Large accelerated filer   ̈   Accelerated filer   ̈
          Non-accelerated filer   ̈   Smaller reporting company  x Indicate by check mark whether the registrant is a shell company (as defined in rule 12b-2 of the Exchange
     Act).   Yes   ̈   No  x State the number of shares outstanding of each of the issuers classes
of common equity:  As of August 14, 2010,
there were 11,759,966 shares of common stock outstanding.




TABLE OF CONTENTS
     
     Page PART I.
     Item 1. Financial Information
     3Balance Sheet as of June 30, 2010 (Unaudited) and
December 31, 2009
     3Statements of Operations for the Three-Month and Six-Month
 Periods Ended June 30, 2010 and 2009 (Unaudited)
     4Statements of Cash Flows for the Six-Month Periods
Ended June 30, 2010 and 2009 (Unaudited)
     5Notes to the Financial Statements (Unaudited)
     6Item 2.  Managements Discussion and Analysis of
Financial Condition and Results of Operations
     20Item 3.  Quantitative and Qualitative Disclosures
About Market Risk
     22Item 4.  Controls and Procedures
     22PART II.
     Other Information
     23Item 6. Exhibits
     23Signatures
     24  2




GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
                                            CONSOLIDATED BALANCE SHEETS
                                      AS OF JUNE 30, 2010 AND DECEMBER 31, 2009
                                             (UNAUDITED) June 30, 2010
     
        
     December 31, 2009ASSETSCurrent assets:Cash and equivalents
     $8,123,680
        

     $9,933,271Accounts receivable, net
     260,237
        

     117,487Prepayment & other receivable, net
     620,724
        

     217,085Properties held for resale
	 
     1,446,584
        

     
        2,060,146Total current assets
     10,451,225
        

     12,327,988Property and equipment, net
     1,189,309
        

     1,590,183Rental property, net
     49,044,553
        

     49,802,284Total assets
     $60,685,087
        

     $63,720,456LIABILITIES AND STOCKHOLDERS EQUITYCurrent liabilities:Bank loans
     $19,435,228
        

     $19,308,700Accounts payable
     4,198,258
        

     4,170,921Accrued expenses & Other payable
     2,039,754
        

     2,026,956Payable to disposed subsidiaries
     774,379
        

     769,337Commission payable
     --
        

     1,784,105Advances from buyers
        
        
     1,115,029
        

     1,392,027Taxes payable
     9,068,910
        

     9,065,238Total current liabilities
     36,631,559
        

     38,517,285Stockholders equity:Common stock,  $.001 par value 50,000,000 sharesauthorized, 11,759,966 issued and outstandingas of June 30, 2010 and December 31, 2009
     11,760
        

     11,760Additional paid in capital
     4,566,156
        

     4,566,156Statutory reserve
        
        
     
        638,128
        

     
        638,128Accumulated other comprehensive income
     2,214,720
        

     2,251,110Retained earnings
        
        
     
        16,622,764
        

     
        17,736,017Total stockholders equity
     24,053,528
        

     25,203,171Total liabilities and stockholders' equity
     $60,685,087
        

     $63,720,456 The accompanying notes are integral part of these unaudited consolidated
financial statements. 3




GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF OPERATIONS AND OTHER COMPREHENSIVE INCOME/(LOSS)
 FOR THE THREE MONTH AND THE SIX MONTH PERIODS ENDED JUNE 30, 2010 AND
2009 (UNAUDITED) Three month periods ended
     
     Six month periods endedJune 2010
     
     June 2009


     June 2010


     June 2009RevenuesReal estate sales
        
        
     $448,112
        

     $299,320
        

     $691,740
        

     $480,376Rental income
     1,061,164
        

     974,842
        

     2,149,275
        

     1,958,439Management fee income
     465,856
        

     470,779
        

     924,468
        

     926,152Total revenues
     1,975,132
        

     1,744,942
        

     3,765,483
        

     3,364,966Cost of revenues
     1,420,710
        

     1,344,798
        

     2,970,966
        

     2,655,150Gross profit
     554,422
        

     400,144
        

     794,517
        

     709,816Operation expensesSelling expenses
     8,669
        

     163,782
        

     27,843
        

     226,995General and administrative expenses
     365,661
        

     456,664
        

     907,780
        

     1,319,769Depreciation and amortization
     47,852
        

     45,359
        

     94,792
        

     91,626Total operation expenses
     422,182
        

     665,805
        

     1,030,415
        

     1,638,389Income (loss) from operations
     132,240
        

     (265,662
        )

     (235,898
        )

     (928,573
        )Other income (expense)Land leveling income
     --
        

     107,663
        

     --
        

     2,126,358Other income, net
     65,318
        

     171,156
        

     99,093
        

     314,079Interest and finance costs
     (498,069
        )

     (488,887
        )

     (976,447
        )

     (969,422
        )Total other income, net
     (432,751
        )

     (210,067
        )

     (877,354
        )

     1,471,015Income (loss) before income taxes
     (300,511
        )

     (475,729
        )

     (1,113,252
        )

     542,442Provision for income taxes
     --
        

     137
        

     --
        

     258,729Net income (loss)
     (300,511
        )

     (475,867
        )

     (1,113,252
        )

     283,713Other comprehensive income (loss):Foreign currency translation adjustment
     (71,503
        )

     4,367
        

     (36,390
        )

     (43,663
        )Comprehensive income (loss)
     $(372,014
        )

     $(471,500
        )

     $(1,149,642
        )

     $240,050Net income (loss) per shareBasic
     $(0.03
        )

     $(0.04
        )

     $(0.09
        )

     $0.02Diluted
     $(0.03
        )

     $(0.04
        )

     $(0.09
        )

     $0.02Weighted average number of shares outstandingBasic
     11,759,966
        

     11,759,966
        

     11,759,966
        

     11,759,966Diluted
     11,759,966
        

     11,759,966
        

     11,759,966
        

     11,759,966 The accompanying notes are integral part of
these unaudited consolidated financial statements. 4




GREAT CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES
                                       CONSOLIDATED STATEMENTS OF CASH FLOWS
                             FOR THE SIX MONTHS PERIODS ENDED JUNE 30, 2010 AND 2009
                                                    (UNAUDITED) June 30, 2010
     
     June 30, 2009Cash flows from operating activities:Net income (loss)
     $(1,113,253
        )

     $283,713Adjustments to reconcile net income (loss) to operating activities -net cash provided by operating activitiesDepreciation and amortization
     1,552,465
        

     1,464,642Provision for doubtful accounts
     58,120
        

     121,093Accounts receivable and other receivable
     (199,415
        )

     237,260Advances to suppliers
     (399,404
        )

     (22,263
        )Prepaid expenses
     --
        

     (140,887
        )Properties held for resale
     623,031
        

     318,629Increase/(decrease) in liabilities:Accounts payable and accrued expenses
     (1,782,607
        )

     (289,045
        )Advances from buyers
     (284,281
        )

     (351,715
        )Income and other taxes payable
     (22,490
        )

     167,089Net cash provided by (used in) operating activities
     (1,567,834
        )

     1,788,516Cash flows from investing activities:Purchases/(disposal) of property & equipment
     (56,722
        )

     46,203Effect of exchange differences
     (185,034
        )

     35,290Net increase/(decrease) in cash and cash equivalents
     (1,809,591
        )

     1,870,009Cash and cash equivalents, beginning of period
     9,933,271
        

     8,214,381Cash and cash equivalents, end of period
     $8,123,680
        

     $10,084,390Supplemental disclosures of cash flow information:Interest paid
     $976,447
        

     $249,665Income taxes
     $--
        

     $-- The accompanying notes are integral part of these unaudited consolidated
financial statements. 5




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 1.
Description
of business Nature of organization Great
 China  International  Holdings,  Inc.,  (the  Company) was  incorporated  in the
State of Nevada on      December  4, 1987,  under the name of Quantus  Capital,  Inc.,
 and in 1992,  it changed its name to Red Horse   Entertainment  Corporation. Effective July 5, 2005, the Company completed the acquisition of Silverstrand International Holdings Limited (Silverstrand), a Hong Kong limited liability company, by issuing 10,102,333 shares of its common voting stock to the former stockholders of Silverstrand in exchange for all of the capital stock of Silverstrand.  For financial reporting purposes the acquisition was treated as a recapitalization of Silverstrand.  On September 15, 2005, the Company changed its name to Great China International Holdings, Inc. from Red Horse Entertainment Corporation. Silverstrand was incorporated on September 30, 2004 in Hong Kong Special Administrative Region, PRC, and is the holding company of Shenyang Maryland International Industry Company Limited, formerly Shenyang Malilan Audio Equipment Company, Limited (Shenyang Maryland).  Shenyang Maryland was originally registered as a limited liability Sino-foreign joint investment enterprise on December 15, 1989, in Shenyang, Liaoning Province, PRC.  In October 2004, Silverstrand acquired all of the registered equity of Shenyang Maryland, and this transfer and the reclassification of Shenyang Maryland as a wholly foreign-owned enterprise (WFOE) was approved in November 2004 by the Liaoning Provincial Bureau of Foreign Trade and Economic Cooperation.  This approval was subsequently registered, and a business registration certificate (No. 111103721 (1-1)) was issued to Shenyang Maryland as a WFOE in April 2005 by the Shenyang Municipal Administration of Industry and Commerce.  The original business licenses for Shenyang Maryland described our business scope as real estate development, sales, leasing, and property management.  In January of 2010, the Company modified the business scope to real estate leasing, property management, and consulting. The Company, through
its various subsidiaries, has engaged in commercial and residential real estate leasing, management, consulting,
investment, development and sales in the city of Shenyang, Lianing Province, in the Peoples Republic of China
 (PRC). 2.
Summary
of significant accounting policies Unaudited Interim Financial Information The accompanying unaudited financial statements of the Company have been prepared in accordance with generally accepted accounting principles for interim financial information. Accordingly, they do not include all of the information required by generally accepted accounting principles for complete financial statements.
In the opinion of management, all adjustments (consisting of normal recurring
adjustments) considered necessary for a fair presentation have been included.
Operating results for the interim periods are not necessarily indicative of the
results for any future period. These statements should be read in conjunction with
the Companys audited financial statements and notes thereto for the fiscal year
ended December 31, 2009. The results of the six month periods ended June 30, 2010 are not necessarily indicative of the results to be expected for the full fiscal year ending December 31, 2010 6




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 Foreign currency translation - The Company uses the United States
dollar for financial reporting purposes. The Companys subsidiaries maintain
their books and records in their functional currency - Chinese Yuan Renminbi (CNY),
being the primary currency of the economic environment in which their operations are
conducted. Such financial statements were translated into United States dollars in
accordance with ASC 830 (Originally issued as Statement of Financial Accounts
Standards (SFAS) No. 52, Foreign Currency Translation). According to
the Statement, all assets and liabilities are translated at the current exchange
rate, stockholders equity are translated at the historical rates and income
statement and statement of cash flows items are translated at the average exchange
rate for the period. As a result, amounts related to assets and liabilities reported
on the statement of cash flows may not necessarily agree with changes in the
corresponding balances on the balance sheet. The resulting translation adjustments
are reported under other comprehensive income in accordance with ASC 220 (Originally
issued as SFAS No. 130, Reporting Comprehensive Income) as a component of
shareholders equity. The
 accompanying  consolidated  financial  statements  have  been  prepared  in  conformity
 with  accounting      principles  generally  accepted in the United  States of America.
 The accompanying  consolidated  financial statements have been translated and      presented
in United States Dollars ($) on the basis set forth below. Principles
of Consolidation  The accompanying consolidated financial statements include
the accounts of the Company and its wholly-owned subsidiaries. All
significant inter-company transactions and balances within the Company are
eliminated in consolidation. Cash and cash equivalents -The Company considers all cash on hand and in banks, including accounts in book overdraft positions, certificates of deposit and other highly-liquid investments with maturities of three months or less, when purchased, to be cash and cash equivalents. Allowance
for Doubtful Accounts - The Company maintains reserves for potential credit losses on accounts receivable.
Management reviews the composition of accounts receivable and other receivable and
analyzes historical bad debts, customer concentrations, customer credit worthiness,
current economic trends and changes in customer payment patterns to evaluate the
adequacy of these reserves. As of June 30, 2010 and December 31, 2009, the
Company reserved $3,387,490 and $7,238,597 respectively, for other receivable bad
debt, and $309,912 and $312,009, respectively, for accounts receivable bad debt. Real Estate Held for Development or SaleThe Company capitalizes
as real estate held for development or sale, the direct construction and
development costs, property taxes, interest incurred on costs related to land
under development and other related costs (i.e. engineering, surveying, landscaping,
etc.) until the property reaches its intended use. In first quarter of 2010, the
company moved one building that amounted $374,548(RMB 2,540,000) to properties held
for rental. As of June 30, 2010 and December 31, 2009, real estate held for
development or sale amounted to $1,446,584 and $2,060,146, respectively. Properties
held for rental Properties include buildings held for rental and land use rights, which
are being depreciated over the estimated useful lives of the related assets.
Depreciation is 7




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 computed on the straight-line basis over 20-26 years.
As of June 30, 2010 and December 31, 2009, net property held for rental
amounted to $49,044,553 and $49,802,284 respectively.  Accumulated depreciation
of rental properties amounted to $16,943,091 and $15,383,654 respectively as of
June 30, 2010 and December 31, 2009. Property
and equipment  Property and equipment is being depreciated over the estimated
useful lives of the related assets. Depreciation is computed on the straight-line
basis over useful lives as follows: Buildings
     
     8-26 yearsLeasehold improvements
     
     20 yearsEquipment
     
     5 yearsAutomobile
     
     5 yearsOffice furniture and fixtures
     
     5 years As of June 30, 2010 and December 31, 2009, Property, Plant & Equipment consist of the following: June 30, 2010

     December 31, 2009Building
     $
        1,089,139
        
        
     $
        1,454,158Automobile

     1,085,881
        
        
     1,078,811Office equipment & Furniture

     502,454
        

     442,466$2,677,474
        

     2,975,435Accumulated depreciation

     (1,488,165
        )

     (1,385,252
        )Property and equipment, net

     $1,189,309
        

     $1,590,183 Depreciation expense for the three month
periods ended June 30, 2010 and 2009 totaled $94,792 and $91,626 respectively. Repairs
and maintenance costs are normally charged to the statement of and comprehensive income in the year in
which they      are incurred. In situations where it can be clearly demonstrated that the
expenditure has resulted in an      increase in the future economic benefits expected to
be obtained from the use of the asset, the expenditure      is capitalized as an
additional cost of the asset. Property
and equipment are evaluated  annually for any impairment in value.  Where the
 recoverable  amount of      any property and equipment is determined to have declined
below its carrying  amount,  the carrying  amount is      reduced to reflect the decline
in value.  There were no property and equipment  impairments  recognized during  the six month periods ended June 30, 2010 and 2009. As of June 30, 2010 fixed assets and
rental property totaling $27,839,904 have been pledged as collateral to various
banks in respect of borrowings totaling $19,435,228. 8




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 Construction-in-progress Properties currently under development are accounted for as
construction-in-progress. Construction-in-progress is recorded at acquisition
cost, including land rights cost, development expenditure, professional fees
and the interest expenses capitalized during the course of construction for the
purpose of financing the project. Upon completion and readiness for use of the project,
the cost of construction-in-progress is to be transferred to properties held for
sale. Construction-In-Progress
 is valued at the lower of cost or market.  Management  evaluates the market value of
     its  properties  on a  quarterly  basis by  comparing  selling  prices of its
 properties  with those of other      equivalent  properties in the vicinity  offered by
other developers  reduced by anticipated  selling costs and      associated taxes. In the
case of construction in progress,  management takes into  consideration the estimated
     cost to complete the project when making the lower of cost or market calculation. As of June 30, 2010 and December 31, 2009, the Company had zero and zero construction-in-progress balance, respectively. Revenue Recognition Real estate sales Real
estate sales are reported in  accordance  with the  provisions of ASC 360, Accounting
 for Sales of      Real  Estate.  Profit from the sales of  development  properties,
 less 5% business tax, is recognized by the      full accrual method when the sale is
consummated.  A sale is not considered  consummated until (1) the parties      are bound
by the terms of a contract,  (2) all consideration has been exchanged,  (3) any permanent
 financing      of which the seller is  responsible  has been  arranged,  (4) all
 conditions  precedent  to closing have been      performed,  (5) the seller does not
have substantial  continuing  involvement  with the property,  and (6) the      usual
risks and rewards of ownership have been  transferred to the buyer.  Sales  transactions
not meeting all      the  conditions of the full accrual  method are accounted for using
the deposit  method of  accounting.  Under      the deposit method,  all costs are
capitalized as incurred,  and payments received from the buyer are recorded      as a
deposit  liability. Real
Estate Capitalization and Cost Allocation Real
estate held for  development  or sale is stated at cost or estimated net realizable
 value,  whichever is      lower. Costs include land and land improvements,  direct
 construction costs and development costs,  including      predevelopment  costs,
 interest on  indebtedness,  real estate taxes,  insurance,  construction  overhead and
     indirect  project costs.  Selling and  advertising  costs are expensed as incurred.
 Total  estimated costs of      multi-unit developments are allocated to individual units
based upon specific identification methods. 9




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 If
the real estate is  determined  to be  impaired,  it will be written  down to its fair
market  value.  Real      estate held for  development  or sale costs  include the cost
of land use rights,  land  development  and home      construction  costs,  engineering
 costs,  insurance costs,  wages, real estate taxes, and interest related to
     development  and  construction.  All costs are  accumulated by specific  projects
and allocated to residential      and commercial  units within the respective  projects.
 The Company leases the land for the  residential  unit      sites under land use rights
with  various  terms from the  government  of the PRC. The Company  evaluates  the
     carrying  value for  impairment  based on the  undiscounted  future cash flows of
the assets.  Write-downs  of      inventory  deemed  impaired would be recorded as
adjustments to the cost basis.  No  depreciation  is provided      for construction in
progress. Rental income and
management fee income The Company recognizes the rental income on the straight-line basis over the terms of the tenancy agreements. The management fee, including the service fee mainly for property management, maintenance and repair, and security, is recognized quarterly over the terms of the tenancy agreements. Capitalization
of Interest In accordance with ASC 835,
interest incurred during construction is capitalized to construction
in progress. All other interest is expensed as incurred. During the six
month periods ended June 30, 2010, the Company did not have any such interest
to be capitalized. Other
income Other income consists of land leveling income, parking income, cleaning income and etc, of which land leveling income was a one-time service performed at the request of our customers, and gain on settlement of debt. These revenues were recognized as the services were performed and the settled amount has been paid in accordance with the terms of the agreement. Earnings Per Share - Basic earnings per share is computed by dividing net income by the weighted-average number of common shares outstanding during the period. Diluted earnings per share is computed by dividing net income by the weighted-average number of common shares and dilutive potential common shares outstanding during the period. As of June 30, 2010 and 2009, there were no outstanding securities or other contracts to issue common stock, such as options, warrants or conversion rights, which would have a dilutive effect on earnings per share as the effect of options outstanding at that time was anti- dilutive. Income taxes  The Company
utilizes ASC 740 (Originally issued as SFAS No. 109, Accounting for Income Taxes),
which requires the recognition of deferred tax assets and liabilities for the expected future tax
consequences of events that have been included in the financial statements or
tax returns. Under this method, deferred income taxes are recognized for the tax
consequences in future years of differences between the tax basis of assets and
liabilities and their financial reporting amounts at each period end based on enacted
tax laws and statutory 10




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 tax rates applicable to the periods in which the difference are expected to affect taxable income.
Valuation allowances are established, when necessary, to reduce deferred tax
assets to the amount expected to be realized. The Company accounts for income taxes using an asset and liability approach which allows for the recognition and measurement of deferred tax assets based upon the likelihood of realization of tax benefits in future years. Under the asset and liability approach, deferred taxes are provided for the net tax effects of temporary differences between the carrying amounts of assets and liabilities for financial reporting purposes and the amounts used for income tax purposes. A valuation allowance is provided for deferred tax assets if it is more likely than not these items will either expire before the Company is able to realize their benefits, or that future deductibility is uncertain. The Company records a valuation allowance for deferred tax assets, if any, based on its estimates of its future taxable income as well as its tax planning strategies when it is more likely than not that a portion or all of its deferred tax assets will not be realized. If the Company is able to utilize more of its deferred tax assets than the net amount previously recorded when unanticipated events occur, an adjustment to deferred tax assets would increase the Company net income when those events occur. Use
of estimates  The preparation of financial statements in accordance with
 accounting principles generally accepted in the United States of America requires management to make estimates and
assumptions that affect reported amounts of assets and liabilities and disclosure
of contingent assets and liabilities at the date of the financial statements and
reported amounts of revenues and expenses during the reporting period. Actual
results could differ from those estimates. Concentrations
of business and credit risk  Financial instruments that potentially subject the
Company to concentrations of credit risk are cash and cash equivalents, accounts receivable and other
receivables arising from its normal business activities. The Company places
its cash and cash equivalents in what it believes to be credit-worthy financial institutions. The
Company has a diversified customer base, most of which are in China. The
Company controls credit risk related to accounts  receivable  through credit approvals,
 credit limits and      monitoring  procedures.  The Company  routinely  assesses the
financial  strength of its customers  and, based      upon factors surrounding the credit
risk,  establishes an allowance,  if required,  for uncollectible accounts      and, as a
consequence,  believes that its accounts  receivable  credit risk exposure  beyond such
allowance is      limited. Statement of cash flows - In accordance with ASC 230 (Originally issued as SFAS No. 95), Statement of Cash Flows, cash flows from the Company's operations is calculated based upon the local currencies. As a result, amounts related to assets and liabilities reported on the statement of cash flows may not necessarily agree with changes in the corresponding balances on the balance sheet. 11




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 Subsequent Events  For purposes of determining whether a
post-balance sheet event should be evaluated to determine whether it has an effect
on the financial statements for the period ending June 30, 2010 pursuant to
ASC 855(Originally issued as SFAS No. 165), subsequent events were evaluated by
the Company as of August 15, 2010, the date on which the Form 10-Q, which included
the unaudited consolidated financial statements at and for the six month periods
ended June 30, 2010, was available to be issued. Recent
accounting pronouncements  In June 2009,
the FASB issued ASC 810 (previously SFAS No. 167) for determining whether to consolidate a
variable interest entity. These amended standards eliminate a mandatory quantitative approach to
determine whether a variable interest gives the entity a controlling financial interest in a
variable interest entity in favor of a qualitatively focused analysis, and require an ongoing
reassessment of whether an entity is the primary beneficiary. These amended standards are effective
for us beginning in the first quarter of fiscal year 2010 and we are currently evaluating the impact
that adoption will have on our consolidated financial statements. In October 2009, the FASB issued an amendment to the accounting standards related to certain revenue arrangements that include software elements. This standard clarifies the existing accounting guidance such that tangible products that contain both software and non-software components that function together to deliver the products essential functionality, shall be excluded from the scope of the software revenue recognition accounting standards. Accordingly, sales of these products may fall within the scope of other revenue recognition standards or may now be within the scope of this standard and may require an allocation of the arrangement consideration for each element of the arrangement. This standard, for which the Company is currently assessing the impact, will become effective on January 1, 2011. In February 2010, FASB issued ASU No. 2010-9  Amendments to Certain Recognition and
Disclosure Requirements. This update addresses certain implementation issues related
to an entitys requirement to perform and disclose subsequent-events procedures,
removes the requirement that public companies disclose the date of their financial
statements in both issued and revised financial statements. According to the FASB,
the revised statements include those that have been changed to correct an error or
conform to a retrospective application of U.S. GAAP. The amendment is effective for
interim and annual reporting periods in fiscal year ending after June 15, 2010. The
Company does not expect the adoption of this ASU to have a material impact on the
Companys consolidated financial statements. Reclassifications Certain amounts in the 2009 financial statements may have been reclassified to conform
to the 2010 presentation. These reclassifications had no effect on previously
reported results of operations or retained earnings. 12




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 3.
Real estate held for development or sale Properties held for
resale at June 30, 2010 and December 31, 2009 by project are as follows: June 30, 2010
        
     December 31, 2009Qiyun New Village
          $
        361,179
        

     $
        610,096Peacock Garden
	 86,499
        

     85,936Chenglong Garden
     493,498
        

     861,345President Building
     220,158
        

     218,724Maryland Building
     270,206
        

     268,447Others
     15,044
        

     15,598Total
     $1,446,584
        

     $2,060,146 The
Company  introduced a Five-year Trial  Accommodation  Program (the Program) to attract
 potential buyers      when initial sales at the project did not meet expectations.
 Under the Program,  property buyers were required      to pay a 10%  refundable  deposit
 based on the sale price of the property or $7,373  (RMB50,000)  and another      20%,
based on the sale price of the property which is  non-refundable,  over 5 years by
monthly  installments,      totaling 30%  throughout  the trial period.  The remaining
70% of the  consideration  shall be due and payable      immediately  after the trial
period when the property  buyers exercise their option whether or not to complete
     the  purchase.  If the buyer  chooses  not to buy the  property,  the 10%
 refundable  deposit or $7,373  (RMB50,000) will be refunded to the buyers (less
any unpaid  rental due) and monthly  installments  received  over      the 5-year trial
period will have been recognized as rental income in the year in which they arose. As of June 30, 2010 and
December 31, 2009, $220,766 and $532,833 respectively worth of properties
held for sale in Qiyun New Village were occupied by individuals who agreed to
buy the properties without having fully paid the purchase consideration.
$28,790 and $87,894 were included in advance from buyers for this Program as of
June 30, 2010 and December 31, 2009 respectively. 4.
Accrued expenses Accrued expenses consisted of following as of June 30, 2010 and December 31, 2009: June 30, 2010

     December 31, 2009Payroll and welfare payable
          $
        105,873
        

     $
        97,898Accrued expenses
     8,420
        

     65,249Total
     $114,293
        

     $163,147 13




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 5.
Tax
payables Tax payables consist
of the following as of June 30, 2010 and December 31, 2009: June 30, 2010
        
     December 31, 2009Income tax payable
     $
        6,179,514
        
        
     $
        6,169,230Business tax
     626,623
        

     633,292Land VAT payable
     2,212,655
        

     2,199,205Other levies
     50,118
        

     63,511Total
     $9,068,910
        

     $9,065,238 6.
Payable to disposed subsidiary The Company has a payable to a disposed subsidiary, Loyal Best Property Development Limited, amounting to $10,494,449 as of December 31, 2007. Subsequently, the Company
paid $9,725,112 to Loyal Best during 2008 and had a balance due as of
June 30, 2010 and 2009 in the amount of $774,379 and $769,337 respectively. 7.
Short-term loans Short-term loans as of June 30, 2010 and December 31, 2009
consist of the following: Nature
     Due on
     Interest per Annum
	 
	 June 30, 2010Bank loan
     10-13-2010
     10.395%
	 
     
        13,536,828Bank loan
     6-12-2011
         8.775%
		 
         
        5,898,400Total
      
        
		
       $
        19,435,228 Nature
     Due on
     Interest per Annum
     December 31, 2009Bank loan
     10-13-2010
     10.395%
	  
     
        13,448,700Bank loan
        6-12-2010

        8.775%
        
     
        5,860,000Total
      
     
	 
     $
        19,308,700 The
above loans are secured by fixed assets and land use rights the Company owns. For the
six month periods ended June 30, 2010 and 2009, the Company
incurred interest and finance costs amounting to $976,447 and $969,422, respectively. 8.
Statutory
Reserve As stipulated by the Company Law of the Peoples Republic of China (PRC), net income after taxation can only be distributed as dividends after appropriation has been made for the following: 14




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 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. The Company accrued zero and zero statutory reserve  during 2010 and 2009, respectively. 9.
Stock Options On January 31, 2008, the Company issued a non-incentive stock option for 10,000 shares to a non-employee director with an exercise price of $0.65. The option was fully vested on the date granted and was scheduled to expire in January 2010. The holder of the option surrendered the option for cancellation on January 31, 2010, when he resigned as a director. Risk-free interest rate
     6.00%Expected life of the options
     2 yearExpected volatility
     121.79%Expected dividend yield
     0% On
January 31, 2007,  the Company  issued a  non-incentive  stock option for 10,000 shares
to a  non-employee director  with an  exercise  price of $4.65.  The options  were vested and
exercisable over a term of two years that expired on January 31, 2009. Risk-free interest rate
     8.25%Expected life of the options
     2 yearExpected volatility
     83.76%Expected dividend yield
     0% No options to purchase the Companys common stock were outstanding at June 30, 2010. A summary of option
activity as of June 30, 2010, and changes during the period then ended is presented
     below: SharesOutstanding on December 31, 2008
	 20,000Granted
	 --Exercised
	 --Forfeited or expired
	 20,000Outstanding on December 31, 2009
	 --Granted
	 --Exercised
	 --Forfeited or expired
	 --Outstanding on June 30, 2010
	 --Exercisable on June 30, 2010
	 -- 15




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 10.
Disposal of subsidiaries and discontinuance of subsidiaries Shenyang Xinchao Property Company Limited (Xinchao) and Shenyang Yindu Property Company Limited
(Yindu) were registered in August 2005 in Shenyang, Liaoning Province, in the PRC 2016.
  Xinchao and Yindu were formed and capitalized as indirect subsidiaries of the Company to acquire
  and develop a certain tract of property located in the Heping District of Shenyang with an
  area of almost 500,000 square meters known as the Xita Project.  Following transfer of the land
  use rights to the tract, the local government decided to pursue an alternative development plan
  for the area and negotiated for reacquisition of the land use rights from Xinchao and Yindu.
  Heping District refunded the purchase price for the land use rights paid by Xinchao and
  reimbursed the development costs incurred by Xinchao.  The Company decided to discontinue Xinchao
  and Yindu in October 2008.  As of December 15, 2008, the operations of Xinchao and Yindu were
  discontinued.  In 2009, 70% of the assets and liabilities were transferred to
  Shenyang Maryland International and the other 30% of the assets and the liabilities were
  transferred to Silverstrand. 11.
Income
Tax The
Company is registered in the State of Nevada and has  operations in primarily  three tax
 jurisdictions       the Peoples  Republic of China,  Hong Kong and the United  States.
 For  operation in the US, the Company has      incurred net  accumulated  operating
 losses for income tax  purposes.  The Company  believes  that it is more      likely
than not that these net  accumulated  operating  losses will not be utilized in the
future.  Therefore,      the Company has provided  full  valuation  allowance  for the
 deferred tax assets  arising from the losses at these locations as of June 30, 2010. Accordingly, the Company has no net deferred tax assets. The provision for income taxes from continuing operations on income consists of the following for the years ended June 30, 2010 and 2009: For Six Months Ended June 30,2010
     2009US current income tax expense (benefit)Federal
     $
     --
	 $
     --State
     
     --
	 
     --HK current income tax expense
     
     --
	 
     --PRC current income tax expense (benefit)
     $
     --
	 $
     258,729Total provision for income tax
     $
     --
	 $
     258,729 The following is a
reconciliation of the provision for income taxes at the U.S. federal income tax rate to
     the income taxes reflected in the Statement of Operations:  June 30, 2010
     June 30, 2009Tax 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%Valuation allowance
     (25%)
     (25%) 16




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 United States of
America As of June 30, 2010, the Company
in the United States had approximately $607,742 in net operating loss carry
forwards available to offset future taxable income. Federal net operating losses
can generally be carried forward 20 years. The deferred tax assets for the United
States entities at June 30, 2010 consists mainly of net operating loss carry
forwards and were fully reserved as the management believes it is more likely than
not that these assets will not be realized in the future. The following table sets
forth the significant components of the net deferred tax assets for operation in the
US as of June 30, 2010 and December 31, 2009. June 30, 2010
     December 31, 2009Net operation loss carry forward
     $
     (607,742)
	 $
     (585,540)Total deferred tax assets
     
     212,710
	 
     204,939Less: valuation allowance
     
     (212,710)
	 
     (204,939)Net deferred tax assets
     
     --
	 
     --Change in valuation allowance
     $
     7,771
	 $
     (40,159) Hong Kong As of June 30, 2010, the Company in Hong Kong had
approximately $142,266 in net operating loss carry forwards
available to offset future taxable income. There is no time limit for the
losses to carry forward. The deferred tax assets for the Hong Kong entities at
June 30, 2010 consists mainly of net operating loss carry forwards and were
fully reserved as the management believes it is more likely than not that these
assets will not be realized in the future. The following table sets forth the significant components of the net deferred tax assets for operation in Hong Kong as of June 30, 2010 and December 31,2009. June 30, 2010
     December 31, 2009Net operation loss carry forward
     $
     (142,266)
	 $
     (139,387)Total deferred tax assets
     
     23,474
	 
     24,392Less: valuation allowance
     
     (23,474)
	 
     (24,392)Net deferred tax assets
     
     --
	 
     --Change in valuation allowance
     $
     (918)
	 $
     (2,644) Peoples
Republic of China (PRC) Pursuant to the PRC Income
Tax Laws, the Companys subsidiary is generally subject to Enterprise Income Taxes (EIT) at a statutory rate of 25%
since January 1, 2008.  The Companys applicable EIT rate under new EIT law is 25% which was approved by local Tax department. 17




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 As of June 30, 2010 and December 31, 2009,
the Companys PRC subsidiary had net operating loss
carry forwards which can be carried forward 5 years to offset future taxable income.
The deferred tax assets for Shenyang Maryland on June 30, 2010 consist mainly of net
operating loss carry forwards and they were fully reserved as the management believes
they are more likely than not that these assets will not be realized in the future. The following table sets forth the significant components of the net deferred tax assets for operation in PRC as of June 30, 2010 and December 31, 2009. June 30, 2010
     December 31, 2009Net operation loss carry forward
     $
     (5,979,675)
	 $
     (4,891,502)Total deferred tax assets
     
     1,494,919
	 
     1,222,875Less: valuation allowance
     
     (1,494,919)
	 
     (1,222,875)Net deferred tax assets
     
     --
	 
     --Change in valuation allowance
     $
     272,044
	 $
     (363,897) Aggregate net deferred tax
assets The
following table sets forth the significant components of the aggregate net deferred tax
assets      of the Company as of June 30, 2010 and December 31, 2009: June 30, 2010
     December 31, 2009AggregateTotal deferred tax assets
     $
     1,731,103
	 $
     1,452,206Less: valuation allowance
     
     (1,731,103)
	 
     (1,452,206)Net deferred tax assets
     
     --
	 
     --Change in valuation allowance
     $
     278,897
	 $
     (406,700) 12.
Segment
Information ASC 280
requires use of the management  approach model for segment  reporting.      The  management  approach
 model is based on the way a  companys  management  organizes  segments  within the
     company for making operating  decisions and assessing  performance.  Reportable
segments are based on products      and services,  geography,  legal  structure,
 management  structure,  or any other manner in which  management      disaggregates a
company. 18




GREAT
CHINA INTERNATIONAL HOLDINGS, INC. AND SUBSIDIARIES NOTES TO  UNAUDITED CONSOLIDATED FINANCIAL STATEMENTSFOR THE SIX MONTH PERIODS ENDED JUNE 30, 2010 & 2009 During the years ended June 30, 2010 and 2009,
the Company is organized into two main business segments: (1)
Property for sale, and (2) Rental income and Income of management fee of
commercial buildings. The following table presents a summary of operating
information and certain year-end balance sheet information as of June 30, 2010 and
2009: June 30, 2010
               
     June 30, 2009Revenues from unaffiliated customers:Selling of properties

     $691,740
        
     
     $480,376Rental income & Management fee
     3,073,742
        
     
     2,884,590Consolidated
     $3,765,482
        
     
     $3,364,966Operating income (loss):Selling of properties
     $(4,904
        )
     
     $(703,377
        )Rental income & Management fee
     355,178
        
     
     214,533Corporation (1)
     (586,174
        )
     
     (439,729
        )Consolidated
     $(235,899
        )
     
     $(928,573
        )Net income (loss) before taxes:Selling of properties
     $(981,351
        )
     
     $(1,712,401
        )Rental income & Management fee
     355,178
        
     
     214,448Corporation (1)
     (487,081
        )
     
     2,040,440Consolidated
     $(1,113,253
        )
     
     $542,487Identifiable assets:Selling of properties
     $7,543
        
     
     $6,455,594Rental & Management fee
     51,116,663
        
     
     49,808,857Corporation (1)
     9,560,882
        
     
     9,922,432Consolidated
     $60,685,088
        
     
     $66,186,883Depreciation and amortization:Selling of properties
     $83,251
        
     
     $--Rental & management fee
     1,457,672
        
     
     1,464,642Corporation (1)
     $11,541
        
     
     $--Consolidated
     $1,552,465
        
     
     $1,464,642Capital expenditures:Selling of properties
     $--
        
     
     $--Rental & management fee
     57,996
        
     
     (21,389
        )Corporation (1)
     --
        
     
     (24,829
        )Consolidated
     $57,996
        
     
     $(46,219
        ) (1).
Unallocated loss from operating income (loss) and net income before provision for income taxes are
primarily related to general corporate expenses. 19




Item 2.  Managements Discussion and Analysis of Financial
Condition and Results of Operations (1)
Caution
Regarding Forward-Looking Information  The following  discussion and analysis should be read in
conjunction  with our  consolidated  financial  statements prepared in accordance with
 accounting  principles  generally  accepted in the USA.  Unless  otherwise  indicated,
references in this discussion to we,  our and us are to Great China
 International  Holdings, Inc., and its subsidiaries. Any statements in this discussion that are not historical facts are forward-looking statements that involve risks
and uncertainties; actual results may differ from the forward-looking statements. Sentences or phrases that use
such words as believes, anticipates, plans, may, hopes, can, will, expects, is designed to,
with the intent, potential  and others indicate forward-looking statements, but their absence does not mean that a statement is not forward-looking.  Factors that could have a material and adverse impact on actual results are described in our annual report on Form 10-K for the year ended December 31, 2009, filed with the Securities and Exchange Commission on April 15, 2010.  We do not undertake any obligation to publicly release the results of any revisions to these forward-looking statements that may be made to reflect events or circumstances after the date hereof or to reflect the occurrence of unanticipated events. (2)
Executive
Summary  Great China International
Holdings Inc., (the Company, We, Our) through its various subsidiaries, has been engaged in
commercial and residential real estate leasing, management, consulting, investment,
development and sales.  We conduct all our operation in the Peoples Republic of
China through our direct and indirect wholly owned subsidiaries; Shenyang Maryland
International Industry Company Limited and Silverstrand International Holdings
Company Limited. (3)
Results
of Operations Comparison of operations for six month periods ended June 30, 2010 with those for the
same period ended June 30, 2009: The Company incurred a net loss of $1,113,252 for the six-month period ended June 30,
2010 compared to a net income of $542,442 for the six-month period ended June 30,
2009, representing a 305% decrease at $1,655,694.  Factors that contributed to this
decrease are discussed below. Sales revenues increased by $400,516 or 11.90% from $3,364,966 for the six-month
period ended 2009 to $3,765,483 for the same period ended June 30, 2010. The real
estate sales increased by $211,364 or 44.00% from $480,376 to $691,740, which is
attributed to the Companys enhanced marketing efforts in 2010.  Nevertheless, ee
expect that real estate sales revenues will diminish in future periods as our current
inventory of units available for sale is sold and decreases, and since we do not have
projects in development at the present time that 20




would add to our inventory of
units.  Rental income increased by $190,836 or 9.74% for the six-month period ended
June 30, 2010 compared with the same period ended June 30, 2009.  The increase is
attributable to marketing strategies implemented in 2010 to maintain and improve
occupancy at prevailing rental rates. Cost of properties sold amounted to $2,970,966 for the six-month period ended June
30, 2010 compared to $2,655,150 for the same period of 2009. The cost of properties
sold increased by $315,816 or 11.89%. Selling expenses decreased by $199,152 or 87.73% to $27,843 for the six-months ended
June 30, 2010 from $226,995 for the same period of 2009. The main reason for this
decrease was because of reduced advertising expense. General and administrative expenses decreased by $411,989 or 31.22% to $907,780 for
the six month period ended June 30, 2010 from $1,319,769 for the same period of 2009.
During the first six months of 2010 the Company was not engaged in any significant
project development activity compared to the development activity in the first
six months of 2009, which resulted in a reduction of staff and allowed the Company to
implement other cost-cutting measures. Depreciation expense increased by $3,167 or 3.46% to $94,792 for the six-month period
ended June 30, 2010 from $91,626 for the same period of 2009. The increase was due to
new equipment purchased after the first half year of 2009 that is being depreciated
in subsequent periods, including 2010. The project that generated land leveling income in 2009 ended, so no similar income
was generated in 2010.  Consequently, $2,126,358 of land leveling income recognized
in the first half of 2009 did not recur in the first half of 2010. The other income decreased by $214,986 or 68.45% to $99,093 for the six-month period
ended June 30, 2010 from $314,079 for the same period of 2009. The decrease was
primarily the result of lower penalties charged to tenants and customers for their
late payments. Interest and finance costs remained stable in amount.  These costs dropped to
$976,447 for the six-month period ended June 30, 2010 from $969,422 for the same
period of 2009, reflecting a decrease of $7,025 or 0.72%. Cash
Flow Discussion Net cash used in operating
activities for the six-month period ended June 30, 2010 amounted to $1,567,834,
compared to net cash provided by operating activities of $1,788,516 for the same
period in 2009.  Less cash was generated from operations in the first six months of 2010
primarily because land leveling income recognized in the first half of 2009 did not
recur in the first half of 2010. Net cash used
in investing activities for the six-month period ended June 30, 2010 was $56,722,
compared to that provided by investing activities for the same period of 2009, which
amounted to $46,203. This change was primarily the result of new equipment purchases
in 2010 and the absence of cash flow from investment in construction and development
activities. 21




(4)
Liquidity
and Capital Resources Current liabilities exceeded
current assets by $26,180,334 as of June 30, 2010. The working capital deficit is mainly a
result of short term loans of $19,435,228, which represents bank borrowings secured
by certain of the Companys real estate assets that have due dates in
October 2010 and June 2011.  It has become common practice in the PRC for banks and companies to
renegotiate loan extensions on an annual basis.  Lending banks customarily work out
with borrowers loan extensions or restructurings annually within the administrative
guidelines of the government.  The Company has no reason to believe this practice
will not continue so long as the banking customs in the PRC remain unchanged, there
are no significant changes in governmental regulation of the practice, the security
for the Companys loans retains adequate value, and the Company acts responsibly
in addressing reduction of interest and principal balances when it has liquidity.
There is no assurance, however, that the practice of annual extensions will continue
indefinitely, so management expects it will continue to seek opportunities to reduce
its bank indebtedness in future periods. (5)
Contractual Obligations The following table
was a summary of the Companys contractual obligations as of June 30, 2010: Total

     Less thanone year

     1-3 Years

     ThereafterShort-Term Debt

     $
        19,435,228
        


     $
        19,435,228
        


     $
        --
        


     $
        --Long-Term Debt
     --
        

     --
        

     --
        

     --Amounts due to related parties
     --
        
     --
        
     --
        
     --Construction commitments
      
        --
        
     --
        
     --
        
     --Total Contractual Cash Obligations
     $19,435,228
        
     $19,435,228
        
     $--
        
     $--  Item 3.  Quantitative and Qualitative Disclosure About
Market Risk Disclosure under this item is not required of a smaller reporting company. Item 4.  Controls and Procedures Evaluation of Disclosure Controls and Procedures Disclosure controls and procedures, as defined in Rule 13a-15(e) under the Securities
Exchange Act of 1934 (the Exchange Act) are designed to ensure that information
required to be disclosed in reports filed or submitted under the Exchange Act is
recorded, processed, summarized, and reported within the time periods specified in rules
and forms adopted by the Securities and Exchange Commission (SEC), and that such
information is accumulated and communicated to management, including the Chief Executive
Officer and the Chief Financial Officer, to allow timely decisions regarding required
disclosures. 22




In connection with the preparation of this report, Great China Internationals management, under the supervision
and with the participation of the Chief Executive Officer and Chief Financial Officer, reassessed the
effectiveness of the design and operation of our disclosure controls and procedures as of June 30, 2010.  Based
on this evaluation, the Chief Executive Officer and Chief Financial Officer have concluded that Great China
Internationals disclosure controls and procedures were effective as of the end of the fiscal quarter on June 30, 2010, to ensure that information that is required to be disclosed by Great China International in the reports
it files or submits under the Exchange Act is recorded, processed, summarized and reported, within the time
periods specified in the SECs rules and forms.   Notwithstanding the foregoing, a control system, no matter how well designed and operated, can provide only reasonable, not absolute, assurance that it will detect or uncover failures within Great China International to disclose information that is otherwise required to be set forth in its periodic reports. Changes in Internal Control over Financial Reporting There were no changes in our internal control over financial reporting
during the three-month period ended June 30, 2010, that have materially affected, or
are likely to materially affect, our internal control over financial reporting. PART II. OTHER INFORMATION Item 6. Exhibits Copies of the
following documents are included or furnished as exhibits to this report pursuant to Item
601 of Regulation S-K. Exhibit No.
     SEC Ref. No.
     Title of Document31.1
     31
     The certification of chief executive officer required by Rule 13a-14(a) or Rule 15d-14(a)31.2
     31
     The certification of chief financial officer required by Rule 13a-14(a) or Rule 15d-14(a)32.1
     32
     The certifications required by Rule 13a-14(b) or Rule 15d-14(b) and 18 U.S.C. Section 1350 23




SIGNATURES In
accordance with the Exchange Act, the registrant caused this report to be signed on its
behalf by the undersigned thereunto duly authorized. GREAT CHINA INTERNATIONAL HOLDINGS, INC. Date: August 14, 2010
        
     By:
     
     /s/ Jiang PengJiang Peng, Chairman of the Board(Principal Executive Officer)   Date: August 14, 2010
     
     By:
     
     /s/ Sun DongqingSun Dongqing, Chief Financial Officer(Principal Financial and Accounting Officer) 24