Is Chinese overseas investment about to surge back?

The Yuan stabilized in 2017

TRD New York /
Jan.January 16, 2018 01:30 PM

Will the Chinese investment drought be over soon? Outbound investment from the nation fell 29.4 percent in 2017 to $120 billion, according to newly released government figures, but some observers expect capital controls to be lifted in 2018.

“The tighter capital controls, which was the biggest reason behind the slump in (overseas direct investment), will gradually be eased as the yuan stabilizes,” Standard Chartered economist Ding Shuang told Bloomberg. “Policy makers will approve more overseas acquisitions and mergers with real business needs — this is necessary as the nation seeks to open up the economy and internationalize the yuan.”

The Yuan’s value rose 6.8 percent against the dollar last year.

Beijing started implementing capital controls in late 2016 to slow down investment outflows and stabilize the country’s currency. Over the course of 2017, regulators also tightened the screws on several large conglomerates that had invested heavily in New York real estate, such as Anbang Insurance Group and HNA Group.

As a result, Chinese interest in New York real estate cooled noticeably, contributing to an overall market swoon.  [Bloomberg]Konrad Putzier


Related Articles

arrow_forward_ios

Real estate stocks push up this week as U.S.-China trade tensions ease

416 West 25th Street and Maverick Real Estate Partners principal David Aviram (Credit: Google Maps and LinkedIn)

Chelsea landlord claims “predatory” lender is charging a crippling interest rate as punishment after losing foreclosure case

Joel Schreiber (Credit: Shir Stein and Wikipedia)

WeWork’s first investor used his stock as collateral. Now his lenders are suing him

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

30 West 31st Street and 52 West 36th Street (Credit: Google Maps)

South Korean firm snaps up two Midtown hotels for $137M

Cammeby's International Group founder Rubin Schron and, from top: 194-05 67th Avenue, 189-15 73rd Avenue and 64-05 186th Lane (Credit: Google Maps)

Ruby Schron lands $500M refi for sprawling Queens apartment portfolio

163 North 6th Street and the Tel Aviv Stock Exchange Bull (Credit: Google Maps, Wikipedia)

Joel Gluck’s Israeli bond issuance falls through as Williamsburg rental project faces financing crunch

NYC’s foreign investment landscape in the era of trade wars and heightened nationalism

arrow_forward_ios